Utility companies around the world are making bold promises of achieving carbon neutrality by 2050. However, the pathway to net-zero isn’t without its challenges.
What is the best pathway to net-zero for utility corporations?
What should a corporation do now to facilitate the deep decarbonization needed to reach net-zero emissions by 2050?
The utilities sector is responsible for 26% of global emissions. Further, the Institute for Sustainable Futures explains the energy and utility sectors have to be the first movers to decarbonize energy on behalf of their customers, which will pave the way for them to reach their emissions reduction goals.
In this article, the GHG emissions management experts at SINAI explain what action utilities companies should take in order to make a positive impact on global warming by driving down their carbon emissions in less than 20 years. From capitalizing on the opportunities presented by a transitioning economy, and automating cost curves, to meaningful compensation for the remaining carbon emissions they emit, read on to gain insight into utilities companies’ optimal pathway to net-zero.
Capitalize on the opportunities of a transitioning economy
Utility companies can also boost their competitive advantage and benefit from heightened economic productivity as a result of innovative business models. Revenue from innovative business models based on the sharing or circular economy is projected to grow to $355 billion by 2025, increasing from today’s current $15 billion.
Lastly, make sure you are accessing all green financing available to you to help pay for tools that help combat climate change on a large-scale.
Automate cost curves
Utilities companies that go beyond emissions inventories and reporting have the potential to truly stand out as industry leaders when it comes to deep decarbonization by automating their cost curves while effortlessly moving in the direction of their net-zero targets.
The ability to generate automatic Marginal Abatement Cost (MAC) Curves together with Levelized Cost Curves makes it possible to develop dynamic scenario modeling as you work towards net-zero emissions. Compare and contrast marginal abatement costs of your corporation’s mitigations options across all of your business units in order to identify the most effective opportunities that will help your company become carbon neutral.
Financial & environmental impact modeling
Utilities companies who bring their Finance and Operations teams into the mix, not just their sustainability leaders, can benefit from bringing their carbon strategy directly into their business model. With an emphasis on intelligent data integration, you’ll be able to consolidate cash flows with carbon flows, with a firm grip on your greenhouse gas emissions across all of your departments.
By speaking the language of finance, you are able to bring carbon opportunities to the forefront of budget allocation, bolstering your corporation’s efforts in becoming carbon neutral through joined-up departmental collaboration.
Compensate for remaining emissions
To ensure your corporation is on the optimal carbon-neutral pathway, you’ll want to calculate and compare the monetary amount of mitigation options that might cost too much for your company to reduce internally. Using granular data and insight, your company’s remaining carbon emissions can be offset responsibly and efficiently.
By partnering with respected and renowned providers, like the American Carbon Registry, Gold Standard, The Nature Conservancy, and Verra, your corporation can compensate in a meaningful way for the remaining greenhouse gas emissions. Reaching net-zero emissions by 2050 won’t be easy. Still, with a dynamic plan in place that utilizes automation, your corporation can lead the way when it comes to addressing global warming purposefully and effectively.
Cost-effective technology roadmaps for utilities companies
The best path to net-zero for utilities companies is acknowledging the transitioning economy and taking the opportunities it presents along with building automated cost curves. Next-generation technology can help your corporation model your financial and environmental impact alongside each other while compensating for the remaining emissions you put out into the atmosphere.
SINAI Technologies has built cutting-edge and dynamic scenario assessment tools that make it easy for you to automate your company’s emissions calculations. Our tools support your corporation at any and every stage in your emissions management journey. We make it easy to measure, analyze, price and, reduce your corporation’s GHG emissions that keep your company on the right track towards reaching your long-term emissions reductions goals.
Unlike other emissions management products on the market, SINAI’s solution allows you to create tailored carbon pricing modules in order to consolidate your company’s environmental impact and make sense out of context data. Request a demo of our software today and see how SINAI can help your utility company seamlessly achieve net-zero emissions.
This post was originally published on Sinai Technologies