The benefits of decarbonization
To keep global warming to well below 2°C, worldwide power generation must be rapidly and deeply decarbonized. Power production is likewise responsible for a variety of environmental effects beyond greenhouse gas emissions.
The international community has committed to limiting global warming to below 2°C and achieving net greenhouse gas (GHG) emissions neutrality by the second half of the 21st century.
Electricity generation is the single greatest emitter of carbon dioxide, accounting for approximately 40% of worldwide energy-related CO2 emissions. It also has the largest potential for emission reductions at a low cost, making it an optimum scenario.
The outcomes of decarbonization for the world
Near-zero electricity sector emissions by mid-century are typical in cost-optimal strategies for limiting global warming to below 2°C, and they rely increasingly on electrification to cut fossil fuel use in transportation, industrial, and residential sectors.
We found that the shift to low-carbon power systems has significant co-benefits in a wide range of environmental impacts, especially those linked to human health, ecotoxicity, and fossil resource usage.
Deforestation and mineral resource depletion are made more severe in decarbonization pathways, which lends them to be key sustainability trade-offs with climate change mitigation. Our research shows that the scale and profile of co-benefits and adverse effects are strongly influenced by technology choice. Renewable energy technologies were found to have the greatest co-benefits.
Low-carbon development may result in $26 trillion in economic benefits globally by 2030, according to the New Climate Economy. There is still more work to be done in order to leverage the progress that has already been made in carbon pricing, energy efficiency, and renewable adoption.
After their firms committed to developing decarbonization goals, 84% of corporate executives reported that the brand reputation had improved. Consumers are more conscious of the influence their decisions can have on a sustainable future, so brand and reputation are significant.
Many mining firms are already incorporating decarbonization into their corporate policies and plans. These methods not only reduce CO2 emissions, but they also have the potential to save money by using cleaner, alternative fuels and more efficient equipment. The South African mining industry has prioritized energy conservation as a response to rising energy prices and deteriorating infrastructure.
The energy consumption of a mine is determined by its design-embedded, unchangeable infrastructure, which has older mines that have larger energy demands. Mines must identify and exploit all available energy-saving possibilities, such as reducing power consumption or using more efficient technologies.
Businesses that follow science-based goals may also benefit from tax breaks (carbon tax reduction due to a decrease in scope one emissions) or other fiscal incentives (contracts that need a net-zero strategy to be implemented within the company).
Benefits compared to the costs
Although there are initial costs to setting up the infrastructure required to generate renewable energy, its usage expenses are insignificant. This price dynamic has the ability to significantly alter mining’s cost basis. Energy is typically the first or second most important expenditure in traditional mining operations, accounting for 15 to 40% of operational expenditures.
For the mining sector, complete decarbonization of energy from nonrenewable resources to renewable sources should be considered a necessary condition for any meaningful progress toward decarbonization. The global renewable energy supply chain must also meet stringent criteria, including significant R&D investment to address shortages in energy storage and distribution technology.
Despite the fact that decarbonization schedules are different, it is clear that companies must consider the consequences of these pending policy decisions in their current strategic planning. Corporate decarbonization roadmaps should concentrate on lowering energy use and replacing existing energy usage with lower-carbon energy sources. The capture or storage of emissions is also necessary.