and safety, simplify trade processes, reduce carbon footprints, and stimulate innovation and investments. By providing clear guidelines for market entry, standards ensure compliance with international environmental agreements and avoid trade disputes while supporting the economic growth of developing countries. Obviously, agreed standards and certification systems are essential to facilitating the international trade of low or zero-carbon fuels (hydrogen, SAF, sustainable marine fuel), chemicals (ammonia, methanol) and products (steel, fertilisers). While carbon pricing is essential for transitioning to a low-carbon economy, it will lead to higher energy costs for consumers, particularly affecting low-income households and increasing the risk of energy poverty. For countries with carbon pricing, it should be fair to account for both the import and export of products in the pricing system (such as the EU Carbon Border Adjustment Mechanism). To mitigate these effects, governments need to implement complementary measures, such as: • Recycling revenues generated from carbon pricing to lower other taxes or fund social welfare programmes can help offset the increased energy costs for vulnerable populations. • Providing direct financial assistance, subsidies for energy-efficient appliances, or support for home insulation can help low-income households manage higher energy costs. • Expanding access to affordable clean energy sources in underserved communities can reduce long-term energy costs and improve energy security. Importance of multiple factors in global decarbonisation Decarbonisation is a complex process influenced simultaneously by a variety of interrelated factors. Economic factors are crucial as they drive investments in clean technologies and influence the affordability of transitioning to a low-carbon economy. Political factors shape the regulatory environment and can either accelerate or hinder progress through policy decisions. Inequitable global development underscores the necessity for equitable access to clean energy
solutions, ensuring all countries can participate in and benefit from decarbonisation efforts. The intermittency and inadequacy of renewable energy highlight technical challenges in ensuring a stable and sufficient supply of clean energy. Workforce development and education are essential for equipping people with the necessary skills for emerging green jobs and fostering a culture of sustainability. Hard-to- abate sectors present specific challenges due to their significant emissions and heavy reliance on fossil fuels, thus requiring innovative solutions for their decarbonisation. Lastly, carbon pricing is a critical tool for making the costs of carbon emissions explicit, incentivising reductions, and funding the transition to a greener economy. These factors underscore the multifaceted approach needed to achieve global decarbonisation goals. Since the economy of scale dictates that low-carbon alternatives are more expensive than their well-established fossil equivalent, carbon pricing will, by design, increase the costs of the fossil-derived products to achieve a fair and just transition. In closing, there is a need for governments to both drive the transition and support the sectors of society most at risk of energy poverty. “ The intermittency and inadequacy of renewable energy highlight technical challenges in ensuring a stable and sufficient supply of clean energy ”
VIEW REFERENCES
Bamrung Sungnoen bamrungs@scg.com
Wiwut Tanthapanichakoon wiwutt@scg.com Pongsatorn Anukulnaree Pongsatorn.anu@gmail.com
Khavinet Lourvanij khavinel@scg.com
Apinan Soottitantawat apinan.s@chula.ac.th
www.decarbonisationtechnology.com
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