Simas Abraskevicius, digital ambassador at Eusew, explains how decarbonisation in businesses is important to achieving sustainability goals and how it contributes to economic growth.
“Through my career in sustainability, I have witnessed how companies can turn companies into agile, visionary leaders,” he said.
“This journey doesn’t just meet regulatory requirements. It’s about embracing innovation, energizing your team and unlocking competitive growth.”
What is decarbonisation in businesses? Why is it important?
Decarbonization of companies involves reducing greenhouse gas emissions across the company’s value chain, from energy use in production and logistics to product design and supply chain management.
This transition is essential to meeting international climate commitments, such as those outlined in the Paris Agreement. Thus, global emissions have been steadily progressing by 2030, falling by about 45% from the 2010 level.
For example, consider the heavy industry sector, which accounts for almost 20% of global emissions. Companies are expected to reduce emissions by approximately 50% over the next decade.
Decarbonization has already begun in sectors such as Tech and Finance, but industries such as steel and cement continue to face challenges, including high capital costs, technological constraints and complex supply chain issues that highlight the scale and complexity of this transformation.
How can businesses decarbonize?
There is no perfect approach to decarbonisation for every size. Companies need to adjust their strategies to suit operational reality.
To achieve meaningful progress, organizations are investigating a variety of measures to address unique challenges, taking advantage of the opportunities available.
Energy Efficiency Upgrade
In my experience, optimizing energy usage through systematic upgrades is one of the most effective strategies. Modernizing equipment, streamlining operational processes, deploying innovative energy management systems Monitoring and reducing consumption in real time are one of the key levers companies rely on.
Many organizations have observed efficiency improvements of up to 20-30%, which not only reduces emissions but also significantly reduces costs. These initiatives are consistent with best practices recommended by Global Energy Agency and sustainability experts, reinforcing their pivotal role in the transition to a low-carbon economy.
Transition to renewable energy
Moving towards renewable energy sources is another cornerstone of corporate decarbonization.
Organizations can source power from clean sources via GOS (guaranteed origin) mechanisms and invest in renewable installations in the field, such as solar panels and wind turbines. This transition not only reduces dependence on fossil fuels, but also provides a buffer for energy market volatility.
Such efforts are important to reduce the carbon strength of operations and are widely approved by major sustainability frameworks.
Redesigning innovative technologies and processes
Adopting digitalization, automation, and emerging technologies is essential for redesigning production processes to minimize emissions.
Companies integrate advanced data analytics, simulate and optimize production using digital twin technology, and explore cutting-edge solutions such as carbon capture and storage (CCS).
These advances in technology allow for accurate monitoring and control of emissions, increasing overall operational resilience and efficiency, and establishing businesses as the forefront of the sustainable industrial revolution.
These strategies will enhance the industry’s competitiveness by reducing operational costs over time and maintaining businesses as leaders in the low-carbon economy.
However, many companies are reluctant to fully embrace these measures. Financial constraints, short-term profit pressures, and critical upfront investments needed for new technologies often serve as barriers.
Additionally, it can be challenging to integrate innovative solutions into legacy systems and navigate complex global supply chains. Regulatory uncertainty and the lack of unified policy incentives in some regions further complicate the transition.
The future of decarbonisation: a future perspective
Decarbonization is poised to rebuild industries in ways reminiscent of the Industrial Revolution. The integration of advanced digital technologies such as artificial intelligence, blockchain for energy trading, and smart grids, along with a focus on renewable energy, will drive unprecedented improvements in energy efficiency and industrial productivity.
Going forward, policy support, innovative funding mechanisms and convergence of public-private partnerships will accelerate the transition to a net-zero economy.
For example, European green trading has outlined an ambitious target of reducing emissions by at least 55% by 2030, increasing regulatory momentum. Companies that adopt decarbonisation not only contribute to global sustainability goals, but also gain a competitive advantage in markets where both regulatory frameworks and consumer expectations are increasingly supportive of sustainable practices.
With the right combination of technology, strategy and policy alignment, corporate decarbonization evolves from a compliance obligation to a strong catalyst for economic growth and environmental leadership.
reference
European Commission Guidelines IPCC (2018), 1.5°C International Energy Agency (IEA) (2021) Special Report on Global Warming, Net Zero Report through 2050
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