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1、Pathways to Net Zero:The Innovation ImperativePathways to Net Zero:The Innovation Imperative1This report was produced by Environmental Defense Fund,with analytical and research support from Deloitte Consulting,LLP,.The views within the report are that of Environmental Defense Fund,and do not necessa
2、rily reflect the views of report partners or collaborators.October 2022.Table of ContentsExecutive Summary.2Introduction.6Climate Abatement Solutions.6The Net Zero Gap.8A Systems Approach to Climate Innovation.12“The Big 3”:Climate Technology Foundations.14“The Extended 10”:Key Supporting Climate Te
3、chnologies.24Conclusion:Every Company has a Stake in the Net Zero Future.51Appendix.52Pathways to Net Zero:The Innovation Imperative2Executive summaryClimate technology is one of three main categories of climate abatement solutions that can reduce or remove greenhouse gases(GHGs)from the atmosphere
4、to help avoid the worst impacts of climate change,in addition to natural climate solutions and behavior change solutions.Action across all three categories is critical to reach net zero emissions by 2050.Due to a variety of long-standing systemic and economic barriers,current rates of development an
5、d deployment of climate abatement solutions are insufficient to reach net zero,leaving a“net zero gap.”Bridging this gap by 2050 will require innovation across business,finance,policy and civil society to accelerate the deployment and development of new and existing climate solutions for the shared
6、purpose of addressing climate change.This endeavor is not easy and will require overcoming long-standing systemic barriers to innovation.Climate technology innovation is the process of helping climate technologies progress through various stages of technological feasibility and commercial viability,
7、from small prototypes to scaled diffusion in the market.This report focuses on the collective action and advocacy opportunities available to companies and investors interested in catalyzing technological breakthroughs as part of the global effort to reach net zero.Emissions flow through a series of
8、interconnected systems,each containing a set of climate technologies that can reduce or remove greenhouse gas(GHG)emissions within and across sectors.Many climate technologies rely on consistent access to clean energy to reach their full abatement potential.As a result,near-term actions to accelerat
9、e“The Big 3”renewable electricity,grid connectivity&storage,and sustainable fuels will be critical to creating a foundational source of clean energy and maximizing the abatement impact of climate technologies across systems.The private sector can engage in creative solutions to accelerate“The Big 3.
10、”For example,investors can back the development of batteries made from more sustainable materials;utility providers can leverage carbon footprint analytics to recommend an optimal renewables grid mix;and even companies from seemingly“unrelated”sectors can source renewable energy through power purcha
11、se agreements(PPAs)and enter coalitions advocating for clean energy policy.To fast-track impact,these actions must happen in parallel with investments in“The Extended 10”a set of 10 technologies that build on“The Big 3”to drive climate abatement throughout end use systems.“The Extended 10”technologi
12、es were chosen for their anticipated climate impact and collective involvement of all emitting sectors,including heavy industry,buildings,transportation,food&agriculture,electricity generation and also carbon removal.Solving climate change represents one of the largest market opportunities in histor
13、y,and companies and investors who move quickly to adopt and advance climate technology are likely to become leaders in a low-carbon future.These same companies must be intentional about managing externalities of climate technology whose deployment will influence equitable and environmental outcomes
14、across socioeconomic,racial and geographic groups.Pathways to Net Zero:The Innovation Imperative3 3Pathways to Net Zero:The Innovation Imperative42050 Sectoral Emissions Abatement Enabled by Todays Solutions Business as Usual ScenarioNet Zero GapCumulative 2050 emissions(Gt CO2e)Emissions Reduction
15、LeversClimate TechnologyAct by championing and accelerating climate technology innovationAdvocate for policies accelerating adoption of technologiesBehavior ChangeNatural Climate SolutionsCompanies across sectors should act now to accelerate technological breakthroughs and bridge the net zero gap.Co
16、mpanies and investors ahead of their peers in developing and deploying new climate technologies are likely to derive significant business value and establish a leadership position in a low carbon future.Figure 1.Innovation Imperative Executive Summary4Climate technology innovation is the process of
17、improving the technological feasibility and commercial viability of technologies,from prototype stage to scaled market diffusion.The rate of innovation today is insufficient to reach net zero by 2050,leaving a Net Zero Gap.Pathways to Net Zero:The Innovation ImperativePathways to Net Zero:The Innova
18、tion Imperative5Emissions flow through of a series of interconnected systems.“The Big 3”energy technologies that enable climate solutions across systems should be prioritized to maximize the availability of clean energy.Figure 1.Innovation Imperative Executive Summary Renewable Electricity Sustainab
19、le Fuels Grid Connectivity&StorageConcrete CCUSGreen SteelAlternative RefrigerantsBuilding InsulationBattery EVs/Charging NetworksAlternative ProteinsLivestock Methane InhibitorsPrecision AgricultureDirect Air CaptureNuclear Fission&FusionExtended 10 TechnologiesScaling“The Big 3”must happen in tand
20、em with initiatives to accelerate the “Extended 10”technologies with highest-abatement potential across sectors.Prioritized InnovationsFuel DistributionEnergy StorageFuelsElectricity GenerationGrid ConnectivityFood&AgricultureTransportationBuildingsHeavy IndustryCarbon RemovalPathways to Net Zero:Th
21、e Innovation Imperative5Companies manage externalities by deploying climate technologies in a way that drives equitable outcomes across socioeconomic,racial and geographic groups.Pathways to Net Zero:The Innovation Imperative6Climate Technologye.g.,industry and transportation electrification,renewab
22、le energy production and storageBehavior Changee.g.,habit changes to reduce consumption of high-emissions products and services such as air travelNatural Climate Solutionse.g.,initiatives to conserve and restore ecosystems (e.g.,tropical forests,oceans)that sequester vast amounts of carbonEXAMPLESCl
23、imate Abatement SolutionsLevers for developing and deploying climate abatement solutionsProjects,coalitions,market signalsCapital investments,green bondsFunding and subsidies,national targetsSocial/NGO advocacy,demand-side shifts(Out of report scope)Figure 2.Three types of climate abatement solution
24、s can reduce and remove greenhouse gases from the atmosphere to avoid the worst impacts of climate changeBusinessFinancePolicyCivil SocietyIntroductionThe willingness of the private sector to act on climate has never been stronger.COP26 inspired new climate commitments from business leaders across t
25、he world.ESG(environmental,social and governance)topics have become mainstream in organizational agendas,and companies are beginning to prepare for potential mandatory reporting on climate in the U.S.and beyond.Despite this progress,the Intergovernmental Panel on Climate Changes(IPCC)latest report h
26、as once again delivered a sobering and unequivocal message:its not enough.Current rates of progress remain insufficient to realize the commitments made under the Paris Agreement.Its latest estimates find that limiting global temperature increases to 1.5 Celsius(C)above pre-industrial levels would re
27、quire GHG emissions to peak by 2025 at the latest,in addition to achieving global net-zero emissions by around mid-century.Current global projections are well off track.However,with new opportunities and incentives presented by the passage of the Inflation Reduction Act in the U.S.,the private secto
28、r has an increasingly significant opportunity to help avoid the worst impacts of climate change.This report aims to arm business leaders and investors with the information and guidance they need to accelerate the development and deployment of one of many levers for climate action:climate technology.
