Navigating the Path to Net-Zero: Strategies, Challenges, and Future Possibilities
exploring what net-zero means, how are we moving forward to a net-zero future and different applications including net zero lumber and zero waste startups, net zero steel and cement and net zero materials.
Carbon Neutral vs Net-Zero
Carbon Neutral refers to balancing out the total amount of carbon emissions. This means that an activity releases net-zero carbon emissions into the atmosphere. This include offsetting carbon emissions with carbon credits or other means. It does not necessarily require the removal of other greenhouse gases.
Net Zero on the other hand, refers to the amount of greenhouse gases (GHGs) being emitted into the atmosphere, such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and other hydrofluorocarbons. It goes beyond the removal of just carbon emissions as it requires the neutralization of all greenhouse gases, not only carbon alone.
Achieving Net-Zero
Shifting to net-zero requires the reduction of greenhouse gas (GHG) emissions across the entire value chain, including the impact of products and services and supply chain.
But what does this look like?
- Net-zero means cutting GHG emissions as close to 0 as possible, with any remaining emissions re-absorbed from the atmosphere.GHG emissions reductions is aligned with the latest science and increasing the capacity for GHG removals.
- Replace processes to the most sustainable options. To achieve net-zero, companies must pursue a mix of climate-positive actions, including investing in and accelerating innovation, partnering with others, advancing public policy that enables and accelerates progress towards net-zero, and engaging with bodies such as trade associations to achieve this objective. Companies must also report and disclose progress towards net-zero transformation to key stakeholders, including investors, customers, consumers, and regulators. The transition to net-zero will create and destroy value across companies, and supply and demand will shift, with mismatches along the way.
- Repurpose CO2 or recycle CO2.
While considering the economic impact, there are definitely both positives and negatives outcome when it comes to a net-zero future, and is not an easy shift that doesn’t come with impact and costs…
According to a McKinsey report:
The transformation of the global economy needed to achieve net-zero emissions by 2050 would be universal and significant, requiring $9.2 trillion in annual average spending on physical assets, $3.5 trillion more than today. To put it in comparable terms, that increase is equivalent to half of global corporate profits and one-quarter of total tax revenue in 2020.
Net-Zero Steel & Net-Zero Cement?
Cement production is one of the highest-emitting industrial sectors, responsible for about 6 to 7 % of global CO₂ emissions. About 40 % of the emissions derives from the fossil-fuel combustion used to power the pre-calciners and kilns in cement plants, the rest stems from a chemical reaction inherent in cement making.
Net zero cement refers to the production of cement with net-zero carbon emissions. Cement production is a significant contributor to global carbon emissions, accounting for 8% of annual emissions. The cement industry has set a goal to achieve net-zero carbon emissions by 2050. To achieve this goal, the industry is investing in innovation and decarbonization measures to reduce carbon emissions from cement production. The industry is also exploring alternative materials and fuels to reduce carbon emissions.
ConcreteZero is a global initiative that brings together pioneering organizations to create a global market for net-zero concrete.
Businesses that join ConcreteZero commit to using 100% net-zero concrete by 2050, with two ambitious targets of using 30% low emission concrete by 2025 and 50% by 2030.
Net zero steel is the production of steel with net-zero carbon emissions. The steel industry is a significant contributor to global carbon emissions, accounting for 7–9% of annual emissions.
SteelZero is a global initiative that brings together leading organizations to speed up the transition to a net-zero steel industry. The initiative aims to create demand for net-zero steel and accelerate the transition to a low-carbon future. Swiss Green Steel is a product of Swiss Steel Group that is produced by recycling steel scrap and reprocessing it using low carbon and renewable energy. The company processes 2 million tons of steel scrap per year and offers customized solutions to help shape many industries on the road to more sustainability. Swiss Steel Group aims to become a global leader for green steel by reducing its environmental footprint and empowering all its customers.
The Future…
The transition toward net-zero must be approached in a just manner, especially for workers tied to high-carbon industries, and the costs and benefits of transitioning to a net-zero emissions economy must be distributed equitably. The good news is that most of the technologies needed to unlock net-zero are already there and increasingly cost-competitive with high-carbon alternatives. However, the economic transformation required to achieve net-zero emissions by 2050, which is a goal for us, will be massive in scale and complex in execution as it is very expensive, as shown through the McKinsey report.
Governments, businesses, and individuals must collaborate and take action to support the transition, of which many startups in the space like SteelZero has been working towards a future of net-zero.
