After the decarbonization breakthrough in numerous industries across the many verticals, industrial decarbonization is the next big goal. As industries accounted for nearly 28% of global greenhouse gas emissions in 2014, global decarbonization cannot be achieved without considering the impact of industrial decarbonization. Therefore, global efforts are imperative to drive innovation and scale-up decarbonization technologies for different industries.
As industrial sites usually have long lifetimes, replacing or upgrading the facilities to lower carbon emissions require industry owners to start working out and implementing effective decarbonization solutions. This would be comparatively easy to achieve in collaboration with decarbonization companies, which have researched, experimented, and got results.
Industrial Decarbonization: Major Step Towards Global Decarbonization
Similar to the building sector, existing industrial footprints must undergo a massive renovation effort. We estimate that 40% of the stock could be upgraded by 2030, accounting for new constructions. Fuel switching strategies on the existing stock retrofitted would aim primarily at displacing oil and coal use.
But how can we make significant impacts?
The simple answer is, through a detailed review of opportunities across different sectors. We estimate that around 10% of energy could be saved from deep retrofits thanks to the penetration of digital technologies with competitively high paybacks, proving an enabler of innovative decarbonization solutions.
While the manufacturing sector is largely eligible for electrified heating provisions, primary industries would switch in part to electric heating and natural gas. And this would prove to be one of the unique decarbonization solutions.
Decarbonization Solutions Paving Way Towards A Low-Carbon Future
1. Robust and Integrated Platforms
Robust and integrated platforms are the need for global industrial decarbonization. Schneider Electric’s Climate Change Advisory Service, assists organizations in tackling decarbonization challenges and achieving carbon neutral targets through a unique combination of measurement, supplier engagement, strategy setting, and implementation via renewable energy procurement, carbon offsetting, AI-driven data collection and disclosure and value chain decarbonization.
Moreover, it helps companies in their decarbonization and climate-related sustainability initiatives and strategies.
2. Digitize to Decarbonize
As we can observe extreme climate changes, it is imperative to change energy sources and energy consumption patterns. Taking cue to the rising criticality, the world is transitioning to renewable energy sources from the use of fossil fuels.
Nonetheless, to make industrial decarbonization a reality, industries need to take up the challenge of transitioning in transformative ways, such as adopting technically advanced decarbonization solutions based on data derived from the Internet of Things, artificial intelligence, etc.
3. Benefits of Collaborations and Decarbonization Services
Collaborations and coordinated efforts have become the heart and soul of global industrial decarbonization, allowing businesses to share their expertise and technology, and working out resilient decarbonization solutions.
Schneider Electric has made an agreement with Roca Group, a world leader in the design, production and commercialization of products for the bathroom space, to define a new roadmap towards decarbonization with innovative and digitalized decarbonization solutions, establishing a robust global strategy across the Group.
This collaboration would carried out in three phases:
First, Roca Group will work with Schneider Electric in order to define its vision of the decarbonization solutions and process.
Second, Schneider Electric will thoroughly study Roca group’s plants and will set commitments for reducing carbon emissions, implementing sustainable energy generation in workspaces and factories, and for compensating in some way or the other for the emissions they cannot eliminate.
And third, the implementation phase, in which, Schneider Electric and Roca Group will advance towards company’s processes’ digitalization, production centers’ sensorization to monitor and optimize energy consumption and reduce emissions and costs.
4. Decarbonization of Supply Chain
Decarbonization of the supply chain is important to make a larger impact, and it is a great example of coordinated efforts. Schneider Electric has been actively participating in offering automation and digital decarbonization solutions. As a part of our decarbonization services and efforts, we have launched a global supply chain decarbonization service. It aims to help organizations address and eradicate the significant carbon emission volume in their value chains.
5. Participation in Programs and Taking Initiatives
Companies offering decarbonization solutions and services participate in different programs and initiatives to fuel their goals and ambitions. Industries can participate in global programs, take up challenges and initiatives, and collaborate with companies like Schneider Electric for setting robust goals and effective implementation of decarbonization solutions. Use cases for decarbonization initiatives by Schneider Electric:
a) Zero Carbon Project
Under this initiative, Schneider Electric will partner with its 1000 suppliers, representing 70% of Schneider’s carbon emissions, by reducing its suppliers’ emission to half by 2030.
b) Decarbonization of Energy: Access to Energy Program
Under this initiative, Schneider Electric will provide electricity to 80 million people by 2030 and train millions of underprivileged people by 2025.
c) Schneider’s Energy & Sustainability Services (ESS)
It helps customers and businesses in quantifying their CO2 emissions and tracking progress. Also, businesses can leverage the benefit of Schneider Electric Exchange, a platform for generating new innovative ideas for addressing the challenges of the energy ecosystem.
Challenges Toward Industrial Decarbonization
Industrial decarbonization faces numerous challenges, including:
- The high upfront costs of green technologies
- Integrating renewable energy into existing systems
- The development of carbon capture solutions
- Retraining the workforce, ensuring supply chain sustainability, and balancing economic growth with environmental goals.
Collaboration, innovation, and supportive policies are essential steps for overcoming these hurdles and achieving a sustainable, low-carbon industrial sector.
Where to Invest for industrial decarbonization
Investing in industrial decarbonization involves directing resources toward sustainable technologies and practices. Key areas include renewable energy adoption, energy-efficient processes, carbon capture, electrification, and circular economy initiatives. Moreover, funding research, innovation, and policy support in these realms can drive significant reductions in industrial carbon emissions, advancing both environmental goals and economic growth.
What is Decarbonization Technology?
Decarbonization technology refers to innovations aimed at reducing carbon emissions from various sources. It includes renewable energy, carbon capture, electrification, and efficiency improvements. Such technology plays a pivotal role in mitigating climate change by transitioning industries and systems toward low or zero carbon emissions.
Achieving Transformation of Industrial Sectors and Energy with Decarbonization Solutions
To achieve the transformation of industrial sectors and energy, it is imperative to make coordinated and collaborative efforts across the economy. Industries can prepare for decarbonization by reviewing their facilities thoroughly and collaborating with decarbonization companies leveraging services, strategies and technology. Besides, the inclusion and engagement of other stakeholders in finding opportunities for collaboration, such as co-investing in a carbon-storage infrastructure or supporting research and development for robust decarbonization technologies, can also be leveraged.
Conclusively, industrial companies can significantly lower their carbon emissions. Moreover, joint planning and timely action can accelerate the development of low-carbon or decarbonization technologies for industry, helping coordinate the robust transformation of the industrial sectors and energy.
The time for the transition of industrial companies has begun; the need of the hour is to collaborate and catch up the pace!