29、Pathways to Net Zero:The Innovation Imperative6Pathways to Net Zero:The Innovation Imperative7Climate technology along with behavior change and natural climate solutions represents one of three abatement solutions that can help reach net zero.Each category is essential and relies on strategic,mutual
30、ly reinforcing actions across business,finance,policy and civil society.Climate technology refers to a set of machinery or equipment developed through the application of scientific knowledge and used for the practical purposes of reducing or removing GHGs.While business leaders can help drive impact
31、 across all three categories,this report focuses on climate technology.Technology offers a wide range of mechanisms to accelerate climate solutions,and company actions to support these mechanisms will vary based on their novelty to the market.Many climate technologies are not yet considered competit
32、ive in the market and require innovation to advance their technological feasibility and commercial viability.This report builds on the first two reports of the Pathways to Net Zero series.The first report,A Guide for Business,makes the case for the critical urgency of reaching global net zero and ou
33、tlines sector-specific pathways for getting there.The Decisive Decade subsequently provides a clear framework to help companies activate these potential abatement solutions within their businesses and supply chains.It makes clear the necessity of business acting now to address climate change.As the
34、third report,The Innovation Imperative focuses on what happens next after companies deploy existing abatement solutions and still come up short on reaching net zero.In this case,incremental technology advancements and the repurposing of existing technologies for decarbonization applications can help
35、 bridge the gap.The Innovation Imperative demystifies the landscape of climate technology and provides a clear set of recommendations for how business leaders and investors can lead in a low carbon future through strategic action and advocacy that accelerate the development and deployment of the mos
36、t promising climate technologies.Pathways to Net Zero:The Innovation Imperative8The good news is that most of the climate technologies needed to reach net zero already exist today.1 The bad news is that 75%of them are not yet commercially deployed at scale.Even more prominent technology success stor
37、ies,such as solar panels and electric vehicle batteries,took around 30 years to boast any remarkable impact.2 With less than 30 years to go to 2050,climate technology innovation must achieve a rapid pace that far exceeds todays rate of progress.This challenge is illustrated by the net zero gap.3 Fig
38、ure 3 illustrates the extent to which existing climate solutions would abate emissions in 2050,assuming a business-as-usual scenario where no further climate policies nor concerted technology innovation efforts take place in the next 30 years.4 In this scenario,global 2050 emissions(represented by t
39、he left-hand bar)can be partially mitigated by deployment of sectoral solutions(energy generation,heavy industry,buildings,transportation and agriculture).Abatement is also expected from carbon sinks(e.g.,“locking”carbon into naturally absorbing wetlands)and behavior changes(e.g.,health and educatio
40、n to improve family planning and offset population growth).Even if these solutions are deployed between now and 2050,the size of the right-hand net zero gap(and associated investment gap5)demonstrates the shortcomings of global policy and current rates of innovation that amount to less than half of
41、the reductions needed by 2050.The net zero gap exists in large part due to political inertia(including the influence of fossil fuel lobbying)and could shrink significantly through increased political appetite for action on climate.Indeed,in the U.S.it will shrink with the passage of the Inflation Re
42、duction Act.However,the private sector cannot afford to wait before acting themselves.Business leaders should instead observe the climate crisis for what it is both a threat to their future operations and a compelling market opportunity that can be seized through innovation positioning their compani
43、es as leaders in a low carbon future.To shrink the net zero gap,public and private organizations will need to overcome persistent,systemic barriers that have historically limited much needed investment in climate technology innovation.Insufficient infrastructure to support climate technologies,such
44、as limited electric vehicle charging networks,as well as uncertain climate policies that create moving targets for business decision makers on topics such as vehicle fuel standards,can make companies climate investment decisions seem even more risky and nebulous.Lack of public and private funding fo
45、r research and development(R&D),or key input shortages,such as insufficient renewable energy to produce green hydrogen through electrolysis,also significantly slow technology development.The Net Zero Gap$38 trillion funding gapThe IPCC estimates$48 trillion in investment needed from 2020-2050 to rea
46、ch net zero.Were currently on track to spend just$10 trillion,leaving a$38 trillion funding gap.Pathways to Net Zero:The Innovation Imperative92050 Sectoral emissions abatement enabled by todays solutions business-as-usual scenarioEstimated 2050 emissions(Gt CO2e)6050403020100Energy AbatementIndustr
47、y AbatementBuildings AbatementEngineered&nature-basedBehavior-changesTransportationAbatementAgricultureAbatementCarbon Sinks AbatementHealth&Ed AbatementNet Zero GapClimate tech.Figure 3.The net zero gap represents remaining emissions in 2050 in a scenario void of new climate policies and technologi
48、cal breakthroughs.Note:this analysis was conducted prior to the passage of the Inflation Reduction Act and does not consider investments or incentives included in the bill.Expected Emissions in 2050Pathways to Net Zero:The Innovation Imperative10On the demand side,lack of technological awareness amo
49、ng potential buyers,evolving national and company targets,and dominance of legacy markets collectively lead to a lack of demand signaling for new technologies.Insufficient demand signaling results in part from information asymmetries.Increased attention to ESG reporting indicates progress towards da
50、ta transparency;however,companies still experience a cumbersome process of measuring,verifying and sharing supply chain emissions data.Finally,organizational and political culture can hamper the willpower to innovate.Short-termism among business and government leaders,driven by incentive structures
51、that reward quarterly returns and frequent election cycles,limit the investments that need to be made now to prepare for net zero in 30 years.Competitive inter-firm dynamics can also hinder the trust,collaboration and knowledge sharing needed to solve a problem of such scale.Pathways to Net Zero:The
52、 Innovation Imperative10Insufficient infrastructureUncertain climate policyKey input shortagesInsufficient fundingLow awareness of existing techsLimited demand-signalingLimited data transparencyOrganizational/political cultureShort-term focusLack of trust/collaborationKey challenges impacting the de
53、velopment and deployment of climate technology innovationsFigure 4.Existing market and incentive structures have restricted the effectiveness of actions needed to close the net zero gapPathways to Net Zero:The Innovation Imperative10Pathways to Net Zero:The Innovation Imperative11Innovation Case Stu
54、dy COVID-19 Vaccine DevelopmentSituationThe pandemic had halted economic activity in a matter of months as case-related deaths rippled across the world,necessitating urgent collaboration between governments,companies and scientists on an unprecedented scale to produce a life-saving vaccine.Innovatio
55、n LeversRapid response was made possible by the sharing of scientific research,public-private partnerships that created strong demand signals,creative use of existing mRNA technology,and the competitive incentive for pharmaceutical companies racing to develop the first safe and viable product.Innova
56、tion Failures About 85%of global doses administered in the first seven months of the vaccines launch were in high and middle-income countries,highlighting equity concerns that are just as relevant to the deployment of climate technologies.In addition,the politicization and profusion of misinformatio
57、n regarding what should have been recognized as a universal public health issue delayed the solution,losing an unnecessary number of lives in the process.There is precedent for coordinated public-private action to overcome an urgent global crisis most recently demonstrated by the development of the
58、COVID-19 vaccine.Inspiring parallels can be drawn between this cooperative response and achieving net zero,but the success story points to important areas for future caution.The COVID-19 vaccine development offers both a useful model for successful collective action and a cautionary tale of how a te
59、chnologys impact can be hindered by a range of socio-economic factors and inequities.Pathways to Net Zero:The Innovation Imperative11Pathways to Net Zero:The Innovation Imperative12A Systems Approach to Climate InnovationClosing the net zero gap will not be easy,and a haphazard pursuit of technologi
60、es based on their“new and shiny”appeal is a recipe for failure.Innovation encompasses more than“disruptive”technologies.Whether through revolutionizing process efficiency,shifting use patterns,or simply applying existing solutions to new customer segments or geographies,innovation is most effective
61、when it seeks different approaches to problem-solving by first observing the flaws of a holistic system.Investments should be strategic and rooted in systems change,which begins with the understanding of how emissions flow from energy generation to end-use sectors of the economy.Each sector is respo
62、nsible for producing a portion of global emissions,and each contains a set of climate technologies that can reduce these emissions.6,7 The effectiveness of each technology is inherently interdependent the progress of one may either stimulate or stifle the progress of another.Hydrogen-based fuel cell
