Net Zero 50

and ultimately consigning them to a transition too slow for our climate goals, now is the moment to work with these businesses to understand their pains and deliver alternative solutions that make sense for them.

Smoothing the road to hydrogen adoption

Further work is needed to make hydrogen supplies secure and truly sustainable. Firstly, not all hydrogen is produced the same way. As of 2019, the majority of hydrogen was generated using fossil fuels. Grey hydrogen, for example, is created using non-renewable energy sources and gives off carbon emissions, while blue hydrogen generation captures these emissions to decrease environmental impact. Green hydrogen, as will be created by the Glasgow project, is produced using electrolysis to split water into hydrogen and oxygen, leveraging renewable energy to do so. But with so much complexity and uncertainty around the production — and therefore the secure availability — of greener fuels, investing in the infrastructure for a single fuel source presents a high risk to businesses. Companies need to be assured that they can get a long-term and reliable supply of their chosen type of hydrogen or alternative renewable fuel.

Due to the diesel generator being so good at the job it was designed for, and the transition to a greener alternative such as hydrogen being a precarious decision, industries currently face a chicken-andegg scenario. Most energy providers don’t have the incentive to increase green hydrogen production when businesses aren’t ready to buy it, but without a reliable supply, business aren’t investing in power generation assets that have demand for those fuels. This will continue to undermine the progress we are making with wind, solar and energy storage. So, what can be done to further the progression towards a truly net-zero energy system for all businesses?

How can we turn aspirations into reality?

Fuel agnostic generators offer a way of providing onsite, dispatchable power without the risks presented by renewable fuel supply issues, enabling businesses to transition away from diesel sooner. These generators utilise a varying combination of fuels to produce the necessary power and switch between sources to ensure they use whichever is the most reliably available at the time – thus reducing the reliance on fossil fuels. Without this adaptability, companies will understandably continue purchasing diesel generators with the intention of running them for their lifespan, delaying the transition to more sustainable fuels for up to ten years at a time. The diesel generator has delivered a one-stop solution for companies no matter their power requirements or location. Now as the transition to a more complex and distributed energy system continues — with hydrogen, wind, solar, and other sustainable fuels — procuring a renewable power solution for business needs is also becoming increasingly complex. For example, a construction company with many sites across the UK or a delivery company with multiple depots require a solution for those cases where wind and solar are not practical or economically feasible. Because of these scenarios, committing to the removal of all diesel generators from construction sites or implementing 100% net-zero power generation isn’t possible. What fuel-agnostic generators offer therefore is another feather in companies’ cap, joining a suite of renewable energy technologies that can deliver netzero power requirements in all circumstances. Although energy security has presented challenges to the adoption of more sustainable fuels, being empowered to seamlessly change between sources will allow businesses to move forwards with their green initiatives. To deliver this vision and achieve a net-zero combination of hydrogen and other renewables as needed, there is a growing pressure for industries, energy suppliers, and technology providers to unite their efforts and help the market mature. Only then do we have all the components needed for a net-zero energy system that can provide power exactly when and where a business needs it.

Find out more about IPG’s work on flameless generator technology at ipg.energy.

TOBY GILL

CEO, IPG

ipg.energy

BiU

hello@biu.com biu.com

RISING TO THE CHALLENGE OF SCOPE 3 EMISSIONS

The Greenhouse Gas (GHG) emissions in your value chain are often the most difficult to measure and control, but they are a crucial part of any credible net zero strategy. Phil Richards at BiU explains.

UK businesses are becoming increasingly aware of the importance of Scope 3 emissions within a net zero strategy and for setting any associated science-based targets. They are the GHGs that come from sources connected to a business, such as suppliers, service providers and distributors, rather than directly from the business itself. That’s why they’re often known as “value chain emissions”.

Why Scope 3 matters

Scope 3 emissions make up a surprisingly high percentage of total emissions for many businesses and depending on the nature of the business, are often the largest portion of the total. When food giant Kraft mapped out the sources of its own emissions, it found that over 90% of total emissions associated with the company were under Scope 3. This isn’t untypical; the best estimates place Scope 3 emissions somewhere between 80% and 97% of total emissions for a large business. So, while many businesses do focus solely on Scope 1 and 2, this means only tackling a small percentage of the emissions linked to your business. Ignoring the emissions in your scope 3 emissions and specifically your value chain means that you will never get a grip on your company’s true carbon footprint. Setting an emissions reduction target without Scope 3 also won’t meet the standards of any recognised scheme. For example, the ScienceBased Targets initiative’s new Corporate Net-Zero Standard requires participating companies to do a “complete scope 3 inventory”, to identify emissions hotspots, reduction opportunities, and areas of risk up and down the value chain. Many businesses also find that because tackling Scope 3 involves engaging more closely with your value chain, this means building stronger relationships with stakeholders and recognising opportunities to work more efficiently together, which in turn drives innovation. More and more businesses are learning that their value chain is at different stages of combatting climate change and therefore a very pragmatic approach needs to be applied for understanding Scope 3 emissions impacting their business.

Types of Scope 3 emissions

The concept of the three scopes is set out in the Greenhouse Gas (GHG) Protocol, which is the internationally recognised standard for measuring greenhouse gas emissions. The GHG Protocol splits Scope 3 emissions into two broad categories: upstream (from your suppliers) and downstream (from whoever buys your company’s goods or services). These are further divided into 15 distinct categories by the GHG Protocol.

