We discussed the different carbon dioxide removal technologies that can solve climate change in our previous article, but today let’s circle in on one of the main sources of carbon emissions and how we can change internal and external systems to prevent from releasing carbon emissions profusely.

The UN Environment Programme has released its 2022 Emissions Gap Report indicating that the projected emissions gap by 2030 is at 58 gigatons of Carbon Dioxide. Referring to UNEP’s definition of emissions gap, it is determined by the difference between the estimated total greenhouse gas emissions stemming from the full collective implementation of nationally determined contributions (NDCs) and the total greenhouse gas emissions from cost-effective scenarios that keep the global temperature within 2˚ C, 1.8˚ C or 1.5˚ C (2022). To overcome the emissions gap, UNEP is urging for a rapid and large-scale transformation of 4 major sectors that highly contribute to carbon emissions: electricity supply, industry, transportation, and buildings.

In one of our previous posts, we have already tacked greening electricity to combat climate change, but for the industrial sector, what would be our way forward to cutting carbon emissions?

According to Our World In Data (2020), energy use by industries constitutes a 24.2% share of global greenhouse gas emissions, with the following industries contributing largely – iron and steel (7.2%), chemical and petrochemical (3.6%), food and tobacco (1%), non-ferrous materials (0.7%), paper and pulp (0.6%), and machinery (0.5%). Direct industrial process, which by definition acknowledges GHG emissions as a byproduct of the production process, contributes a share of 5.2%. Cement and chemicals are materials that are known to release greenhouse gases as part of their production. With the amount of emissions coming from the industrial sector, the UN has included this sector as part of its Sustainable Development Goals (SDG). SDG 9 focuses on Industries, Innovation, and Infrastructures. One of the targets under this goal is that there must be an advancement in infrastructure and retrofitting of industries to make them sustainable. So, how can companies transition to zero emissions in their operations and end products?

Tackling Scopes 1-3 Greenhouse Gas Emissions

The industrial sector is heavy on greenhouse gas emissions and knowing where they are derived is essential to help transition into zero emissions. Scope 1, 2, and 3 emissions help identify the agents of these emissions.

The Greenhouse Gas Protocol established a uniform framework for quantifying and controlling greenhouse gas (GHG) emissions across private and public sector operations, value chains, and mitigation efforts. Scope 1 Emissions are direct emissions from the operational procedures of a company, such as running a machine to manufacture products. Scope 2 Emissions are indirect emissions created by the production of the energy that a company purchases, such as emissions from fossil-fuel-sourced energy. Scope 3 Emissions refer to indirect emissions originating from sources that are owned or operated by external entities within the supply chain. These are categorized into upstream and downstream activities. Upstream activities refer to emissions derived from acquiring goods and services which also include capital goods, transportation and distribution, waste generated in operations, and leased assets, among others. Downstream activities are emissions derived from sold goods and services, such as the use of sold products, end-of-life treatment of sold products, and franchises, among others (GHG Protocol, 2013). Figure 1.1 illustrates the differences between Scope 1-3 emissions.

Figure 1.1. Scope 1, 2, and 3 Emissions Classification

Scope 1 and 2 emissions can be solved through straightforward solutions such as integrating carbon capture and storage technology in the operations to reduce emissions from manufacturing and transitioning from fossil fuel to renewable energy to power machinery. These may entail heavy investment on the part of industries, but these can help industries in the foreseeable future as carbon credits coming from the use of CCS technology can be traded to offset operational costs and as fossil fuel prices increase over time due to scarcity.

Reducing Scope 3 emissions will entail the active involvement of all stakeholders, including suppliers and customers. There are three 3 ways cited to help decrease Scope 3 emissions:

1. Circular Economy Implementation

We might have heard this concept, but what does this actually mean? A circular economy involves prolonging the use of resources to avoid wastage and designing products that can be reused or recycled for manufacturing. A practical application of the circular economy is through a supply chain with a closed-loop system. In a closed-loop system, recycling practices for resources and waste reduction processes are implemented to thwart waste, pollution, and carbon emissions. The illustration below depicts how a closed-loop supply chain operates:

Figure 1.2. Circular Supply Chain Illustration

IKEA is an example of an enterprise that employs a circular economy. The principles behind its circular economy include:

A circular product design that is destined for recyclability, remanufacturing, and reparations, among others.
The use of renewable and recycled materials for furniture and initiating its deployment by 2030 across all products.
Integrating circular services to help repurpose and extend products’ shelf life, such as purchasing and reselling used furniture and ordering assembly parts for existing furniture.

Customer cooperation is also essential in a circular economy through participation in product recycling initiatives such as incentive programs for returning used products or packaging materials and acknowledging the solvable wear-and-tear of products in order to cut down waste.

2. Waste Reduction Methods

According to World Economic Forum (2022), human waste contributes 3.3% of global greenhouse gas emissions and driving down waste can slash global methane emissions by 13%. In relation to IKEA’s circular product design concept, another way of reducing product waste is through developing products that can be compostable or can be used to create new products.

Compostable products are designed to break down into organic matter or turn into nutrients for the soil under specific composting conditions. Unlike biodegradable products that can degrade naturally over time, compostable products must meet specific standards and certifications before they can be processed in composting facilities and become useful. These products are made of paper, bamboo, wheat straw fibre, bioplastics, and cardboard.

While upcycling can be done through personal practices, partnering with upcycling service providers can help scale the consumption of used goods. Global Ecobrick Alliance is a not-for-profit organization that accelerates local and global plastic transition through ecobricking (n.d.). Ecobrick is a coined term for plastic sequestration into a plastic bottle to create a reusable building block. The organization collects bottles of plastic pieces through their GoBrick program and will use these to build modular units, lego furniture, and green spaces such as benches and planters.

3. Stakeholders’ Sustainable Endeavours

Companies can encourage third-party suppliers to adopt sustainable practices, optimize transportation routes, and improve energy consumption with the distribution of goods. For assets leased by the company, management can employ a selection criterion for properties based on green certifications and applying energy-efficient technologies and practices can help reduce emissions.

Scope 3 emissions are typically the most challenging emissions category for many industries. However, addressing scope 3 emissions is crucial for a comprehensive approach to reducing the overall environmental impact of the industrial sector and achieving sustainability goals.

In conclusion, achieving a net-zero transformation in the industrial sector requires a concerted effort and collaboration among stakeholders. But the benefits of this net-zero transition outweigh the inconveniences as it not only aligns with global climate goals but also presents opportunities for enhanced operational efficiency, innovative products and solutions, and, more importantly, a positive impact on the environment. GreenEco Investments is here to support industries that want to initiate a net-zero transformation. Let us help you implement solutions tailored to the challenges of carbon emissions so we can pave the way for a sustainable and prosperous future where we thrive while contributing to a greener and more resilient world.