63、s and electrification are both viable options for decarbonizing heavy-duty vehicles,for example,but prohibitively large infrastructure costs prevent the market from investing in their parallel application.As a result,its likely that just one will emerge as the mainstream option for replacing interna
64、l combustion engines.Food&AgricultureAlternative Proteins,Livestock Methane Inhibitors and Digesters,Precision Agriculture Zero-Emissions Farm EquipmentTransportationBattery Electric Vehicles,Charging Networks,Clean Shipping,Electric Aviation,Energy Efficiency,Fuel Cell VehiclesBuildingsAlternative
65、Refrigerants,Demand Response,Energy Efficiency,InsulationHeavy IndustryAdvanced Plastics Recycling,Concrete CCUS,Green Steel,Energy Efficiency,Fossil Fuel Combustion CCUS,Industrial Heat,Methane Leakage Detection and RepairFuel DistributionLeakage Detection and RepairEnergy StorageCompressed Air,Cle
66、an Hydrogen,Pumped Hydro,Flywheel,BatteriesGrid ConnectivityLoad Flexibility,Long distance HVDCs,Smart GridsCarbon RemovalDirect Air Capture(DAC),Enhanced Rock WeatheringFuelsBiofuels,Clean Hydrogen,Green Ammonia,SynfuelsElectricity GenerationGeothermal,Nuclear,Ocean Wave Power,Solar,Small Hydropowe
67、r,Waste Methane Capture,WindInterdependencies between climate technologies=Figure 5.Each system contains a set of climate technologies that can reduce or remove GHG emissions within and across sectorsPathways to Net Zero:The Innovation Imperative13The crux of these systems lies in the dependence of
68、end-use sectors on clean energy production,storage and distribution.Each sectors emissions abatement is directly influenced by how clean(low emission)its energy inputs are,and whether clean energy is readily available to use.This core dependency points to the systems responsible for energy generatio
69、n as critical intervention points capable of disproportionate emissions reductions.It follows that systems change begins with innovation to position renewable electricity as the primary source of energy generation in 2050,which cannot happen without the support of grid connectivity and energy storag
70、e.Sustainable fuels will be critical to complementing the future renewable energy mix as not all energy processes can be electrified due to technical and structural limitations.Taken together,these solutions can unlock the clean energy infrastructure needed to create the foundation for a net zero fu
71、ture.Pathways to Net Zero:The Innovation Imperative14“The Big 3”:Climate Technology FoundationsWe refer to these clean energy foundations and the prioritized technologies within them as“The Big 3.”The first is renewable electricity,which focuses on solar and wind as the most readily available and co
72、st-effective renewables for global scaling.The second is grid connectivity and storage,which includes battery technologies,other low-carbon energy storage technologies and innovations to grid transmission and load flexibility.Modernized grid infrastructure is essential for connecting renewable energ
73、y to its users and is a key factor in balancing the supply and demand issues currently hampering the intermittent nature of wind and solar renewables.A healthy supply of renewable energy can help produce not only clean electricity but sustainable fuels,which includes biofuels,synfuels and clean ammo
74、nia as the most promising clean energy sources for transportation methods that cannot be easily electrified(e.g.,aviation and maritime shipping).The remainder of this report provides an overview of prioritized technologies along with an actionable framework of recommendations for how companies and i
75、nvestors can act and advocate to accelerate innovation.Companies can influence the development of“The Big 3”and other climate technologies by incorporating these technologies into their own businesses,investing in partnerships and infrastructure,and advocating for the policies needed to catalyze the
76、ir deployment.Investors can play a key role in encouraging their existing and prospective portfolio companies to take these actions while also engaging in direct investment and advocacy work.By setting and meeting internal targets,signaling demand for new technologies,and collaborating with industry
77、 groups and suppliers to bridge research and funding gaps needed to scale solutions.Where relevant,acting can include customer engagement to spark interest in climate technologies.And align your trade associations climate policy advocacy with those same goals.An active role in climate technology adv
78、ocacy can include lobbying for concrete government action,dedicated investments in supporting infrastructure and global standards that will incentivize innovation.Figure 7.Innovation requires different types of engagement from the private sector.Act by championing and accelerating climate technology
79、 innovationAdvocate for policies accelerating adoption of technologiesPathways to Net Zero:The Innovation Imperative14 RENEWABLE ELECTRICITYThe Big Three*SUSTAINABLE FUELS GRID CONNECTIVITY&STORAGEFigure 6.“The Big 3”technology sets*See Appendix for additional sources and calculation methodology for
80、 each technology discussed below.Pathways to Net Zero:The Innovation Imperative15Renewable Electricity GenerationAll sectors of the economy rely on energy(from electricity to fuel to heat)to power assets and processes.Even energy-intensive processes in heavy industry that cannot be directly electrif
81、ied will ultimately need massive amounts of renewable energy to decarbonize.Demand for an abundance of clean energy is best matched with the renewable sources most capable of widespread global reach:solar and wind energy.Thanks to impressive investments and advancements in the past few decades,solar
82、 and wind technologies can efficiently capture these renewable energy sources and transform them into readily deployable electricity.Both technologies are considered technologically mature,with continuous improvements to electricity conversion efficiencies credited for incremental breakthroughs(e.g.
83、,improved materials).Despite the prominence of wind and solar as well-known and cost-effective climate technologies,they still experience commercial challenges throughout their lifecycles.The installation and permitting process for projects can be lengthy due to inefficient legal frameworks and comm
84、unity siting preferences,and where the renewables get installed will become an increasingly contentious topic as the net zero requirement for an abundance of wind and solar confronts limited land availability.A significant challenge for wind and solar is their variable nature dependent on the weathe
85、r.Solar and wind power need to be complemented with a reliable mix of other renewables including geothermal(powered by the earths heat)and hydropower(powered by waters flow),as well as with utility-scale storage infrastructure,to ensure a baseload of clean power is constantly supplied to the grid.Wi
86、nd and solar infrastructure also do not last forever,and retired wind blades are currently clogging landfills as they are difficult to recycle.8 Even solar panels,composed of 95%recyclable materials,are not yet recycled at scale.Utilities can address waste and materials challenges by forming consort
87、iums,as GE and Engie SA are doing,to research improved,more easily recyclable infrastructure designs.Figure 8.The Big 3:Renewable Electricity Generation Where we are today Where we need to be in 2050(global yearly capacity)1,592 TWh24,785 TWh23,469 TWh821 TWh288 GtPotential CO2e emissions abated bet
88、ween 2020-2050$280 BMarket size in 2050(net zero scenario)$9.5 TInvestment needed by 2050$31/tCO2eSolar MAC*$11-40/tCO2eWind MACRenewable Electricity Generation Key Climate Technologies:Solar,Wind1234512345Technology Feasability*:Wind Generation:Commercial Viability:Solar Generation:*MAC”as used thr
89、oughout technology deep dives refers to the“marginal abatement cost”of technology*Technological Feasibility and Commercial Viability is scored throughout this report using a framework adapted from NASAs and IEAs Technology Readiness Level(TRL)scales.Pathways to Net Zero:The Innovation Imperative16In
90、vestments to ramp up renewable electricity capacity will benefit both the climate and companies bottom linesit is estimated that switching to solar energy in the U.S.can reduce commercial property owners electricity costs by an average of 75%.9 However,renewable energy projects often occur at a sign
91、ificant scale difficult for individual companies to tackle alone.Walmart helps its suppliers overcome this challenge by creating the organizing infrastructure for group purchasing of renewable electricity through Power Purchase Agreements(PPAs)with Schneider Electric.The private sector can extend as
92、sistance to communities lacking purchasing power by advocating for government collaboration,like with the U.S.Department of Energy(DOE)and U.S.Department of Health and Human Services(HHS),to connect low-income households with wind and solar project developers.OTHER ESG CONSIDERATIONSConstruction of
93、mining sites for rare earth minerals disrupts the economies and health of local indigenous communities,and a lack of substantial human rights policies has led to violations of workers rights.The use of chemicals in manufacturing can generate hazardous and radioactive byproducts.Natural habitats loss
94、 and degradation of land use can be mitigated by locating wind/solar in previously degraded locations(e.g.,unusable mines or along transportation corridors).Near-term(2022-2025)Medium-term(2025-2030)ACTUtilities Set aggressive targets(renewable energy production,infrastructure recycling)Replace old
95、infrastructure with new designs that support higher energy conversion rates Customer engagement through education campaigns and tools Consortium to fund and research new,more easily recyclable material and designs Partnerships with recycling companies and waste managers to increase capabilities to r
96、epurpose unrecyclable items such as wind turbinesAll Signal demand through Power Purchase Agreements(PPAs),sector-organized RE procurement contracts,purchase of high-quality verifiable RECs,and active engagement with utilities regarding capacity needs Disclose top three initiatives taken to increase
97、 renewable energy use Set targets and develop roadmaps to achieve 24/7 clean electricity(i.e.,invest,advocate,and innovate to ensure infrastructure powered by RE at all times vs.annual matching)ADVOCATE More aggressive state and federal targets(locally and in countries with subsidiaries/operations)I
