FutureTech Series - Net Zero by 2050: Industrial Decarbonization Gains Momentum to Fight Climate Change

Global warming due to the greenhouse (GHG) effect, largely influenced by human activities such as the burning of fossil fuels and deforestation, is primarily responsible for climate change which can, among others, result in increased health risks, droughts, food shortages, poverty, and displacement.

Scientists conclude that rapid global warming cannot be explained by natural cycles alone. They blame greenhouse gas emissions, especially CO2, to trap heat in the earth’s atmosphere and raise the planet’s average temperature.

In a world where climate change is increasingly influenced by industrial emissions, decarbonizing the industrial sector becomes the immediate priority to phase out CO2 emissions from the use of fossil fuels. As countries and companies target net zero emissions by 2050, the term industrial decarbonization gathers momentum as an amalgamation of emerging technologies, advanced materials, smart policies, bold investments, and new business models to push some of the largest industries to avoid the combustion of fossil fuels and remove carbon from the process chain.

Many companies, primarily startups, are broadly offering decarbonization solutions revolving around CCUS, renewable power generation, electrification, and hydrogen production and storage to accelerate net zero efforts.

Key findings discussed in the report include:

• Large enterprises and tech titans double down on net-zero commitments: Decarbonization surged up in Twitter mentions as anticipation builds around COP26x. The mentions of decarbonization and net-zero efforts in company filings are on the rise. Demand for electrification and achieving sustainability goals fuel decarbonization jobs

• VCs target low-hanging fruits to pour millions into industrial decarbonization startups: Total funding in industrial decarbonization has surpassed $19 billion by November 2021, primarily aimed at EVs, renewable energy projects, hydrogen fuel cell systems. M&A activity is dominated by green energy projects, waste-to-energy investments, and solutions for a greener and more efficient industries

• Startups develop novel CCUS and hydrogen technologies to promote industrial sustainability: Companies leverage synthetic biology and transform industrial emissions to create carbon-negative chemicals. Startups utilize natural gas to produce hydrogen and leverage renewables and software platforms to introduce carbon-free chemicals

• Corporate giants focus on deep decarbonization solutions for a carbon-free planet: 2020 witnessed the highest patent grants, GE grabs the top spot

• Industrial decarbonization is the next frontier to achieve the world’s most urgent mission: NDCs from top CO2 emitting countries in COP26 hint at the growing desire to decarbonize. CO2 emitted can be utilized through a variety of chemical processes and converted into low-carbon chemicals, materials, and feedstocks, which can act as a replacement for synthetic petroleum-derived counterparts