Regulatory Shifts and Threat of Environmental Impact Drive Decarbonization Goals
This study explores the different steps toward achieving carbon neutrality, key drivers influencing the rising adopting of carbon neutrality initiatives, challenges that lie ahead, and major technologies that will drive innovation in this space. The convergence of transformational Mega Trends and disruptive technologies will result in new growth opportunities, including satellite imagery technology for climate impact identification, carbon capture and reuse technology for turning CO2 into new products and materials, and carbon footprint transparency to influence decision-making processes.
Key Issues Addressed
- What are the key factors driving the adoption of carbon neutral strategies?
- What are the current unmet needs and challenges industries face?
- What technologies can help organizations move toward carbon neutrality while gaining a competitive advantage?
- What are the key growth opportunities to watch out for in the next decade?
- What best practices can companies seeking to enter this space learn from incumbent players?
During the 2021 United Nations Climate Change Conference (COP26), the European Union and the United States announced their commitments to become carbon neutral by 2050, while China and India, the first- and third-largest emitters, plan to become carbon neutral by 2060 and 2070, respectively. Low-income countries will struggle to reduce their carbon footprint and meet their decarbonization goals because of the lack of regulatory frameworks, public and private investments, and technological advances. To meet their commitments to reduce greenhouse gas (GHG) emissions, most governments are taking stricter measures to reduce carbon emissions, with some introducing regulations, such as a carbon tax, that encourage companies to transform their supply chain to reduce their impact.
As renewable energy sources mature, global fossil fuel prices are rising. Renewable energy sources have a lower climate impact and are becoming cheaper, encouraging companies to choose green energy over traditional fossil fuels. Heavy industry players use energy-intensive manufacturing processes that generate high emissions. Carbon capture and reuse technology is a cost-effective solution to limit emissions by converting carbon dioxide (CO2) into more environment-friendly and cost-effective materials.
Among customers, environmental and climate concerns are more important than ever, and sustainability now competes with conventional factors, such as price and brand. Companies must transparently communicate their climate footprint and carbon reduction achievements to satisfy customers.
Looking ahead, deployment of emerging technologies such as satellite imagery will help corporations to better identify scope 3 emissions. Identifying scope 3 emissions is the biggest challenge for corporations as they do not control the activities that release carbon emissions. To gain a competitive advantage, corporations must transform carbon emissions into profits. Carbon capture and reuse technology emerges as a key cost-effective solution to transform CO2 into greener, cost-effective materials.