98、ncreased public funding and public-private partnerships(PPPs)to offset upfront costs Push back on regulations limiting renewable energy production Ensure voluntary standards and protocols incentivize and reward corporate renewable energy procurement Recycling requirements for solar panels and wind t
99、urbines(supported by funding mechanisms such as reclamation bonds)Table 1.Actions to innovate renewable electricityPathways to Net Zero:The Innovation Imperative17Grid Connectivity and Storage Todays grid is not prepared to support a renewables-dominant energy mix,making grid infrastructure technolo
100、gies critical for connecting renewables to the populated areas and industry centers that need them the most.This can be achieved through the modernization of existing technologies,such as high-voltage direct current(HVDC)transmission lines that can reduce power losses over long distances and increas
101、e grid resilience in the event of natural disasters.Smart grids that leverage artificial intelligence and analytics will be key to managing energy supply and demand,as well as utility-scale batteries(currently predominantly lithium-ion)capable of storing hundreds of megawatt-hours to temper daily gr
102、id load fluctuations.Because batteries can be deployed where additional capacity is needed,they will play a large role in providing cheaper and more reliable renewable energy to isolated communities that might have otherwise relied on coal or gas.A more nascent application is the production of clean
103、 hydrogen as a storage vessel that can be readily converted back to electricity as needed.While smart grids and supporting transmission technologies are proven to work at scale,cost barriers persist due to the overall lagging of the utilities industry.Customers have felt limited in their ability to
104、advocate for innovations,such as demand-response programs,due to the inertia of longstanding billing and metering systems.Batteries also face commercial barriersthe dominant lithium-ion battery type is manufactured from rare materials subject to shortages,without sufficient circular economy infrastr
105、ucture to enable their recycling at scale.Battery storage installations are expensive upfront and difficult to valuate in the long-term,in addition to facing regulatory hurdles.Hydrogen storage must overcome a variety of technical hurdles to deliver on its promise.Storage in underground caverns is o
106、ften recognized as the best way to store large quantities of hydrogen.However,cavern availability is subject to geological constraints and the risks of hydrogen leaking or Where we are today Where we need to be in 2050(global yearly capacity)15%50%930 GW10 GW$227 BMarket size for grid battery storag
107、e projects 2020-2050$636 BAnnual grid spending needed in 2050Grid Connectivity and Storage Key Climate Technologies:Batteries,Clean Hydrogen(storage),Load Flexibility,Long Distance HVDCs,Smart Grids23452345Technology Feasability:Grid infrastructure&technologyClean hydrogen(stor
108、age)Commercial Viability:Grid infrastructure&technologyClean hydrogen(storage)Grid Digitalization:(%share of grid assets connected to“smart”demand systems)Grid Storage:Abatement estimate is excluded to avoid double counting with technologies that rely on the gridFigure 9.The Big 3:Grid Connectivity
109、and StorageUtility-scale batteriesUtility-scale batteriesPathways to Net Zero:The Innovation Imperative18diffusing to mix with bacterial impurities in caves have yet to be fully understood.10 Smaller-scale storage of hydrogen in cryogenic tanks is also being considered,but their deployment readiness
110、 is stalled by the issues of cost,hydrogen leakage and the relatively low energy density of hydrogen per volume.As newer transmission and distribution players progress R&D to mitigate technological storage challenges,utilities must innovate the existing grid system to prepare for a future state of i
111、ntegration with renewable resources.They can begin by adopting more dynamic and optimized demand-response tools that leverage IT platforms to spread energy demand to off-peak periods on a daily and seasonal basis.Demand-response programs can be negotiated through bilateral contracts with both commer
112、cial and industrial customers.While entailing upfront effort and compensation packages to the participants,demand response programs are proven to ultimately avoid costs associated with overrunning energy capacity.Behavior shifts are often the true catalysts to the success of grid management technolo
113、gies,and utilities can make grid dynamics more visible to customers through awareness campaigns on demand-response initiatives.ConEdison,for example,offers a package exchanging rebates on smart thermostats and electricity bills for the occasional allowance to briefly adjust electricity settings in t
114、imes of high demand.When equipped with knowledge and incentives,every customer can play a contributing role.Actors outside of the utilities industry have more sway over grid innovation than they might think,especially those planning electric vehicle(EV)fleets.For example:The Johan Crujiff Arena in A
115、msterdam is pioneering vehicle-to-grid technologies to supplement its solar and battery storage system during high-load events,providing rewards to the EV drivers attending the event.Companies can also engage in PPPs to build national battery supply chains,such as GMs and Teslas cross-sector coaliti
116、on advocating for U.S.tax incentives to battery manufacturing and processing.Blue hydrogen is derived from the same chemical processing technique that makes gray hydrogen,except the CO2 generated in processing is captured and stored elsewhere.Green hydrogen is produced by splitting water into hydrog
117、en and oxygen through electrolysis using renewable electricity.The Hues of HydrogenHydrogen can be produced through different methods with varying environmental impacts:Gray hydrogen is derived from natural gasmade with fossil fuels.Most of the hydrogen produced today is gray hydrogen.Pathways to Ne
118、t Zero:The Innovation Imperative19Why is hydrogen leakage a big deal?Hydrogen molecules are so small that theyre prone to escaping from storage tanks,pipelines and other equipment intended to contain them.This is a problem because hydrogen is an indirect greenhouse gas,which means that when released
119、 into the atmosphere it increases the concentrations of other greenhouse gases such as methane,ozone,and water vapor.“CLEAN”WITH CAVEATSClean hydrogens climate impact will depend on leakage ratesof both hydrogen itself and,in the case of blue hydrogen,of methaneinto the atmosphere and the extent of
120、its deploymentResearch from EDF estimates that,in the event of high hydrogen and methane leakage rates,swapping fossil fuels for blue hydrogen could contribute more to global warming in the following two decadesOn the other hand,deployment of green hydrogen with minimal leakage would nearly eliminat
121、e the warming impacts of the fossil fuels it replacesEffective leakage detection and repair technologies must not only be developed and implemented at scale,but also mandated and enforced through regulationsPathways to Net Zero:The Innovation Imperative19Pathways to Net Zero:The Innovation Imperativ
122、e20Near-term(2022-2025)Medium-term(2025-2030)ACTUtilities Increase number and categories of demand-response programs(across commercial and residential customers);increase adoption through education and customer outreach R&D in hydrogen leakage detection and repair R&D in new battery technologies(e.g
123、.,solid state)and increased recycling capabilities R&D in high efficiency electrolysis or high efficiency power-to-hydrogen-to-power conversion technologiesAll Work with utilities to maximize the use of demand response across facilities and demand the same from suppliers Leverage EV fleets as energy
124、 storage and source(“vehicle-to-grid”technology)Implement storage capacity targets(in addition to procurement targets)Renegotiate contracts with utilities to demand grid efficiencies powered by new technologies Consider grid connectivity risks in investments decisionsADVOCATE Funding and incentives
125、to support grid modernization(e.g.,smart-grids,HDVCs or utility-scale batteries)PPPs to build national battery supply chains Incentives(e.g.,tax credits,R&D,innovation inducement prizes)for innovation in energy storage Regulatory(environmental,safety)standards for hydrogen storage OTHER ESG CONSIDER
126、ATIONSOpportunity to maximize use of micro-grid technologies and new business models(e.g.,pay-as-you-go)to secure energy for regions and communities with historically limited access to electricity.Grid modernization costs will likely be passed on to customers in the absence of proper regulation,risk
127、ing disproportionate impacts to end-users with lower incomes.Table 2.Actions to innovate Grid Connectivity and StoragePathways to Net Zero:The Innovation Imperative21Sustainable FuelsClean ammonia(made from clean hydrogen),certain biofuels,and synfuels are promising sources of clean energy for trans
128、portation methods that cannot be easily electrified(e.g.,aviation and shipping).11 Sustainable fuels overall have yet to reach full commercial viability their current prices cannot compete with the subsidies that continue to pour into carbon-emitting fuels,and weak demand signals have resulted in a
129、slow pace of investments into additional supply capacity.12 Less technologically mature synfuels and biofuels need the support of recurring,guaranteed purchase commitments to justify upfront investments towards improving energy conversion rates that will ultimately make these technologies more affor
130、dable.This is especially important for the long-term success of biofuels that are made from waste or other feedstocks that dont compete with food uses(e.g.,algae and organic waste)as opposed to those derived from crops or edible feedstocks(e.g.,corn,soy,edible beef tallow,etc.).Biofuels derived from
131、 the latter create risks to food systems and could contribute to deforestation or GHG emissions from land use conversion.Without overcoming these barriers,biofuels may not produce their desired climate benefits.Clean ammonia also faces extensive challenges.Ammonia is a highly toxic and corrosive che
