VERGE Day 2 Recap – Dropping the “hard-to” rhetoric
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A prevalent topic we heard both in and out of sessions on the second day of VERGE was the acknowledgment that there are countless promising solutions in the market that aim to address climate change. However, the phrase “hard-to-abate” or “hard-to-decarbonize” is one that is rampant across the sustainability space. It seems limiting to focus unnecessary attention on the friction points that exist in certain sectors, when there are so many organizations and capital flows devoted to climate mitigation and adaptation efforts.
In her keynote address, Katheryn Scott , General Engineer at the U.S. Department of Energy (DOE) , called attention to the fact that we have many of the tools needed to speed and scale our global transition to zero emissions. “Stop spreading rumors, because there are billions of dollars on the table today,” she said. Scott mentioned some of the deployable levers that are available for chemicals, refining, iron & steel, food & beverage, cement, pulp & paper, aluminum and glass. These include:?
These solutions are mapped out in the DOE’s new report “Pathways to Commercial Liftoff: Industrial Decarbonization” published in September. The DOE’s series of Liftoff Reports can be found online, and contain recommended actions and targets for successful commercial deployment of a variety of sector solutions.
KNOW YOUR STEEL
We heard additional push back on the aforementioned “hard to” language in the session titled “Moving from Product to Procurement: The Path to Decarbonize Steel.” Tim Hill , Commercial Manager of Sustainability at Nucor Corporation , said “We’ve shown that it can be done, it’s doable. As a leading member of the steel industry, we are saying that steel should not be referred to as a hard-to-abate.” To exemplify the work that’s being done, Hill touched on two key themes that Nucor is leaning into: carbon free iron units and carbon free electricity. The use of recycled inputs is a significant lever they are pulling to reach a zero carbon iron product.
Also on the panel was Microsoft, who had 97% of its emissions fall into their scope 3 in 2022, primarily from its semiconductors and the steel used to build data centers. Katie Ross , Director of Carbon Reduction Strategy & Market Development at 微软 , discussed their steel decarbonization strategies, stating that it is important to think about how steel is made – what type of energy was sourced and percentage of recycled content is input. Ross said lowering the carbon in each steel investment over time is crucial. She added that Microsoft is willing to pay more for low carbon steel because it gives the demand signal needed to catalyze the market.
Hill and Ross mentioned another pathway for decarbonizing steel – sourcing renewable energy, more specifically, nuclear. Their joint venture called Helion offers a large source of carbon free electricity, using fusion power technology. With a firm caseload of power at multiple megawatts a day, Nucor uses nuclear for 24/7 clean electricity at its steel mills. This market is developing but still nascent, with less than 15 green steel plants around the globe.
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DE-RISK YOUR SUPPLY
Another cutting-edge topic that we took part in was centered around carbon insetting and food system climate mitigation. Our teammate John Bourne , Senior Director of Agriculture at 3Degrees Group, Inc. , moderated the “Incentives for Insetting'' panel, which stepped through how to integrate decarbonization efforts into value chains and the benefits that these approaches can offer to farms.?
Josiah McClellan , Head of ESG at Land O'Lakes, Inc. , mentioned that their implementation of insetting involves working closely with the procurement team, crop growers, and ag retailers in their supply chain. “It adds legitimacy to our supply chain,” he said.?
Similar to carbon offsetting, there isn’t a one size fits all solution for carbon insetting – there are numerous project types (such as regenerative agriculture or manure management technologies) to meet different sources of emissions. Fellow panelist Amy Skoczlas Cole , President of the Trust in Food Farm Journal Initiative, mentioned that the industry is becoming more mature, with diversification of the project types leading to maximum impact.?
The group agreed that insetting at its best benefits everyone in the system and ensuring the farmers are fairly compensated is essential. The question of how to equitably share in the benefit of insetting is one that we will continue to ponder.?
PUT PEOPLE FIRST
The notion of prioritizing farmers’ livelihood when addressing value chain emissions brings us to another common discussion point at the conference, and that is around a just transition.
In the second series of keynote remarks, we heard harrowing stories from Port Arthur on the Gulf Coast. John Beard, Jr. , Chairman and Executive Director of Port Arthur Community Action Network (PACAN) detailed the serious human health and environmental concerns that arise in an area such as Port Arthur, which is inundated with chemical refineries. When the well-being of human beings is not central to implementing a resource or solution, the repercussions are often felt for decades if not centuries. “Communities and workers should be at the center of the transition. People that are impacted the most must be brought to the center of the table so their voices are heard,” he said.?
The transition to zero emissions can’t happen without the inclusion of all people, and all aspects of the climate movement should have communities as a central focal point. This is an important reminder we took away from VERGE, and one we don’t take lightly.?
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