We, as individuals, have real power in accelerating our low carbon future through our personal consumer choices and being an active and informed voice in our communities
The "hard to abate" challenge
Let’s look at what are known as “hard to abate” emissions. Industrial emissions globally account for ~40% of overall greenhouse gas emissions on an annual basis. Industrial products are the cornerstone of our society- they include the steel in our cars, the cement in our buildings and the plastics in our consumer goods. If you add in the transport industry, which is necessary to get all of these goods and materials to us by truck, ship and air, the total goes to 50% of total global emissions.
The good news is that a number of cutting edge industrial companies, known as First Movers, are committing to the production of the low carbon materials that will be the building blocks for our net zero industrial future. Net zero steel, aluminum, chemicals, and low carbon fuels are entering the marketplace.
While encouraging, we are at an early and vulnerable stage in the transition. Producing these green products does not happen just by flipping a switch at the factory. In many cases, newer processes need to be implemented at the factory level. In other cases, such as with the cement and concrete industry, new technologies altogether are being developed to supplant traditional carbon intensive processes.
Another factor is the energy requirements for manufacturing. Many industrial processes are driven by traditional fossil fuels, so low carbon options, such as renewables, nuclear and even emerging clean hydrogen sources need to be brought in to truly get to net zero. Many industrial front runners are also investing in carbon capture on the back end of more traditional processes to achieve net zero.
Overcoming the "green premium"
As you might be anticipating, the incorporation of these clean manufacturing and energy processes adds what is known as a “Green Premium” to the cost of these low carbon materials.
While many organizations are focused on eliminating the green premium in the long term, consumers as early adopters can help create positive market signals for the first movers who are making the initial investments in low carbon products and materials.
Consumer demand can have a viral effect. Not only does it encourage more green products in the marketplace, but the act of producing these at larger and larger scales acts as a positive feedback loop to continually reduce the costs of the clean energy and alternative manufacturing equipment needed to drive the overall green manufacturing value chain.
Is there green steel in my new car? Are there incentives for low carbon concrete in my community for new building construction? Is my community effective at Aluminum recycling? Is my next flight utilizing sustainable aviation fuel (SAF) to help offset emissions? You may be surprised at the answers.
Future blogs will bring views into the innovative technologies and industry initiatives that are building our low carbon future.