Decarbonization

There are numerous projects and types of solutions for capturing, using, and storing CO2 to prevent it from fueling climate change. To achieve the industry’s decarbonization objectives, multiple paths are being explored:

• The consumption of green or renewable energies, such as natural gas, biogas or hydrogen, aims to replace the consumption of traditional fossil fuels.
• CCUS (Carbon Capture, Utilization and Storage) technology, which makes it possible to store the carbon emitted, or to reuse it as a co-product for energy production or for the production of materials, for example for construction.
• Energy sobriety approaches, to reduce net carbon emissions.

Given the variety of innovations linked to these approaches, global manufacturing companies must still:

• Be supported in the scale-up of these sustainable processes and systems, which are not yet mature, to prove their effectiveness in the reduction of carbon emissions generated. The promises of hydrogen, for instance, have yet to be translated into a truly decarbonized production chain, in order to avoid a simple carbon emission shift in the production process.
• Implement a system with complex decarbonization strategies: as there is no single solution, innovations must be combined and designed according to the specific conditions of each sector. Decisions must often be made site by site. The use of carbon in construction materials, for instance, will only make sense if it can be used locally, as transporting materials over long distances can cancel out the carbon savings made.

What are the innovative decarbonization solutions adapted to my type of industrial process and the change of technology? How can I develop a policy that maximizes the use of several processes and systems at different stages of my production process? What are the tools upstream and downstream for measuring decarbonization strategies?

The deep changes that will be required by the decarbonization of industry generally demand a significant share of investment from industrial companies, whose management may therefore perceive them as a hurdle in the system rather than an opportunity.

In the first place, public support mechanisms appear to be essential to initiate the implementation of a low-carbon policy. But beyond the constraints, global manufacturing companies must now think of decarbonization as a type of growth lever. In a period of energy crisis, decarbonization approaches can help keep the impact of soaring fossil fuel prices low. It is also important to emphasize the significant potential impact on strategic energy autonomy, through value chains that are more independent of foreign states.

In addition, decarbonization approaches can be considered as a factor for savings, through sustainable approaches of transition and optimization of production processes and systems, but also in anticipation of carbon pricing whose weight could weigh heavily on many industries in the years to come.

How to implement an economically efficient carbon policy? What public support is available for carbon neutrality?

The climate emergency is a social issue and a concern for citizens. “Consum’actors” are more and more committed in their daily choices in favor of ecology, despite financial constraints. For this reason, industrial players in the various links of the value chain have the opportunity to respond to these public demands through their strategies for decarbonizing industry. By implementing strong and impactful action steps, some manufacturing companies can generate new sources of value by differentiating themselves in their system through their environmental commitment.

However, it is important to avoid any type of greenwashing, which can have disastrous consequences for a company’s image, sales, and recruitment appeal. The decarbonizing industry remains particularly complicated, given the multiple parameters to be taken into account and the complexity of the calculation methods. Although several labels provide a type of framework for the climate action of companies, their multiplicity does not yet provide sufficient clarity for consumers.

Economic issues are also a key challenge in the relationship between companies and consumers. In a period of strong pressure on purchasing power, the value of companies’ efforts to reduce greenhouse gas emissions and their carbon footprint must remain within acceptable proportions to avoid finding themselves nestled in a premium category that is not accessible to the average consumer.

In this context, the different actors of the value chain must share the amortization of the investment for climate protection and technology transition. This requires a rethinking of certain relationships and going beyond a customer/supplier approach to consider approaches based on partnership and cooperation.

What are the labels and initiatives that allow my company’s decarbonization efforts to be recognized? How can I set them up? How can I reinvent my value chain in order to share efforts and benefits in the system?