132、mical that requires careful management.Further,its key ingredient,clean hydrogen,comes with the same environmental risks as discussed in hydrogen storage applications.If ammonias risks to human and ecosystem health can be managed,and if hydrogen leakage can be mitigated,the use of clean ammonia in i
133、nternal combustion engines or fuel cells will be extremely helpful for decarbonizing the shipping sector.For the maritime sector to decarbonize by 2050,at least 5%of vessels will have to run on zero-carbon fuels by the end of this decade.That is likely to be achieved by the use of clean ammonia(the
134、first ammonia two-stroke engine will be on the market in less than two years).Significant work must be done to enable the transition,such as building new infrastructure,ammonia bunkering point or adopting a robust policy framework addressing the challenges related to ammonia.The maritime sector can
135、make headway in their decarbonization goals by sending demand signals across the value chain to stimulate investment in clean ammonia and other sustainable shipping fuels like clean methanol.Where we are today Where we need to be in 2050(global yearly capacity)108 Mt750 Mt(oil equiv.)55 Mt(oil equiv
136、.)36 Mt40 GtCO2e abatement by biofuels,synfuels and clean ammonia(2020-2050)27%2050 biofuels share in transportation230B gal.Estimated commercial jet fuel 2050 market size$33/tCO2eBiofuel MAC$168/tCO2eSynfuel MACSustainable FuelsKey Climate Technology Innovations:Bio/Synfuels,Clean Ammonia 123451234
137、51234512345Technology Feasability:Clean AmmoniaBio/syn FuelsCommercial Viability:Clean AmmoniaBio/syn FuelsClean Ammonia for Transport:Biofuels:Figure 12.The Big 3:Sustainable FuelsPathways to Net Zero:The Innovation Imperative22The Aspen Institute is encouraging coalitions that organize cargo owner
138、s and suppliers to prepare such supply chains,and encouraging companies to set targets around the use of zero-emissions fuel in their value chain maritime shipping activities.Companies of all sectors can strengthen demand signals for sustainable fuels,and many have a direct stake as employee air tra
139、vel most likely factors into their own decarbonization goals.RMI and EDF are spearheading the Sustainable Aviation Buyers Alliance(SABA)to drive investments into high-integrity sustainable aviation fuel(SAF)and catalyze member engagement in policy-making efforts(e.g.,Deloitte,Microsoft).Businesses c
140、an instill more confidence in their decarbonization agendas if they advocate for formalized standards ensuring the emissions integrity of fuel switching.The role of hydrogen hubs as sites localizing all aspects of the production process(thus minimizing chances of leakage during transport)could be in
141、tegral to clean hydrogens success,and they are gaining more government attention.The Advanced Clean Energy Storage(ACES)project recently won a$504.4M loan from the U.S.Department of Energy.The project plans to convert excess renewable power to hydrogen and use it to balance the grid in Utah and Los
142、Angeles.So long as the ACES project does not divert clean electricity from primary electrification uses,it can serve as a good experiment for hydrogens potential as a feasible and clean power source while allowing for the evaluation of leakage risks during hydrogens transport and underground storage
143、.Near-term(2022-2025)Medium-term(2025-2030)ACTTransport Fuel Clean ammonia bunkering(shipping)feasibility studies and pilots Implement port and airport refueling infrastructure for high-integrity bio/synfuelsFood&Ag Signal demand by setting and meeting clean ammonia targets(to replace traditional fe
144、rtilizers),and through sector-organized procurement contractsAll Signal long-term demand for high-integrity bio/synfuels,clean ammonia through targets,recurring collective purchasing agreements and commitments Retrofit/reform supply chain infrastructure to support fuel alternatives Set internal carb
145、on-fees on fuelADVOCATE National taxonomy and standards for fuel alternatives,e.g.,by fuel source(to protect land use),by end use(e.g.,X%of airline fuel to use SAF)Phase-out of fossil fuel subsidies Hydrogen hubs where industries with large energy needs strategically locate near clean energy sites C
146、ap-and-trade programs incentivizing high-integrity bio/synfuels,clean ammoniaTable 3.Actions to innovate Sustainable FuelsPathways to Net Zero:The Innovation Imperative23OTHER ESG CONSIDERATIONSIn the case of ethanol(made from corn),various factors including the use of fertilizers in the agricultura
147、l process,and deforestation on behalf of corn have been shown to eliminate known climate benefits.In addition,indirect land use change threatens to worsen food supply scarcities already plaguing developing countries.Even if technically feasible,open questions remain regarding how big a role competit
148、ive biofuels should play in the future energy system.Pathways to Net Zero:The Innovation Imperative24“The Extended 10”:Key Supporting Climate TechnologiesBy deploying the“The Big 3”to build a clean energy foundation,the private sector can help maximize the abatement potentials of other climate techn
149、ologies.This approach alone,however,will not be sufficient to reach net zero.The timeline is too tight to allow for a sequential approach where companies can fixate on the“Big 3”before moving their attentions to other technologies.Instead,the“Big 3”must advance in parallel with coordinated initiativ
150、es to scale individual technologies across all systems.With too many options and too little time to bring every technology to scale,companies should take a targeted approach by analyzing the abatement potentials of technologies.Figure 14 illustrates standalone,best-case scenario projections of the c
151、umulative abatement impact of each selected technology between 2020 and 2050(“If we took every step to advance deployment of wind energy,assuming dominance over all competing technologies,how many Gt CO2e would it abate?”).13,14 The relative sizes of the bubbles provide directional guidance on each
152、technologys potential for impactalthough,in reality,each technologys abatement will depend on the deployment rates of other climate technologies,as well as investments supporting adoption.Figure 13.In addition to accelerating“The Big 3,”deploying a portfolio of“extension technologies”can drive clima
153、te abatement across end-use systemsFood&AgricultureAlternative Proteins,Livestock Methane Inhibitors and Digesters,Precision Agriculture Zero-Emissions Farm EquipmentTransportationBattery Electric Vehicles,Charging Networks,Electric Aviation,Energy Efficiency,Fuel Cell VehiclesBuildingsAlternative R
154、efrigerants,InsulationHeavy IndustryAdvanced Plastics Recycling,Concrete CCUS,Clean Iron and Steel,Enhanced Oil Recovery,Fossil Fuel Combustion CCS,Industrial Heat,Waste Methane CaptureFuel DistributionPipeplines,Leakage Detection Energy StorageCompressed Air,Clean Hydrogen,Pumped Hydro,Flywheel,Bat
155、teriesGrid ConnectivityGrid Infrastructure,Smart GridsCarbon RemovalDirect Air Capture(DAC),Enhanced Rock WeatheringFuelsBiofuels,Clean Hydrogen,Green Ammonia,SynfuelsElectricity GenerationBio-energy with CCS,Clean Hydrogen,Energy Efficiency,Geothermal,Nuclear,Solar,Small Hydropower,WindPathways to
156、Net Zero:The Innovation Imperative25Size of bubble=Cumulative expected climate abatement potential from 2020 2050(CO2e)10 Gt 50 Gt 150 Gt Heavy Industry Buildings Transportation Food&Agriculture Carbon Removal Electricity Generation Sustainable FuelsMethane Inhibitors&DigestersAlternative ProteinsWi
157、ndSolarNuclearOcean Wave PowerBattery Electric VehiclesInsulationAlternative RefrigerantsConcrete CCUSGreen SteelO&G Methane LDARDirect Air CaptureEnhanced Rock WeatheringWaste Methane CaptureBiofuelsFuel Cell Vehicles*Battery Electric VehiclesClean Ammonia*Advanced RecyclingFossil Fuel Combustion C
158、CUSIndustry HeatingGeothermalSmall HydropowerSynfuels*Electric AviationZero-emission Farm EquipmentFig.14 Understanding which climate technologies offer the largest opportunity for abatement is key to prioritizing actions and investments*Climate technology for which clean hydrogen is a direct input.
159、Clean hydrogen not included as a standalone technology to avoid duplication.CO2 equivalent estimates are used since greenhouse gases have varying levels of global warming potentials(GWPs).Methane and hydrofluorocarbons(used in refrigerants)linger in the atmosphere for a shorter duration compared to
160、CO2,but trap much more heat per molecule,making their abatement particularly urgent in the near-term.GWP100 used for methane:27x CO2;GWP20 included in AppendixGWP100 used for refrigerants:771x CO2;GWP 20 included in AppendixPathways to Net Zero:The Innovation Imperative26Climate technologies can als
161、o be evaluated against dimensions of technological feasibility and commercial viability.Figure 15 maps the technologies by sector across these dimensions using the technology innovation lifecycle defined in Table 4.15,16 Some technologies have reached peak maturity,like methane leakage detection and
162、 repair measures in the oil and gas industry.Others,like enhanced rock weathering,have barely made it past the theoretical stage to exist at the prototype stage.Understanding where a climate technology exists within the innovation lifecycle can inform which actions are most relevant to accelerating
163、its development and deployment.Keeping in mind the objective of maximizing abatement impact,technologies with the highest abatement potential should be prioritized for investment.In addition,since all sectors of the economy are responsible for a material share of global GHG emissions and will need t
164、o decarbonize,technologies with the highest absolute abatement potential per sector were prioritized to ensure each industry can apply at least one solution for its specific emissions scenario.This set of criteria,along with qualitative considerations given to externalities,resulted in the prioritiz
165、ation of“The Extended 10.”Technology Innovation LifecyleTechnology FeasibilityCommercial Viability1 PrototypeTechnology prototyped in a lab and proven in test conditionsVery low probability of success;not deployed2 DemonstrationWorking prototype in expected conditionsLow probability of success;not d
