2024-01-22 08:48:15
Munich (ots) – The 1,000 most emission-intensive industrial plants worldwide belong to 406 companies and together emit around 8 gigatons of carbon dioxide (Gt CO2) annually. If these systems were completely decarbonized, around a third of the emissions reduction required by 2030 would already be achieved in order to achieve the Paris climate target of a maximum temperature increase of 1.5 degrees. The cost of this would be between $7.5 and $10.5 trillion, depending on the technology used. This is the result of the “Global Carbon Restructuring Plan” study, for which Roland Berger experts analyzed the world’s 1,000 largest emitters and identified options for their decarbonization and the associated costs.
Decarbonizing the world’s 1,000 largest emitters would bring regarding a third of the emissions reduction necessary for the 1.5 degree target. The cost would be $7.5 to $10.5 trillion, spread over 26 years. New study shows how one Reversal of the trend in global CO2 emissions can be achieved
To achieve the 1.5 degree target, the world must reduce its annual CO2 emissions by 24 gigatons by 2030, according to the Emissions Gap Report 2023. “The 1,000 industrial plants with the highest emissions alone emit 8 gigatons annually – a third of which require emissions reductions,” says Martin Hoyer, partner at Roland Berger. “More than half of this is accounted for by just 40 companies, and a full 160 companies are responsible for 80 percent. This shows the great climate protection potential of a concerted action to decarbonize these main emitters. With our study we wanted to identify the greatest levers to achieve maximum “To create momentum for global decarbonization efforts – across national borders and from the perspective of asset owners.”
There are various technology options for decarbonizing the systems under consideration, as the analysis shows: The spectrum ranges from switching to renewable energies, nuclear energy or natural gas to the capture of the carbon dioxide produced by the continued use of fossil energies and its storage (CCS). Depending on the decarbonization solution, there are different costs for complete decarbonization. Nuclear energy and the switch to gas are the most expensive options, each costing around $10.5 trillion over the period 2025 to 2050. This is followed by CCS at $10.3 trillion. The transition to renewable energy is the cheapest at $7.5 trillion. Spread over time, this would represent an annual cost of $0.3 to $0.4 trillion. In comparison, that would be less than 20 percent of global spending on research and development, for example (US$2.3 trillion) in 2021.
The vast majority of the production facilities analyzed come from energy production
The analysis by Roland Berger experts shows that over three quarters (77%) of the emissions in the top 1000 come from the electricity generation sector, 18 percent from iron and steel production and 3.5 percent from the oil and gas industry. Regionally, most of the 1,000 plants are located in China (54%) and India (13%), followed by the USA (10%) and Europe (3%). Due to this regionally unequal distribution, countries are affected very differently by the costs of decarbonization: China and India, for example, would have to spend between 18 and over 30 percent of their gross domestic product, the USA and Europe only between 2 and 5 percent.
“The 406 owners of the 1,000 systems we examined each have to analyze what options they have once morest the individual background of their environment and their specific markets,” says Hoyer. “They all face the same questions: Which technology is best? How to ensure security of supply? Where will the financial resources come from? Collaborations between government and business actors in the areas of technology and research and development might clearly demonstrate the potential and pace of decarbonization activities increase.”
The energy sector has some catching up to do when it comes to decarbonization
Commitment to the transition to green production varies by sector and region. Decarbonization plans are in place for only 11 percent of identified energy production sites. Europe is making the greatest progress here, with plans already in place for half of the European energy plants analyzed. In the USA, this is the case for almost a third (29%) of facilities. Among non-power assets, oil and gas companies are the most active, along with iron and steel companies.
You can download the full study here:
Roland Berger is the only strategy consultancy of European origin with a strong international presence. As an independent company, owned solely by our partners, we are present in all important markets with 51 offices. Our 3,000 employees are characterized by a unique combination of analytical thinking and an empathetic attitude. Driven by our values of entrepreneurship, excellence and empathy, we are convinced that business and society need a new, sustainable paradigm that takes the entire value chain into account. By working in cross-competency teams across all relevant industries and business functions, Roland Berger offers the best expertise worldwide to successfully master the profound challenges of our time today and tomorrow.
Questions & Contact:
Silvia Constanze Zösch
Senior Expert Corporate Communications & PR
Tel.: +49 160 744-8750
E-Mail: [email protected]
www.rolandberger.com
1705913678
#Roland #Berger #presents #Global #Carbon #Restructuring #Plan #decarbonize #largest #greenhouse #gas #emitters #PHOTO
