Decarbonisation Technology - February 2025 Issue

Optimising processes and integrating energy recovery systems to minimise waste and maximise output. Energy eciency

Replacing fossil fuels with low-carbon options like hydrogen, biofuels and synthetic fuels. Alternative fuels

Using low-carbon materials such as biobased polymers and advanced composites to reduce emissions. Material substitution

Eliminating waste through resource recovery, recycling and waste-to-value systems. Circularity

Capturing and reusing emissions as feedstocks for industrial applications. Circular carbon systems

Monetising emission reductions through carbon credits and oset schemes. Carbon markets

Removing CO through nature-based solutions like reforestation, soil carbon sequestration and direct air capture. Negative emission technologies

AI as an enabler

Enhancing eciency and accelerating decarbonisation through predictive analytics and optimisation.

Figure 1 Key carbon neutrality levers and technologies

political economy of global climate action and the likely withdrawal of the US from the Paris Agreement, the success of the European Green Deal is vital for global decarbonisation to stand a chance. From this global perspective, it should be recalled that the cost of climate action is far lower than the cost of inaction. How companies achieve their net-zero targets Reaching net-zero goals requires a clear, strategic approach that combines different solutions: • Deep decarbonisation by reducing emissions through technology and operational efficiencies. • Carbon removal, both within and beyond the value chain, to address emissions that cannot be eliminated. • Compensation through offsetting, which ensures residual emissions are balanced. Success depends on aligning financial resources with these strategies. Companies with lower capital may start with efficiency improvements, while those with more resources can invest in advanced technologies or explore new business opportunities. Businesses that approach carbon neutrality as a chance to grow and innovate rather than as a cost can meet their goals while creating long-term value. Key carbon neutrality levers and technologies Decarbonisation relies on a range of technologies

that address emissions reduction and removal across industries (see Figure 1 ). Energy efficiency is a foundational element in optimising industrial processes to reduce emissions. Transitioning to alternative fuels, such as renewable energy and biofuels, is equally critical. Substituting traditional materials with low-carbon alternatives further reduces embedded emissions. Digital technologies , including AI and advanced analytics, are instrumental in optimising resource use and enhancing decision-making across value chains. By leveraging data-driven insights, businesses can identify inefficiencies, streamline processes, and scale climate tech solutions more effectively. The integration of digital tools into decarbonisation strategies represents a vital step in future-proofing industries for a sustainable economy. Circularity is essential Circularity could deliver up to 45% of the global greenhouse gas (GHG) emissions reductions needed to achieve net-zero worldwide ( Ellen “ We need to shift from viewing carbon neutrality as a cost to seeing it as an opportunity for value creation ”