Digital-first carbon management solutions could help Asia businesses get to net zero
AS THE world races towards net zero, Asia’s energy transition progress will be crucial given that it accounts for more than half of the global population and global greenhouse gas emissions. Businesses are now facing mounting pressure to assess how they can comply with new emissions regulations that are aligned with the 1.5 degrees Celsius targets under the 2015 Paris Agreement.
The decarbonisation journey varies across industries and companies of different sizes. Corporates consuming large amounts of energy usually start with transitioning towards low-carbon energy alternatives such as renewables. For small and medium-sized enterprises (SMEs) who may not be actively tracking their carbon footprint or have affordable access to renewable energy, the challenge to decarbonise may be more acute.
As stakeholders across the energy value chain convene for the Singapore International Energy Week (SIEW) 2023, we need to urgently address the elephant in the room – how can corporates and SMEs both access the necessary resources to kickstart and track their own net-zero journey?
Reaching net zero through carbon management solutions
Stricter emission regulations in tandem with national climate action pledges will entail companies having to track, abate, measure and report on their carbon emissions, which would include electricity consumption. However, as renewable energy access depends on several factors such as a country’s endowment, businesses in countries with limited renewable energy options, including Singapore, have one less avenue to abate their emissions.
While there have been recent technological advancements in carbon capture, usage and storage and low-carbon hydrogen production, these solutions are in the early stages of development or not commercially viable yet. Cross-border renewable energy imports and exports take time to be ready and are typically not immediate solutions. As such, any progress towards net zero today should first come from reducing emissions at the consumption source.
This is what carbon management solutions aim to solve – provide businesses with decarbonisation solutions that can be traced, authenticated, and reported. By employing readily available abatement solutions such as Renewable Energy Certificates (RECs), as well as the retirement and purchase of voluntary carbon credits, businesses can take immediate, actionable steps towards abating residual emissions and meeting their net-zero targets.
The power of technology and innovation
GoNetZero’s recent partnership with UBS, a leading global wealth manager, highlights how businesses can harness the power of digital technologies to enhance the effectiveness of carbon management solutions.
Leveraging blockchain technology to track granular issuance and retirement of RECs, GoNetZero and UBS successfully launched Asia’s first pilot of hourly matching of renewable energy generation and consumption. This unlocked insights on how UBS could reduce its carbon emissions, while establishing a strong case study on how transparency and traceability was achieved for the source and accounting of renewable energy. Since 2020, UBS has been able to certify the use of renewable energy for 100 per cent of its operations in Singapore.
For businesses that are looking to install rooftop solar panels on their premises for local consumption, carbon management solutions can further allow companies to derive energy generation and consumption insights through computing and data analytics.
These include solar potential assessment of rooftops using satellite imagery and solar irradiance forecasting for performance prediction, translating into actions to further optimise the generation yields from renewable energy assets. For example, GoNetZero is assisting a region-based supply chain and logistics solutions provider to optimise and scale the use of energy generation data from on-site solar panels, installed by Sembcorp Solar Singapore, to improve the tracking of its energy management system and dashboard.
The ability to accurately track and verify the retirement of RECs also strengthens the case for the establishment of RECs trading marketplaces, providing SMEs access to RECs for carbon abatement. There has been an increased interest from SMEs seeking manageable and cost-effective solutions, highlighting the viability of such right-sized marketplaces for smaller businesses looking to kickstart their decarbonisation journeys.
Decarbonisation opportunities through digital solutions
COP28 this year will see the first Global Stocktake on the progress made after the 2015 Paris Agreement at COP21. While unforeseen global events have hampered progress on the pledges made by world leaders, there remains optimism that we can still get back on track; new innovative tools are at hand and new policies have been implemented to facilitate the transition to net zero.
Businesses big and small have a crucial role to play in accelerating the decarbonisation of industries. Through the purposeful use of technology, customisable carbon management solutions can empower businesses to make meaningful contributions in their own net-zero journey.
The writer is CEO of GoNetZero, the carbon management business of Sembcorp Industries