166、eployed3 CommercializationSingle full-scale functioning commercial unit is introducedAd-hoc deployment;unit attracts limited number of customers and financiers;not yet financially competitive4 Early AdoptionTechnology is commercially available and reliable but needs improvements to stay competitiveL
167、imited deployment;cost(e.g.,green premium)and performance gap remain;further integration with tech ecosystem required5 MaturityStable;technology has achieved predictable growth;Incremental learning-by-doing continuesDeployed at scale in the relevant market;at par(in terms of price and performance)wi
168、th carbon-emitting alternativesTable 4.Assessing Technology Feasibility and Commercial ViabilityAssessing levels of technology feasibility and commercial viability of climate technologies can inform recommendations for progressing innovationPathways to Net Zero:The Innovation Imperative27Fig.15 Some
169、 technologies are already mature,while others exist as prototypes543210Sustainable FuelsCommercial Viability0 1 2 3 4 5Technology MaturityGreen AmmoniaSynfuelsBiofuels543210543210Heavy IndustryBuilding TechnologiesCommercial ViabilityCommercial ViabilityGreen SteelIndustrial HeatMethane LDARTechnolo
170、gy Maturity0 1 2 3 4 50 1 2 3 4 5Technology MaturityFossil Fuel Combustion CCUSAlternative RefrigerantsInsulationConcrete CCUSAdvanced Plastics Recycling543210543210TransportationFood&AgricultureCommercial ViabilityCommercial ViabilityBattery Electric VehiclesTechnology Maturity0 1 2 3 4 50 1 2 3 4
171、5Technology MaturityFuel Cell VehiclesMethane Inhibitors&DigestersZero-emissions Farm EquipmentAlternative ProteinsPrecision AgricultureElectric Aviation543210543210Carbon RemovalElectricity GenerationCommercial ViabilityCommercial ViabilityEnhanced Rock WeatheringDirect Air CaptureTechnology Maturi
172、ty0 1 2 3 4 50 1 2 3 4 5Technology MaturitySmall HydropowerNuclearSolarWindWaste Methane CaptureGeothermalOcean Wave PowerGWP100(global warming potential)used for methane:27x CO2;GWP20 included in appendixGWP100 used for refrigerants:2200 x CO2;GWP20 included in AppendixPathways to Net Zero:The Inno
173、vation Imperative28Heavy Industry Green Steel“Green steel”refers to any low emissions steel production method.The lowest-emitting method is where direct reduction iron(DRI)is produced using“green”hydrogen(i.e.,produced via electrolysis powered by renewables).Concrete CCUSMethods of capturing a porti
174、on of the CO2 emitted during cement manufacturing and injecting it into fresh concrete during production as a form of storage.BuildingsAlternative RefrigerantsClimate-friendly refrigerants with lower GWP,including“natural”alternatives(e.g.,air,water,ammonia,carbon dioxide);also includes alternative
175、methods such as natural refrigeration.InsulationMaterials and methods used to reduce heat gains or losses through buildings envelope(roof,walls,windows,etc.).As a result,buildings consume significantly less energy for heating and cooling.TransportationTransportation Battery EVs&Charging NetworkAny v
176、ehicle that uses a battery pack to store the electrical energy that powers the motor.Batteries are charged by plugging the vehicle into an electric power source.Food&AgricultureAlternative ProteinsPlant-based and lab-cultured technologies(“lab grown meat”)offering protein-rich alternatives to meat p
177、roducts.Livestock Methane Inhibitors&DigestersMethane inhibitors reduce the methane production of livestock by targeting digestion processes.Anaerobic digesters treat manure and produce energy in the form of renewable energy.Precision AgricultureTechnology(e.g.,AI,drones,sensors)used to improve crop
178、 yields and assist with management decisions(e.g.,with regards to fertilizer use,irrigation).Carbon RemovalDirect Air CaptureCO2 extracted directly from the atmosphere.The CO2 can be permanently stored in geological formations,or be used(e.g.,combined with hydrogen to produce synfuels).ElectricityNu
179、clear Fission&FusionIn addition to fission,includes fusion(combining atomic nuclei to release energy),and small modular reactors(prefabricated units produced at much lower costs,and shipped and sited on locations not suitable for larger plants).Fig.16”The Extended 10”were prioritized based on their
180、expected climate impact and representation across sectorsPathways to Net Zero:The Innovation Imperative29Heavy IndustryHeavy industry contributes about 24%of global GHG emissions.17 Most emissions can be attributed to the chemical reactions and high-temperature environments required to fa
181、bricate some of the worlds most ubiquitous products such as steel,concrete and chemical feedstocks(e.g.,used in plastics,fertilizers).The sector is often described as“hard to abate”as production processes cannot be easily modified without altering the composition of inputs and/or outputs and high-te
182、mperature environments cannot be feasibly electrified with todays technology.However,known abatement technologies are being tested in the context of Heavy Industry processes.In addition to exploring the use of biomaterials and clean hydrogen as alternative chemical feedstocks to fossil fuel inputs,i
183、nnovators are piloting various carbon capture,utilization and storage(CCUS)techniques to promote the circularity and sustainability of manufacturing processes.Pathways to Net Zero:The Innovation Imperative30Concrete Carbon Capture and Utilization&Storage(CCUS)Concrete,the most widely used building m
184、aterial in the world,is produced by mixing cement,water and aggregates such as sand,gravel or crushed stones.18 Most of concretes emissions come from the manufacturing of cement,specifically from calcination,the chemical reaction that occurs when limestone and other materials are heated at very high
185、 temperatures in cement kilns.The kiln firing process powered by coal,oil or gas is responsible for most remaining cement emissions.While the heating process can largely be electrified,limestone cannot be easily replaced,nor can the calcination process be adapted,without sacrificing the integrity of
186、 the cement and the safety of concrete structures.As a result,concrete does not have a plethora of known solutions for abating its largest source of emissions,leaving CCUS technologies as the most promising techniques for reducing concrete emissions by 2050.CCUS technologies capture a portion of CO2
187、 emitted during the kiln firing of cement.The captured CO2 can then be utilized and injected back into the concrete itself to improve its strength(thus also reducing inputs required)or transported for geological storage.Concrete CCUS methods to extract CO2 include chemical absorption with amine-base
188、d solvents and calcium looping(in which a series of calcination reactions are performed on the kiln flue gas).The U.S.and Europe are also experimenting with an oxy-fuel capture technique capable of higher CO2 capture rates at the expense of requiring re-engineering to cement plants.All of these meth
189、ods are in prototype or early demonstration stages,with a handful of installations in operation today that have not yet achieved competitive costs nor full carbon capture efficiency.The first 100%capture plant is expected to launch in 2024.19 It is important to note that even 100%capture rates would
190、 not unlock concrete CCUS full abatement potential unless clean electricity is used to power the heating process.20There are encouraging signs of appetite to fund prototype and desmonstration pilot projects of promising CCUS technologies that can eventually develop into full-scale demonstrations,as
191、seen in consortiums such as Project CLEANKER(clean clinker).21 This 26-member consortium of research organizations,providers and construction companies is using the Buzzi Unicem Vernasca plant in Italy to demonstrate the efficacy of calcium looping CCUS.Companies can create momentum in their own sta
192、tes by advocating for legislation to establish end and interim cement decarbonization targets,as California demonstrated with a 2021 Bill directing its Air Resources Board to reduce the GHG intensity of cement by 2045.Where we are today Where we need to be in 2050(global yearly capacity)1%40-45%3.7
193、GtPotential CO2e emissions abated between 2020-2050$40-120/tCO2eMarginal abatement cost of CCUS technologiesConcrete Carbon Capture and Utilization&Storage(CCUS)1234512345Technology Feasability:Kilns Equipped with CCUS:Commercial Viability:Figure 17.The Extended 10:Concrete CCUSPathways to Net Zero:
194、The Innovation Imperative31Despite the likelihood that CCUS will play a large net zero role for both concrete and regions currently entrenched in fossil fuel use,its rash deployment could complicate industrial decarbonization efforts if proper guardrails are not established.Project developers must e
195、nsure that the captured CO2 that does not get injected back into concrete is adequately transported and stored over meaningful periods in geological sites.This process requires extensive technical expertise regarding the selection,monitoring and maintenance of storage sites in order to demonstrate s
196、ecure storage for incentives and permits.Similar oversight of the monitoring,reporting and verification of“sequestered”volumes in utilized CO2 in cement production is equally important,an issue that risks being overlooked in the absence of regulatory standards for projects.Near-term(2022-2025)Medium
197、-term(2025-2030)ACTConstruction&Real Estate Fund prototypes of amine-based post combustion CC,and commercial scale pilots of oxy-fuel CC Signal demand through low-carbon cement(through CCUS)procurement targetsAll As part of new buildings construction,demand that concrete CCUS be used(and allocate bu
198、dget accordingly);where not feasible,sponsor concrete CCUS pilot projectsADVOCATE Signal demand through low-carbon cement(through CCUS)procurement targets for public buildings Standards to ensure monitoring,reporting,and verification(MRV)of CO2 sequestration projects Construction of pipelines to con
199、nect captured CO2 to sequestration sites International carbon pricing mechanisms complemented by interim financial stimulus packages to compensate for asymmetric pricing pressures across regional marketsTable 5.Actions to innovate Concrete CCUSOTHER ESG CONSIDERATIONSCCUS projects have historically
200、overlooked local populations in their efforts towards global decarbonization.While cement facilities piloting CCUS are likely to receive subsidies for their efforts,the nearby communities directly affected by industrial pollution receive no compensation nor have any say in how CCUS externalities are