Phil Richards

Scope 3 emissions - Upstream

1. Purchased goods and services

2. Capital goods

3. Fuel and energy use

5. Waste generated in company operations (if you don’t own or control the waste management facilities)

6. Business travel

7. Employee commuting 8. Upstream leased assets

Scope 3 emissions - Downstream 1. Downstream transport and distribution

2. Processing of sold products 3. End-use of sold goods and services 4. Waste disposal and treatment of products

5. Downstream leased assets

6. Operation of franchises

7. Operation of investment

Measuring Scope 3 emissions: where to start

First you need to identify the emissions sources in your company’s value chain, both upstream and downstream, then decide which of the 15 categories set out by the Greenhouse Gas Protocol they fall into. Then you can start measuring the energy use and calculating the associated emissions. This high-level screening should identify which Scope 3 categories of emissions are most significant to your business operations. For example, if your company relies heavily on materials that are imported by suppliers from overseas, upstream transport and distribution may be the Scope 3 category to look at first. All this is a lot easier said than done, despite the detailed and helpful guidance from the GHG Protocol. The best way to start measuring your company’s Scope 3 emissions is to seek expert help. Experts like the team at BiU will start by mapping your company’s unique emissions profile, showing exactly where emissions are being generated in its value chain, using industry recognised guidance such as GHG protocol and sector based specific guides. Some businesses, rather than engaging outside help straight away, will do the work of gathering information and transposing it into the right format in-house, but then ask a specialist organisation to verify their calculations. The feedback given by this process is particularly valuable if you’re concerned you may have fallen into bad practices or if a reporting requirement is new to your business. If you’d like advice on reporting and reducing your Scope 3 emissions, get in touch with BiU on

hello@biu.com

NET ZERO: RECOGNISING THE CHALLENGES AHEAD

Professor Jovica V. Milanovic, of the University of Manchester, discusses the balances to be struck (and the trade-offs to be made) in the pursuit of net zero.

The term ‘net zero’ has been on the lips of many a climate expert, politician, or sustainability advocate for some time now, and occupied much of the agenda at COP26. Striving for such a goal will be crucial in minimising rises in global temperature in the decades to come, and ensuring our planet is safe for future generations to inhabit. The discourse around net zero is often punctuated by grand gestures, heady promises, and bold statements about how we can and should reach it. It is hugely encouraging in many respects to see such commitment to a singular aim, but it’s also important that we take a step back and consider the ins and outs of what needs to be done to make net zero a reality. The truth that we must face is that net zero will come at a substantial financial cost to governments, businesses, and public sector organisations. There will also be a significant burden for the general public to bear, whether through higher taxes, more expensive vehicles, or the inconvenience of having to change, to an extent, their ways of life. There are many balances to be struck and tradeoffs to be made in the pursuit of net zero, and it can only be reached if we all understand and are prepared for these.

Net zero: the principle

In order to illustrate the work that needs to be done, we should establish exactly what net zero means. In the broadest terms, net zero refers to when a business, country or the entire planet isn’t adding to the amount of greenhouse gases currently in the atmosphere. This means reducing emissions as much as possible, while offsetting any remaining emissions and cutting down on practices such as deforestation.1 More than 130 countries around the world have pledged to reach net zero by 2050, with the movement given renewed impetus by discussions at COP26. Russia, meanwhile, has said it will achieve the goal by 2060, while India has stipulated a date of 2070. China has asserted that it will reach ‘carbon neutrality’ by 2060. These promises have been met with optimism by some experts: Tim Lenton, head of the Global Systems Institute at the University of Exeter, described methane reduction targets outlined at

COP26 as a “good start”. Ulka Kelkar, an economist heading the Indian climate programme for the World Resources Institute think tank, was effusive when describing India’s net-zero pledge, saying it was “much more than we were expecting to hear”.2 Net zero is clearly a great ideal to aim for in principle, but there are a multitude of requirements to be met for it to be truly realistic.

Making international collaboration work

Reaching net zero on a global scale means getting governments, businesses, and other institutions onto the same page. On a planet of close to eight billion people and with a plethora of different challenges facing each country, this is much easier said than done. For example, nations such as China rely much more heavily on fossil fuels, such as coal, to meet their vast energy demands, and will be reluctant to give up this In the broadest terms, abundant and locally available resource, net zero refers to when a even under pressure business, country or the from the international community. entire planet isn’t adding to There is also the amount of greenhouse the problem of governments making gases currently in the unrealistic or outlandish promises atmosphere. that they are either unable or unwilling to keep. For countries to collaborate effectively, it is crucial that they hold each other to account on the promises they make, and steer away from performative statements that do little to support the long-term net zero goal. It is a complex, labyrinthine challenge, but one to which we must all commit.

The everyday impact

Achieving net zero means spending money on the grandest of scales, in order to develop and implement climate-friendly technologies and bring them into the mainstream. While much of this financial outlay will rest with businesses and governments, it is inevitable that a large proportion of this, in one form or the other, will be passed down to the general public. This can be seen in new schemes encouraging people to purchase electric vehicles or replace their gas boilers with heat pumps, both of which are prohibitively expensive for the vast majority even with existing government subsidies in place. Net zero will also likely mean more expensive bills, food, goods, and travel, estimated by the National Infrastructure Commission to cost families up

PROF. MILANOVIC

Electrical Power Engineering Unviersity of Manchester

manchester.ac.uk

BIOG

Prof. Milanovic is Professor of Electrical Power Engineering at the University of Manchester, Fellow of the IEEE and former member of the Governing Board of the IEEE Power & Energy Society.