But will it be enough? And can it be done at a realistic cost?Ĭonsider the abatement challenge that a typical (hypothetical) financial services company faces. Options for reducing energy-related emissions include improving energy efficiency, switching to low-carbon fuels and renewable energy, and (when they become available) adopting new technologies that have yet to be brought to market or scaled up, such as carbon capture, utilization and storage, and even potentially fusion energy.Īll of these options can have a significant impact on companies’ direct Scope 1 and energy-related Scope 2 emissions, as well as on indirect Scope 3 emissions across their value chains for which they are responsible. The range of options for lowering emissions is wide. For example, more than 6,000 companies are working with the Science Based Targets initiative (SBTi) to set emissions targets in line with climate science. Thousands of companies across every industry have announced some sort of decarbonization plan, and have set goals for reaching net zero, sooner or later. How does DACS fit into an overall CDR portfolio for companies looking to offset their long tail of greenhouse gas (GHG) emissions, and how can companies get involved in making it a reality? By purchasing high-quality engineered CDR offsets, companies can start now to help achieve global net zero commitments while maximizing their chances to deliver on their own corporate net zero targets. Reaching this goal is everyone’s responsibility, including governments, NGOs, and companies in every industry that stand to benefit. According to our analysis, in order for the technology to gain widespread and timely adoption, the cost of DACS must fall from $800 or more per ton of CO 2 today to $200 or below per ton by 2050, and preferably earlier. Development of DACS technology is still in its early stages, however, and implementing and scaling it will take time and money. One of the most promising methods of CDR today is DACS, owing largely to the reliability of the offsets purchased to fund it. Funding for the development and scaling of novel CDR methods can come from the purchase of carbon offsets by companies that need to lower their carbon footprint, and from more direct investment in the technology. But to achieve net zero, even those that can reduce their CO 2 footprint by 90% will still face hard-to-abate emissions that can be counterbalanced only through high-quality CDR offsets.ĬDR covers a range of methods, including reforestation, bioenergy with carbon capture and storage (BECCS), and direct air capture and storage (DACS). Most of them are already working on roadmaps for drastically reducing emissions-the first and most essential lever for fighting climate change. An increasing number of organizations are taking a science-based approach to the climate pledges they make. Similar measures are necessary to achieve corporate net zero targets. According to the Intergovernmental Panel on Climate Change (IPCC), the world must remove 6 to 10 gigatons of CO 2 per year by 2050-and beyond. The science is clear: getting the world to net zero requires both drastic reductions in CO 2 emissions and the implementation of various carbon dioxide removal (CDR) methods for actively withdrawing residual and historical CO 2 emissions from the atmosphere. This article is the result of a collaboration between BCG and Climeworks, a company from which BCG has purchased offsets. Technology, Media, and Telecommunications.
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