201、 managed.Business partners should selectively invest in projects that prioritize community engagement and suggest proactive solutions to protect the neighborhoods in their areas of operation.Pathways to Net Zero:The Innovation Imperative32Green SteelThe steel sector is the largest industrial consume
202、r of coal.22 The sectors greatest shot at emissions abatement is green steel,which refers to any low emissions steel production method.Recommendations to decarbonize this sector must consider the various steel production methods and infrastructure used today.Blast furnaces(BF)are by far the most wid
203、ely used steel production method today and use coal to convert iron ore into iron,then iron into steel.Electric Arc Furnaces(EAF)use electricity to melt(recycle)steel scrap into steel.The newest method“direct reduced iron”(DRI)reduces iron ore to iron through a chemical reaction which does not requi
204、re combustion.Today,most DRI plants use a mixture of hydrogen and CO2 but can be re-engineered to use green hydrogen so that water is emitted instead of CO2.23 Higher-emitting methods for producing green steel include using blue hydrogen(instead of green hydrogen)in DRI plants,as well as equipping D
205、RI plants with CCUS capabilities.24 To decarbonize the steel sector,EAF plants should be consistently powered with clean electricity,and BF-BOF plants should be retired as soon as possible and replaced by DRI plants that can be powered by hydrogen or equipped with CCUS capabilities.Most of the barri
206、ers to scaling the more sustainable green hydrogen-powered DRI stem from the availability of green hydrogen.Most DRI plant operators have indicated their intent to use green hydrogen“once available”and where feasible but have started using blue hydrogen in the meantime.This constraint further emphas
207、izes the need for widespread deployment of renewables to produce green hydrogen,and for careful approaches by both the private and public sectors in selecting the smartest end-uses for the limited green hydrogen supply(e.g.,where no other path to decarbonization,such as electrification,is available)
208、.Despite these barriers,steelmakers have recognized green hydrogen-powered DRI as the most viable route to realizing their emissions pledges,and green steel prototypes have already been championed in end-use sectors.Volvo announced“the worlds first vehicle made of fossil-free steel from SSAB”(a stee
209、lmaker leading in low-carbon technologies)in 2021,and subsequently the“first heavy-duty truck made from fossil-free steel”in 2022.Where we are today Where we need to be in 2050(global yearly capacity)$50/tCO2 for afforestation offsets)$129MAllocated to DAC by the DOE in fiscal 2022(up from$10M 2009-
210、2019)Direct Air Capture(DAC)1234512345Technology Feasability:Capturing CO2Commercial Viability:40 MtFigure 25.The Extended 10:Direct Air Capture(DAC)Pathways to Net Zero:The Innovation Imperative48Near-term(2022-2025)Medium-term(2025-2030)ACT Include DAC offsets in a portfolio approach to sourcing c
211、arbon offsets Collective“advance market commitments“to directly fund early-stage DAC companies,signal demand and decrease cost of DAC offsets Set and implement roadmaps to meet carbon-negative targetsADVOCATE Incentives(e.g.,grants,tax incentives,public procurement contracts,etc.)to fund large-scale
212、 DAC hubs to further improve technology and decrease marginal costs Standards to ensure monitoring,reporting and verification(MRV)of CO2 sequestration projects Approval for large-scale DAC hubs contingent on studies assessing impact of the hubs on local communities Accounting and reporting standards
213、 that recognize the value of CO2 captured and stored(vs.captured and sold to industry)R&D in carbon storage methodsOTHER ESG CONSIDERATIONSThere are concerns that DAC serves as an excuse to extend the life of fossil fuels infrastructure,weakens corporate climate targets and takes pressure off govern
214、ments to push climate policy.In addition,one use of CO2 captured through DAC is Enhanced Oil Bed Recovery(EOR),which leads to more fossil fuels being emitted.In addition to hindering climate action,prolonging the use of fossil fuels will perpetuate health inequities through increased air pollution i
215、n the low-income neighborhoods and communities of color that disproportionately live close to coal and power plants.Table 13.Actions to innovate Direct Air Capture(DAC)Until DAC is proven to effectively remove CO2 at significant scale and viable costs,uncertainties will remain regarding its contribu
216、tion to net zero.Renewables end-uses must be determined with caution,as DAC should not detract clean energy resources from more predictable,high impact solutions nor should DAC be used as an excuse to delay near-term climate investments.Pathways to Net Zero:The Innovation Imperative49Electricity Gen
217、erationAs emphasized with“The Big 3,”enabling access to clean energy at global scale is arguably the greatest unlock to decarbonizing our economy around 23%of global emissions are attributed to electricity and heat.44 While hotly debated,nuclear energy already plays a key role in decarbonization,pro
218、viding 50%of the U.S.clean electricity supply in 2021.45 While a variety of safety and public perception concerns must be addressed,nuclear is expected to be a key contributor to a decarbonized world.Nuclear EnergyWhether through fission(splitting atomic nuclei)or fusion(a less mature but safer meth
219、od of combining atomic nuclei),nuclear is an uninterrupted,plentiful source of clean energy with a significantly smaller land footprint than any other clean energy source:The DOE estimates that it would take around 3 million solar panels,or 430 wind turbines,to produce the same amount of power as a
220、typical commercial nuclear fission reactor.46 However,concerns around numerous issues have limited nuclear deployment in many jurisdictions over the past few decades.These include radiation from nuclear accidents,inadequate capacity to safely dispose of radioactive waste,the technologys contribution
221、 to nuclear weapons proliferation,very high capital costs(frequently running over budget)and the long time required to complete facility construction.Even transitioning from conventional fission plants to future fusion plants,which proponents have claimed as feasible for decades,is fraught with obst
222、acles.Fusion techniques rely on a steady supply of tritium fuel produced by fission plants that will eventually be shut down,making tritium one of the most expensive substances on the planet.A possible alternative approach is found in small modular reactors(SMRs),which are prefabricated fission reac
223、tor units that may help reduce high construction costs while providing greater flexibility in co-locating with renewables sources thanks to their size.For nuclear to secure its seat at the clean energy table,it must earn the publics favor.Utility companies can lead education campaigns with the help
224、of nonprofits that convene public and private sector stakeholders to develop policies and communications accelerating nuclear.These campaigns will be more effective if SMRs are recognized as a safer and less-costly solution contributing to clean energy.Companies can help achieve this by engaging in
225、public-private partnerships supporting SMR pilots,as seen in the DOEs cost share award approved for Carbon Free Power Project LLC that aims to provide up to$1.4B for the deployment of a 12-module power plant in Idaho.Where we are today Where we need to be in 2050(global yearly capacity)415 GW812 GW4
226、5 GtPotential CO2e emissions abated between 2020-50658 GWCapacity supplied by fleet in 2050 not existent today$107/tCO2eAdvanced nuclear(e.g.,SMRs and Gen IV reactors)MACNuclear Energy 23452345Technology Feasability:FissionFusionSmall Modular ReactorsCommercial Viability:Fissio
227、nFusionSmall Modular ReactorsFigure 25.The Extended 10:Nuclear EnergyPathways to Net Zero:The Innovation Imperative50OTHER ESG CONSIDERATIONSHealth and environmental risks are linked to the accidental release of radioactive nuclear waste(during transportation or disposal),although these risks impact
228、 health and environment on a smaller scale compared to fossil fuels.Overburdened communities bear the brunt of these facilities,given that the siting and permitting are typically in low-income areas.Table 14.Actions to innovate Nuclear EnergyNear-term(2022-2025)Medium-term(2025-2030)ACTUtilities Com
229、munication and education campaigns highlighting:The benefits of nuclear:low carbon footprint,role in balancing the grid when renewables are not available,significantly smaller land requirements compared to wind and solar Reduced risks of new technologies(fusion,SMRs)All Engage utilities to identify
230、optimal locations for SMR pilots based on expected energy needs(mostly from heavy industry)and utilities planned energy mixADVOCATE PPPs to accelerate design approval and increased funding for SMR pilots R&D funding to address tritium shortage issues R&D to reduce waste volumes and radioactivityPath
231、ways to Net Zero:The Innovation Imperative51Conclusion:Every Company has a Stake in the Net Zero FutureAny company or investor,regardless of sector,can participate in climate technology innovation.There are plenty of promising technologies and systems changes to act on,whether by adopting in-house p
232、rojects,partnering with other purpose-oriented companies to advance R&D or adding targeted investments to portfolios.It is important for the private sector to advocate for the policies that enable a dynamic climate innovation environment through strong demand signals and aggressive funding.Every eff
233、ort will be needed to build a net zero future,starting with investments in“The Big 3”:renewable electricity,grid connectivity and storage,and sustainable fuels.These investments must happen concurrently with the development,piloting and scaling of“The Extended 10”technologies to ensure the world is
234、armed with the abatement solutions needed to fulfill its net zero promise before time runs out.Companies ready to step outside of their organization and become leaders in global emissions abatement can champion a plethora of actionable initiatives recommended in this report.As they do so,its imperat
