Many companies have publicly declared their intention to become carbon neutral in following years. Some due to CO2 emissions price (which is experiencing high increases and implies higher costs for industries), some due to marketing strategies and some because they believe that they also need to contribute to the transition. The EU Emissions Trading System (ETS) already covers sectors not included under the ESR and makes polluters to decarbonize. Also mechanisms such as the Carbon Border Adjustment Mechanism (CBAM) will also play and important role.
Development of decarbonization plans for companies is the main instrument for elaborating not only a current diagnosis of the situation but also to understand potential evolution (prospective), analyze solutions and prepare the company to take decisions without losing competitiveness.
Decarbonization 101: What Carbon Emissions Are Part Of Your Footprint? Source: visualcapitalist.com
- The first step is to measure and analyse current situation. There are different methodologies for the evaluation of emissions at companies (GHG protocol is the most used one). But there is a gap in consistent and credible measurement. Specially when it comes to evaluate Scope 3.
- Second step is to model future needs, energy demands, etc. according to market evolution, production changes, expected investments, etc. All that will be very valuable to picture the future situation and start defining what needs to be done to decarbonize.
- Last step will be to analyse all solutions that can help decarbonizing the company without compromising its economy and development. Main working areas will be: Energy efficiency (to reduce consumption), auto generation (to increase autonomy through renewables), green supply (for electricity, heating & cooling, transportation, etc.) and carbon capture, storage and reuse. Circularity is also an important aspect to work with (reuse and recyclability).