Jan Lozek
We all know that preventing the worst effects of climate change requires a commitment to decarbonize by 2050. However, the stark reality is that we probably need to reach net zero much faster, as the natural world is now also a significant emitter of warming gases. The tipping point might have already been achieved.
The Amazon rainforest, for example, has been reported to be a net emitter of carbon, releasing more than it is storing, and it's feared that so much of it has been destroyed that it may be impossible to restore. Meanwhile, data also reveals that wetlands emit more methane than is produced by cattle.
If natural habitats are no longer acting as a carbon sink that can counteract a portion of manmade emissions, balancing out the net zero equation is getting increasingly complex, and technology represents an increasingly crucial part of the solution. Some are quick to pin their hopes on a silver bullet emerging technology - carbon capture, for example - but the reality is that the path to net zero will be paved by many different technologies and innovations focused on many other areas. While carbon capture is still in its infancy and deployment at scale still seems to be some way off, many of the technologies required for a net zero future are already available.
In the immediate term, there are two key areas to focus on. On one side, it's energy production, the scaling up of renewable energy investment, and the infrastructure around it. On the other, it's innovations in energy efficiency that reduce energy consumption. The current energy mix is still predominantly based on fossil fuels and will continue to be part of the system for many years, so more efficient use of those resources is part of the solution.
While the climate emergency should be reason enough for urgent action, the geopolitical challenges posed by the war in Ukraine and the current energy crisis are proving to be something of a catalyst by surfacing the economic imperative. It has highlighted the need for energy security, which through necessity in many cases, means more meaningful use of renewables. The spiralling cost of energy has highlighted the system's sensitivity and fragility and underscored its capacity to increase exponentially. Once taken for granted as a cheap and abundant resource, the crisis has reminded people of its importance – think of the 'heating and eating' decision facing many households. And by becoming one of the most significant expenses for businesses and families, efficient energy use has assumed a new economic value.
With the increase in energy prices, the economics of investing in energy efficiency and renewables has become far more attractive. At Future Energy Ventures, we see this firsthand through an explosion of interest in investments in renewable energy and energy efficiency technologies by corporations. Furthermore, with energy security becoming a primary concern, we've seen an increasing demand to take greater ownership of supply at a national, business, or homeowner level. This, in turn, is spurring innovation and interest in the sector.
"If natural habitats are no longer acting as a carbon sink that can counteract a portion of manmade emissions, balancing out the net zero equation is getting increasingly complex, and technology represents an increasingly crucial part of the solution."
And energy efficiency must not be overlooked in favour of renewables; it's a different side of the same coin. With energy prices going up, there's a very real price risk to running energy inefficiently right now. This may be a short-term issue, and energy prices may come back down, but long term, the cost of burning carbon is only going one way. Carbon pricing will increasingly become part of the price mix – meaning the cost of running energy inefficiently will ultimately continue to rise. This means looking differently at how energy is being used from all angles.
Take housebuilding, for example, where the potential for materials and systems to drive down emissions is enormous. There's the design phase, where intelligent planning and materials specification to maximise efficiency is needed, and there are companies like Buildots that focus on making the construction process itself more efficient. Then when it comes to building management, there are companies like Düsseldorf-based Dabbel that use AI to drive energy efficiency savings in commercial buildings and, on average, save 26% of energy per building.
Other exciting technologies include Nuventura, which has pioneered the design and development of clean power grid technology to minimise the use of greenhouse gases in the global energy supply. Another example is Enervee, which has created a suite of software applications and services designed to drive more energy-smart buying decisions among consumers.
But while global events have ignited more interest and investment in new technologies, the future of energy will look very different from today. It will be built on innovations that have not yet been conceived of. And with ongoing innovation, abundant cheap - or even free - energy will be possible in the end. But we are in the midst of that transition – that may take many years – and there are steps that must be taken now to get us there.
With the prize of inexpensive or free energy in mind, policymakers need to think long-term, not about the next election. Wind energy, for example, has taken +40 years to become a commodity, and hydrogen is another one of those longer-term plays. It requires abundant, consistently delivered, green energy and has the potential to be a very cheap energy source.
Innovation is key to decarbonisation and must continue, but we must balance immediate application and already commercially viable technologies against more distant, slow-developing initiatives. We have the capability to move the dial now, and we need to make it happen.
