What will it take to make strides toward decarbonization for industrial sectors? Significant investment and coordinated effort among businesses, governments, and other stakeholders, to start.
Decarbonization, which can be a confusing term, means the reduction of carbon compound gases during processes during industrial and environmental processes. For example, trees give off carbon dioxide (CO2) at night and produce oxygen during the day. Cows produce methane as a by product of digestion. Industrial production process gives off CO2 and other greenhouse gases as waste products. When the Paris Agreement of 2015 set greenhouse gas reduction targets of 80-95%, it was with the explicit understanding that industry has a giant role in meeting the target.
While this article focuses on activities that four specific industries could undertake, other sectors would do well to take note. The suite of approaches described,
- improvement of energy efficiency
- carbon sequestration
- renewable energy
- and use of biomass to generate energy
necessitate the creation of partnerships of stakeholders and cooperation across sectors.
Some companies may find it difficult to navigate the creation and oversight of such relationships as they probably fall outside of the usual supply chain, community relations and corporate responsibility realms. Instead, the focus will be on the systems needed to decarbonize which will bring a host of different players to the table.
If your company is grappling with these kinds of issues, give us a call. We’re here to help.
Read the full article at: www.mckinsey.com