Government responsible for 63 percent of global emissions have pledged to net zero, with corporate net-zero responsibilities covering 12 percent of global income ($9.81 trillion).
However, huge discrepancies between targets & actual emissions are not uncommon, especially when effective emission reduction progress is required. When the G7 voted in June 2021 to make climate disclosure mandatory, 7 of the world’s most powerful economies acknowledged that carbon monitoring and disclosure will be critical to meeting emission reduction commitments.
Setting a goal is only the first phase; the next is to understand the actual emission baseline. Next, the strategy for reducing emissions must be defined. Finally, near-real-time tracking of targets and progress is required. To attain net zero, countries and businesses must monitor, reduce, and in certain cases, offset their emissions.
For beginners, the path can be difficult, time-consuming, and error-prone. That shouldn’t stop businesses from decarbonizing. Besides satisfying customers and political leaders, going to net zero may also be economically beneficial, as those resisting the energy revolution will have difficulty accessing financing. Earlier net-zero movers will also have a substantial financial edge above laggards as ‘carbon tax’ and ‘cap-and-trade’ programmes become more plausible.
Process Of Reducing CO2
Carbon management is divided into three categories: measurement, reduction, and offsetting.
1. Reporting Carbon Footprint
The very first objective was to measure CO2. The carbon reporting procedure collects CO2 data by emissions type and geography. It is then compared to worldwide carbon accounting standards like GHG standard or ISO 14064-1. In the current state, emission data can be gathered via metre readings or other methods such as mass balance or stoichiometry (calculating reactant in chemical reactions). The tedious data gathering procedure, difficulty assessing carbon footprints across product lines and assets, and validating basic assumptions of emissions are common challenges.
2. Abatement Management
Identifying important emission sources and reducing them is part of abatement planning. Identifying and measuring the operations that release the most CO2 allows organisations to optimise their carbon-reduction strategy. Abatement roadmaps set targets and KPIs for reducing emissions by modifying emission-intensive processes and introducing new technologies. The process might be unclear and complex due to the numerous variables that must be addressed. It is also difficult to track the effectiveness of abatement programmes. Uncertainty over the marginal cost-benefit of remediation programmes, and a shortage of staff to manage the process.
3. Neutralizing CO2
After exhausting all mitigation and decarbonization options, carbon offsetting is the last resort. It’s a technique of compensating everyone else to decrease or absorb CO2 emissions. Carbon offsets include environmental projects including reforestation, carbon capture technologies, & renewable energy production. Carbon credits are quantifiable emission reductions used by governments and businesses to offset carbon dioxide emissions. Other options include using RECs to offset non-renewable energy consumption. But offsets have their own set of issues, from measurement to openness and verification to commerce.
Innovating Against Climate Change
Some of the issues related with carbon management can be addressed with AIoT technology. Carbon management must become more efficient, transparent, and successful in three ways.
1. AIoT – Measuring And Reporting
The labour required to categorise and organise data from many corporate units and assets is significant. AIoT integration allows for easy access to real-time activity and asset data from several platforms. This allows an organisation to organise, gather, and report data efficiently, lowering overall data collection efforts and improving data quality & report resolution.
2. Predictive Analytics To Model Emissions Over Time
Planning for emission reductions is difficult due to a lack of precise emission measurements. AIoT technology solves this problem by analysing real-time data to predict process emissions. AIoT can improve emissions forecasting and performance evaluation by analysing & learning from data from numerous operations. This technique optimises abatement strategies while lowering marginal abatement costs.
3. Offsets And Integration
Although a last option, the carbon credit market is expected to reach $15 billion by 2050. However, carbon offsetting verification and trading are problematic. Technology can validate RECs in near true and provide a marketplace for low-cost carbon offsets. Assembling a worldwide pool of the offsets would reduce administrative burden and optimise the timing of REC buy-ins and retirements.
Carbon reduction solutions are required by the G7 to disclose climate risk. More crucially, they enable governments and corporations to actively control and reduce carbon emissions, achieving net-zero goals. Carbon management systems will be part of reducing emissions due to strong political, social, and economic agendas. Real-time measurement, mitigation, & offset integration will enable companies achieve net-zero targets transparently.