Decarbonisation Technology - May 2024 Issue

worldwide in renewables and other transition- related technologies by 2030 (IRENA, 2022). Developing countries face challenges scaling renewable energy due to its intermittent nature, high upfront costs, and poor access to finance and technology. y Workforce development and education Transitioning to a low-carbon economy requires a workforce with new skills and expertise, including the installation and maintenance of renewable energy infrastructure, energy efficiency auditing, and more. Developing this workforce is a major undertaking that involves changes to education and training programmes. New technologies encompass renewable energy, energy storage, CCUS, electric vehicles, and smart grid technologies. A gap in skills and expertise in these areas can slow down their implementation, and not only limit the growth of these sectors but also miss an opportunity to provide employment and stimulate economic growth. Reforms in education and training programmes must ensure alignment with the needs of a low- carbon economy, such as designing new courses and programmes, adapting existing ones, and promoting lifelong learning and skills upgrading, as well as raising awareness about climate changes and actions by individuals to reduce their carbon footprint. In addition, it should involve creating opportunities for hands-on learning and experience, such as apprenticeships and internships in green industries. z Hard-to-abate sectors Hard-to-abate industrial sectors contribute a substantial portion of global GHG emissions, amounting to around 20% (IFC, 2023). Industries like steel, cement, and chemicals are notoriously hard to decarbonise. Along with heavy-duty transport, they contribute around 30% of GHG emissions today, with projections indicating a potential increase to 60% by mid- century as other sectors lower their emissions (Energy Transitions Commission, 2018). In steel production, coke is needed to remove oxygen from iron ore. For cement, a significant portion of emissions comes from the chemical process of turning limestone into clinkers. Some hope that hydrogen could replace carbon in

these processes, but the technology is still in development. In aviation, current battery technology does not allow for long-haul electric flights due to limitations in weight and energy density. While biofuels or synthetic fuels could help reduce emissions, they are currently expensive and can have other environmental impacts. Hydrogen is another potential alternative, but substantial challenges remain, including the need for new engine designs and large-scale hydrogen production and infrastructure. Similarly, the “ Hard-to-abate industrial sectors contribute a substantial portion of global GHG emissions, amounting to around 20% ” long distances and heavy loads involved in maritime shipping make it unfeasible to switch to electric power. Current stop-gap solutions include slow steaming (reducing speed to save fuel), improved hull design and engine efficiency, as well as the use of alternative fuels like biofuels, hydrogen, or derivative of hydrogen such as ammonia and methanol. However, each of these has its challenges and limitations. While not an energy-intensive industry, agriculture poses a significant source of emissions, particularly methane from rice paddy fields, livestock, and nitrous oxide from fertilisers. Solutions include water management in paddy fields, improved feed to reduce methane emissions from cattle, alternative farming practices to reduce fertiliser use, and human adoption of plant-based diets. However, these all face significant economic, cultural, and behavioural barriers. { Carbon pricing Carbon pricing, by design, artificially increases the costs of fossil fuel-derived products to reflect their environmental and social impacts, which are not accounted for in their market prices. This approach aims to internalise the external costs associated with GHG emissions, climate changes, and air pollution, making fossil fuels more expensive relative to cleaner energy sources. The rationale behind carbon pricing is