The need to tackle the climate crisis is more urgent than ever as, despite numerous decarbonisation targets, emissions continue to rise.
For businesses the measures needed to achieve these ambitions can seem both daunting and expensive. However, by working together and sharing ideas and investment, these dreams can become a reality to the benefit of the environment and businesses alike.
After years of talking, now is the time for action.
The last few years have seen a swathe of decarbonisation targets from companies and governments around the world. At COP26 in Glasgow late last year, a global drive to “phase down” burning coal as a source of energy was announced. Yet just a few months later, coal demand is surging as countries scrabble to find alternatives to Russian oil and gas.
The climate can’t afford any more delays and needs humans to act now to avoid catastrophic long-term consequences such as rising sea levels destroying low-lying populations and habitat and hotter weather leading to more drought and wildfires. However, while the potential devastation can feel like an unsurmountable challenge, solutions can still be found if companies and governments are willing to work together and share both intellect and resources.
Cross-Border Collaboration
Surging oil and gas prices so far this year have highlighted the need for the world to end its reliance on fossil fuels and optimise renewable energy sources, such as solar and wind. The technology is available now to boost renewable production but this energy transition requires considerable investment in the underlying networks and grid systems that currently supply the world’s electricity to ensure supply can reach demand. Just like emissions don’t stop at the border, access to green energy can’t afford to be restricted by national boundaries.
Progress is already being made on this front, with the globally endorsed Green Grids Initiative - One Sun, One World, One Grid. This partnership aims to build long-distance transmission lines to connect renewable energy generators and demand centres across continents, underpinned by mutually beneficial cross-border power trading arrangements.
Furthermore, there is a commitment to share ideas and expertise to achieve the partnership’s goal of ensuring “the sun becomes a secure and reliable source of energy for all, especially for the world’s underprivileged citizens”.
The energy sector is both one of the highest sources of emissions and one that has seen some of the biggest advances in affordable, carbon-free solutions. For other harder-to-abate sectors, such as transport, heavy industry and agriculture, sector coupling, in which different disciplines work together, will be key. Power-to-X solutions, green steel, green ammonia, and green hydrogen are prime examples of this. Indeed, hydrogen will play a critical role in the energy transition for sectors that cannot be decarbonised by electrification.
Demonstrating the power of collaboration in addressing these challenges, the shipping industry has proposed the IMO Maritime Research Fund, which will channel $5 billion towards zero-carbon technologies and fuels, as well as supporting developing countries with their decarbonisation goals. Working together as an industry will share the burden of finding scalable, long-term solutions to the benefit of all.
Global Alliance
As Sir David King warned back in 2004 when he was Chief Scientific Advisor for the UK government:
“We can only overcome this challenge by facing it together, shoulder to shoulder. If we do not begin now, more substantial, more disruptive, and more expensive change will be needed later on.”
These words appear not to have been heeded, with many businesses perhaps too concerned about protecting intellectual property from their competitors to consider cross-industry collaboration. On top of this, the scale of the task requires considerable capital outlay on projects that may ultimately prove unsuccessful.
While the One Sun initiative and R&D shipping fund seek to help decarbonise two key sectors, the Mission Possible Partnership aims to go further still by accelerating decarbonisation in seven of the highest emitting industrial sectors.
Bringing together CEOs and key figures from some of the world’s biggest companies and corporations, Mission Possible aims to demonstrate that zero-carbon value chains can work, even in sectors where this may appear impossible, such as concrete, steel and aviation, and encourage others to follow.
Crucially, the partnership is seeking action within this decade and has engendered support from all stakeholders, including financiers, customers and suppliers of these targeted industries.
These three examples illustrate the importance of pooling resources and intelligence and coming together across industries and the world to achieve the goal of decarbonisation.
Looking to the Future
As the IPCC said on the release of its latest report in April: “The evidence is clear: the time for action is now. We can halve emissions by 2030.”
“The decisions we make now can secure a liveable future. We have the tools and know-how required to limit warming,” said IPCC Chair Hoesung Lee. “There are policies, regulations and market instruments that are proving effective. If these are scaled up and applied more widely and equitably, they can support deep emissions reductions and stimulate innovation.”
Infrastructure must be in place to effectively utilise zero-carbon alternatives. Be that a grid system to move renewable energy to demand centres, or ports and terminals to store the new fuels.
Just as the negative impacts of emissions are borderless, efforts to decarbonise cannot stop at national frontiers. International cooperation is key.
Finally, everyone must be united. The decarbonisation message starts at the top with the CEO or head of state and flows down to the customer and the ultimate stakeholder, the planet. Set targets that can be achieved in the short-term and show meaningful progress before this decade is out.
Businesses failed to listen to Sir David’s warning 18 years ago, but his words proved prescient. The scale of the climate crisis today is greater, and both more disruptive and more expensive to solve.
There can be no excuses this time. The collective will is there to achieve meaningful change and avert climate disaster. Leadership isn’t about making bold statements; it is about backing those commitments up. Harness the power of partnerships to turn ambition into reality.
5 ways to form an effective decarbonization partnership
1. Network. Harness the power of your network and work together to find solutions specific to your industry
2. Infrastructure. While technological advancements are key, these technologies need to have the right infrastructure in place to work on. Don’t neglect infrastructure at the expense of tech.
3. Borderless. The climate crisis a global problem requiring global solutions. Cross-border and cross-continent as well as cross-sector partnerships are essential.
4. Scalable. The scale of the problem means that boutique, niche solutions aren’t enough. Collaborations increase the pool of resources, both financial and intellectual, to make bold, scalable solutions achievable.
5. Unity. Everyone must be pulling together both within the business itself as well as the organizations that business partners with.