ClimateSeed Blog

"Decarbonization: What is it and how can companies achieve it?"

Written by ClimateSeed | October 10, 2024 at 9:20 AM

 

Decarbonization is at the heart of environmental and energy policies. It represents a set of actions aimed at reducing carbon emissions, mainly in the form of carbon dioxide (CO₂), to mitigate climate change. In this article, we will explore in depth what decarbonisation is, why it is crucial for businesses and what solutions are available to them. To find out more about how to decarbonise your business, please contact us.

 

1. What exactly is decarbonization and why should companies care?

Decarbonisation involves reducing carbon emissions into the atmosphere. This process requires changes in industrial, energy and consumption practices in order to reduce CO₂ emissions. The ultimate goal is to achieve a low-carbon economy, or even carbon neutrality. For a company, decarbonising its business means implementing various measures and techniques to reduce its carbon footprint. It is crucial for businesses to commit to this approach as they play a major role as significant contributors to CO₂ emissions and as key players in the transition to a sustainable economy.

Decarbonisation is essential if we are to limit global warming to 1.5°C, in line with the Paris agreements. It involves not only improving energy efficiency, but also adopting renewable energy sources, capturing and storing carbon, and changing consumer behaviour.

2. What are the challenges of decarbonization? 


Climate change is an alarming reality. According to the Intergovernmental Panel on Climate Change (IPCC), greenhouse gas emissions have reached record levels. If we do not take drastic measures, the average global temperature could rise by more than 3°C by 2100.

To reach the goal of zero net CO₂ emissions by 2050, set by many countries and organizations, it is imperative to reduce emissions significantly. This includes transforming energy systems, decarbonizing heavy industries, and promoting clean technologies.

3. What are the benefits of decarbonization for companies? 

In an increasingly urgent climate context and an economic environment where sensitivity to environmental issues is growing among customers and investors alike, these factors influence not only individual awareness but also corporate decisions. Moreover, measuring and reducing carbon footprints has become essential, prompting companies to integrate sustainable strategies into their operations.

The benefits of decarbonization for a company are manifold:

  • Comply with existing regulations and anticipate future ones: Environmental regulations are becoming increasingly stringent. By getting ahead of the game, companies can avoid future sanctions.

  • Reducing costs: For example, improving energy efficiency and using renewable energies can reduce costs in the long term.

  • Improved brand image: Consumers are increasingly aware of the environmental impact of the products they buy. Companies that adopt sustainable practices can benefit from a positive brand image.

  • Raising awareness and attracting new talent: Awareness leads to action. By carrying out your carbon footprint, you encourage others to do the same, and prove to them that reduction measures exist and can be taken. Acting for the climate is also a way of attracting new talent: the younger generation is very sensitive to these issues and will tend to choose the company they work for on the basis of this environmental criterion.

Discover in this article 6 good reasons to measure your company's carbon footprint

4. What are the main sectors affected by decarbonization? 

The most polluting sectors include:

  • The energy industry: Fossil-fuel power generation is a major source of CO₂.
  • Transportation: combustion-powered vehicles are responsible for a large proportion of CO₂ emissions.
  • Manufacturing: Industrial processes, particularly in metallurgy and cement, are highly energy-intensive.
  • Agriculture: Agricultural production, particularly livestock farming, generates significant emissions of methane, a powerful greenhouse gas.

These sectors need to adopt clean technologies and sustainable practices to reduce their environmental impact.

5. What are the main solutions for decarbonizing? 

To reduce its environmental impact and contribute to the fight against climate change, a company has a number of options for decarbonizing its activities, from carrying out a carbon footprint to participating in climate contribution projects.

Calculating your carbon footprint

The carbon footprint is a method for assessing a company's greenhouse gas (GHG) emissions. It measures the company's carbon footprint and identifies the main sources of emissions. By understanding this footprint, companies can implement effective reduction strategies. Once the carbon footprint has been finalized, ClimateSeed, with the help of its specialized consultants, analyzes it to determine reduction priorities, i.e. to identify the most relevant actions to reduce GHG emissions. These action levers enable us to develop a concrete and effective reduction plan.

Participate in climate contribution projects

Climate contribution projects aim to offset unavoidable emissions by funding initiatives that reduce or capture CO₂, such as reforestation, renewable energy or carbon capture and storage technologies. ClimateSeed offers high-quality carbon sequestration and avoidance projects that generate carbon credits. 

Each ClimateSeed project is selected and qualified by our team of experts, and undergoes a rigorous process based on its climate impact and potential social and environmental benefits.

6. Why should you work with ClimateSeed to decarbonize your business? 

ClimateSeed can help you measure and reduce your carbon footprint (GHG assessment) in order to decarbonize your business. We provide a software and consulting to measure and reduce your carbon footprint in line with GHG accounting standards (GHG Protocol and BEGES) and scientific objectives (SBTi). In addition to our platform, our low-carbon strategy experts can guide you through the process. ClimateSeed also offers climate contribution projects to maximize positive environmental and social impacts while minimizing risks. 
Since our launch in 2018, 200 organizations have placed their trust in us. 

Measuring your carbon footprint is the first step to a successful environmental approach. 

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