Net Zero by 2070: Decarbonization Leading the Way

Climate change and global warming are threats to society and can have detrimental effects on future generations. To combat climate change, it is essential to understand its cause – global warming. Global warming is a natural phenomenon and refers to “greenhouse gases” that trap heat close to the Earth’s surface like a blanket. To reduce global warming, therefore, we need to reduce emitting greenhouse gases (GHGs) such as carbon dioxide, methane, nitrous oxide, hydrochlorofluorocarbons, hydrofluorocarbons and ozone.

Decarbonization refers to reducing and ultimately removing carbon emissions, which can be achieved by using low-carbon energy sources.

The Paris Agreement 2015, the legally binding treaty on climate change, aims to limit global warming to well below 2° Celsius, preferably to 1.5° Celsius, compared to pre-industrial levels. Global temperature can be controlled only through reducing GHG emissions.

Stats & facts of Decarbonization

• The world is currently on track to warm by 2.7°C by the end of the century, which is far above the Paris Agreement target of 1.5°C.
• To achieve net zero emissions by 2070, global greenhouse gas emissions need to peak by 2025 and decline by 50% by 2040.
• The energy sector is responsible for about 73% of global greenhouse gas emissions.
• Renewable energy sources, such as solar and wind power, are becoming increasingly affordable and efficient.
• The cost of decarbonizing the global economy is estimated to be between 2% and 3% of global GDP per year.
• The benefits of achieving net zero emissions include avoiding catastrophic climate change, improving air quality, and creating jobs in the clean energy sector.

Here are some specific examples of what needs to happen to achieve net zero emissions by 2070:

• The world needs to transition to a clean energy system, with a focus on solar and wind power.
• We need to improve energy efficiency in buildings and industry.
• We need to develop and deploy new technologies to capture and store carbon dioxide emissions.
• We need to make changes to our lifestyles, such as driving less and eating less meat.

The path to decarbonizing emission-prone sectors

To reduce GHGs emissions, we first need to understand the major contributors.

Energy sector:

It is evident that the energy sector accounts for most of the carbon emissions. Contribution by segment is detailed below:

• Energy use in industry: 24%
• Energy use in transport: 16.2%
• Energy use in buildings: 17.5%

1. Emissions from the industry segment and the path to decarbonization:

Emission by Industry -

The industry segment of the energy sector would need to reduce 80-90% of its emissions. Decarbonization studies have found that ammonia, cement, ethylene and steel companies can reduce their carbon emissions to almost zero through improvements in energy efficiency, electric production of heat, use of hydrogen and biomass as feedstock or fuel, and carbon sequestration.

Almost 45% of industrial carbon dioxide emissions come from the production of cement, steel, ammonia and ethylene, but it is difficult to reduce these emissions for the following reasons:

• Only by changing processes and the use of fuel can carbon dioxide emissions from feedstock be reduced.
• Fossil fuels are required to generate very high temperatures. Switching from fossil fuels to alternative fuels would require significant changes in furnace design.
• Changes in one part of a process would require changes in another part of the process; this takes time and would impact production.
• Changing processes would require costly rebuilds or retrofits.

Industrial companies could reduce carbon emissions by combining decarbonization technologies such as demand-side measures, energy-efficient equipment, electrification of heat, using hydrogen and biomass as feedstock, and fuel and carbon sequestration techniques.

2. Emissions from the transport segment and the path to decarbonization:

Policymakers are taking the decarbonization of the transport segment seriously, as global GHG emissions from the segment are forecast to increase to 50-60% of total emissions by 2050. The segment relies heavily on fossil fuels to generate energy; renewable energy accounts for only around 3.7% of energy generated.

The avoid-shift-improve approach to environmental sustainability requires a transition to clean-energy fuels an improving vehicle efficient if the transport segment is to move towards decarbonization.

Positive developments & gaps in technologies

3. Emissions from the building segment and the path to decarbonization:

The building segment currently accounts for about one-third of global energy consumption; this is likely to increase significantly in the coming years, requiring that it adopt strategies such as the following to mitigate GHG emissions.

• Adopting a green buildings rating system
• Using energy-efficient equipment and at least 3-star rated appliances.
• Deploying decentralized renewable-energy systems
• Installing a building management system and smart meters
• Developing buildings with low rankings on the Energy Performance Index

The path to decarbonization:

Factors contributing to decarbonization:

• Financing energy-efficient sectors
• Hydropower installations
• Financing the non-hydro renewables segment
• Electrification of the energy sector
• Electrification of the building segment, although the transport segment lags behind
• Adherence to clean, energy-efficient and decarbonization methods

Digital transformation – key to decarbonization

Digitalization would help to deliver electricity in a safer and more reliable way to customers. This would involve application of artificial intelligence (AI), blockchain and the internet of things (IoT) to make solutions more reliable, efficient, and user-friendly.

Strategies for Digital transformation -

Leaders in decarbonization: -

Tata Group :

The group has embraced the challenge of combating climate change and has established Tata Sustainability Group to do so. It integrates issues relating to climate change with business strategy in three ways: mitigation, adaptation and responsible advocacy.

Key companies are encouraged to reduce carbon emissions and move to low-carbon operations, in line with the objectives of the Paris Agreement and science-based targets.

The transition to low-carbon operations has been accelerated by the adoption of internal carbon pricing the group: Tata Steel, Tata Chemicals, Tata Motors and Tata Global Beverages.

Tata companies strive to deal with the complex phenomenon of climate change through collaboration with organizations such as the World Business Council for Sustainable Development, the Task Force on Climate-Related Financial Disclosures, the World Bank’s Carbon Pricing Leadership Coalition, the World Economic Forum’s Alliance of CEO Climate Leaders and the Energy Transitions Commission.

Tata group companies' initiatives towards carbon neutrality -

Reliance Group :

Reliance has pledged to become net carbon zero by 2035. It is adopting new green technologies and plans to develop carbon capture and storage technology that will use carbon dioxide as a useful feedstock rather than as a waste product. It will convert transportation fuels into clean electricity and hydrogen.

The net zero carbon target is driven by sustainable development and cleaner technologies through three strategic key focus areas: digital technology platforms, new ecommerce (connecting Kirana stores through Jio Mart platforms) and decarbonization, which would lead to greater financial participation and economic involvement of Indian citizens.

Sustainable development – steps towards net zero:

Sustainability refers to using resources efficiently. The environmental impact of operations can be reduced in three ways:

• Reducing dependence on freshwater by reusing water through water management and wastewater recycling systems
• Encouraging waste management practices by reducing waste disposal and increasing waste recycling
• Reducing emissions from operations and the supply chain

The company envisions transitioning to net zero by shifting strategy from B2B to D2C that is generating value for the end consumer. This requires substantial investment in research, development, innovation and training.

Here are some countries that are leading the way in the race to net zero:

• Norway: Norway is the world's leading producer of oil and gas, but it is also a global leader in renewable energy. Norway has set a target of becoming carbon neutral by 2050 and is well on track to meet that goal.
• UK: The UK has set a target of reaching net zero emissions by 2050. The UK government has made significant investments in renewable energy and energy efficiency and is working to decarbonize its transportation and buildings sectors.
• France: France is a world leader in nuclear power. Nuclear power is a low-carbon source of energy that can help countries reach net zero emissions. France has set a target of reaching net zero emissions by 2050, and nuclear power is expected to play a major role in achieving that goal.
• China: China is the world's largest emitter of greenhouse gases. However, China is also investing heavily in renewable energy and energy efficiency. China has set a target of reaching peak emissions by 2030 and carbon neutrality by 2060.
• India: India is the world's third largest emitter of greenhouse gases. India is also investing heavily in renewable energy and energy efficiency. India has set a target of reaching net zero emissions by 2070.
• The European Union has set a target of reducing its greenhouse gas emissions by 55% by 2030. The EU is also working to develop a carbon border adjustment mechanism, which would put a price on carbon imports.

Path to Decarbonization -

Climate strategy to achieve net zero carbon emissions requires substantial investment in the following areas:

• Solar panel and energy storage battery manufacturing
• Hydrogen production and fuel-cell factory to convert hydrogen to power, with hydrogen having applications in transportation and power generation.
• Providing an ecosystem for infrastructure and materials to support constructing Iga factories
• Supporting self-reliant manufacturers within the ecosystem
• Investing in the supply chain including in upstream and downstream industries

Insightful Summary -

Net zero means achieving a balance between greenhouse gas emissions and removals so that there is no net increase in the amount of greenhouse gases in the atmosphere.

• Net zero is essential to avoid the worst impacts of climate change.
• The world is currently on track to warm by 2.7°C by the end of the century, which is far above the Paris Agreement target of 1.5°C.
• To achieve net zero emissions by 2050, global greenhouse gas emissions need to peak by 2025 and decline by 50% by 2030.
• The energy sector is responsible for about 75% of global greenhouse gas emissions.
• Renewable energy sources, such as solar and wind power, are becoming increasingly affordable and efficient.
• The cost of decarbonizing the global economy is estimated to be between 2% and 3% of global GDP per year.
• The benefits of achieving net zero emissions include avoiding catastrophic climate change, improving air quality, and creating jobs in the clean energy sector.