235、ive they manage innovation externalities with an equitable agenda.Marginalized populations have disproportionately shouldered the burden of anthropogenic climate change breathing the polluted air from nearby factories,working dangerous supply chain positions and enduring the brunt of increasingly pr
236、evalent natural disasters.The future must be different.Companies at the forefront of innovation may succeed in their climate pledges but will fail in their commitments to social responsibility if the planets most disadvantaged inhabitants continue to be left behind.Global commitments may refer to 20
237、50 as the deadline to limit global warming,but what we achieve in this Decisive Decade will indicate whether climate technologies and other solutions are on track to reach the finish line in time.The urgency of the climate crisis cannot be overstated at this point.Left untreated,it will cripple the
238、global economy but addressed promptly and effectively,it can continue to usher in a wave of new business opportunities,particularly for first movers in the transition to a low-carbon world.Pathways to Net Zero:The Innovation Imperative52AppendixGlossary of Climate Technologies|Heavy Industry(1/2)Tec
239、hnologyDescriptionTech.FeasibilityCommercial ViabilityEst.Abatement Potential(2020-2050)Calculation MethodologyOther SourcesAdvanced Plastics RecyclingAlso known as chemical recycling,refers to collection of technologies enabling more efficient recycling,with a primary focus on plastics recycling.Re
240、cycling solutions are also underway for textiles and batteries.1 Sorting limitations1 Unknown collection,logistics economics4.6 Gt CO2e-Nature(6.5 Gt CO2e addressable emissions by 2050)x(55%recycling rate)$120B Closed Loop Partners$40B McKinsey9%vs.59%-McKinseyConcrete CCUSChemical reactions to capt
241、ure CO2 produced during concrete production.In calcium looping,the CO2 is separated and then transformed into sustainable synthetic limestone aggregates that make up the concrete.In amine scrubbing,the CO2 is simply captured,not affecting the cement manufacturing process.1 Partial capture rate1 High
242、 costs relative to cement production12 Gt CO2e-IEA(30yrs cumulative emissions)(4%emissions by calcination)(40%global capacity can install CCS 2020-2050)(80%capture efficiency)$40-$120/t-IEA0-1%today-Industrial Sustainability Analysis Lab40-45%2050-IEAEnergy EfficiencyInnovation of existing processes
243、 to use less energy in providing the same amount of useful output from a service(e.g.,by upgrading motors,fans and heat pumps)5 Variety of efficiency measures implementable today5 efficiency measures use less outputs,achieving costs savingsN/AN/AN/AFossil Fuel Combustion CCSProcess of capturing CO2
244、at both coal and natural gas plant,before it is emitted into the atmosphere,and sequestering it into the ground.3 Power-intensive processes,some of which cannot be retrofitted to older coal plants3.5 Post combustion,chemical absorption at early adoption stage4.9 Gt CO2e-IPCCApproximated lower bound
245、IPCC estimate to address specificity of tech among all CCS techsN/APathways to Net Zero:The Innovation Imperative53Glossary of Climate Technologies|Heavy Industry(2/2)TechnologyDescriptionTech.FeasibilityCommercial ViabilityEst.Abatement Potential(2020-2050)Calculation MethodologyOther SourcesGreen
246、SteelUse of electrolytic(green)hydrogen to produce the high heat needed for the direct reduced iron process,which is essential to steel making.3 Ore reduction chemistry not fully optimized3 Availability of electrolytic hydrogen12 Gt CO2e Hydrogen CouncilN/A$150/t CO2e-EDF$278B-Bloomberg$35/Mwh;$2.7T
247、-IEA4%today-Alcimed31%2050-EntrepreneurIndustrial HeatSubstitution of electricity as the primary energy source for industrial heat processes(p to approximately 1,000 degrees Celsius),replacing carbon-emitting energy sources such as coal.Electrification does not require fundamental changes in industr
248、ial processes,but merely the replacement of existing equipment(e.g.,boiler,furnace)with electric equipment.4 Electric equipment supporting heat processes up to 400 Celsius are commercially available;electric equipment for processes up to 1,000 degrees have been effectively piloted for certain applic
249、ations4 Until recently,low oil prices have remained a barrier to adoption3.9 Gt CO2e EDF MACC(260 Mt in 2050)(30 years)(ramp-up reduction factor:0.5)N/AMethane Leakage Detection and Repair(LDAR)Supplementing of current techniques(on the ground inspections with optical gas-imaging cameras)with contin
250、uous monitoring sensors,drones and satellites to maximize efficacy of detecting fugitive methane sources during oil and gas production and transportation5 LDAR technologies proven at scale5 Sale of captured methane outweighs inspection costs(i.e.,it would be financial beneficial for O&G producers to
251、 implement LDAR)GWP 100:12 Gt CO2eGWP20:38 Gt CO2e IEA(14.5 Mt CH4/year)x(27GWP)x(30 years)=11.76 Gt CO2eN/APathways to Net Zero:The Innovation Imperative54Glossary of Climate Technologies|BuildingsTechnologyDescriptionTech.FeasibilityCommercial ViabilityEst.Abatement Potential(2020-2050)Calculation
252、 MethodologyOther SourcesAlternative RefrigerantsThe replacement of hydrofluorocarbons(HFCs)used in a variety of applications by alternative refrigerants with significantly lower global warming potential including ammonia,carbon dioxide,propane,and isobutane.4 Preferred“natural”alternatives each com
253、e with trade-offs,including safety,cost,and efficiency considerations4 As a result of the 2016 Kigali Accord,new systems supporting alternative refrigerants are available globally;In some cases,retrofitting existing appliances reduces performanceGWP 100:40 Gt CO2eGWP20:143 Gt CO2e IEA(53 Gt CO2e 202
254、0-2060)x(0.75)=39.75 Gt CO2eGWP20 estimated at 2690 x by IPCC$284B EPA2200 GWP today vs.150 GWP 2050-IEADemand ResponsePrograms enabling buildings to reduce or shift electricity usage during periods of stress or constraint.4 Lack of relevant IT communication tools5 smart control and automation syste
255、ms enable cost savings N/AN/AN/AEnergy EfficiencyInnovation of existing processes to use less energy in providing the same amount of useful output from a service(e.g.,installing rainwater storage systems as water source for green locations).5 Variety of efficiency measures implementable today5 effic
256、iency measures use less outputs,achieving costs savingsN/AN/AN/AInsulationAny object in a building used as insulation for thermal management.By installing insulation,buildings use less energy for heating and cooling.Related technologies include dynamic glass which automatically adjusts the tint leve
257、l and can block more than 85%of unwanted solar radiation.Green roofs provide insulating layer of vegetation on top of residences and commercial properties to reduces energy load and emissions related to heating and cooling buildings.Cool roofs use light reflecting materials or paints to reduce heat
258、of roof surface from sunlight.5 Even though a wide number of material and methods exist today that generate significant efficiencies,R&D continues to bring about new efficiency gains4 Many insulation material remain expensive relative to alternativesAssessing and implementing insulation materials an
259、d techniques requires skilled architects and engineers,who can be costly and rare21 Gt CO2e IPCC2020-2030(0.88 Gt CO2e)x(0.4 ramp-up reduction factor)x(20 years)+2030-2050(0.88)x(20 years)40%-GreenBiz1%today vs.100%2050 World Green Building Council15 months National Insulation Association(calculated
260、 avg.)Pathways to Net Zero:The Innovation Imperative55Glossary of Climate Technologies|TransportationTechnologyDescriptionTech.FeasibilityCommercial ViabilityEst.Abatement Potential(2020-2050)Calculation MethodologyOther SourcesBattery Electric VehiclesVehicles with electric motors powered by energy
261、 stored in battery package.They require connection to electrical network to recharge.4 Not yet proven for medium-duty3 Unaffordable to many48 Gt CO2e Bloomberg New Energy Finance(1.6 Gt CO2e/year)x(30 years)=48 Gt CO2e)$832B Allied Market Research$7.5B Axios$19/t CO2e;$156/t CO2e-EDF7.2%today vs.95%
262、2050 Speed&ScaleCharging NetworksInfrastructure system of charging stations to recharge battery electric vehicles.4 Issues with reliability and range,slow charging speeds4 Charging infrastructure requires scalingAbatement potential not included to avoid double counting with EVsN/AN/AClean ShippingRe
263、placement of fossil fuels with sustainable alternatives to power transport in maritime sector,including ammonia made from green/blue hydrogen(in liquid form or in internal combustion engines),biofuels,hydrogen fuel and fuel cells,and even battery packs.3 Ammonia ignition challenges,relative fuel cel
264、l efficiency3 No incentives for prioritization over LNG;hydrogen bunkering network nonexistentAbatement potential not included to avoid double counting with sustainable fuel(e.g.,clean ammonia,biofuels)N/AN/AElectric AviationElectrifying power supply,storage,and propulsion through solar cells,microw
265、aves,external power cables;batteries,ultracapacitors,and fuel cells;and electric motors,hybrid power,and magnetohydrodynamics(respectively).1.5 Battery density restricts flight range1.5 Prototypes at air taxi level,not commercial passenger0.5 Gt CO2e Mission Possible PartnershipN/AN/AEnergy Efficien
266、cyInnovation of existing processes to use less energy in providing the same amount of useful output from a service(e.g.,ongoing increases in miles per gallon ration in passenger vehicles).5 Variety of efficiency measures implementable today5 Efficiency measures use less outputs,achieving costs savin
267、gsN/AN/AN/AFuel Cell VehiclesFuel cell vehicles are powered by a fuel(usually hydrogen)that feeds into an onboard fuel cell“stack”that doesnt burn the gas,but instead transforms the fuels chemical energy into electrical energy.This electricity then powers the cars electric motors.3 Many technologies
268、 are in prototype stage;lower lifetime durability than ICEs3-Commercial operation for bus,light-duty vehicles13 Gt CO2eHydrogen CouncilN/AN/A Pathways to Net Zero:The Innovation Imperative56Glossary of Climate Technologies|Food&AgricultureTechnologyDescriptionTech.FeasibilityCommercial ViabilityEst.
269、Abatement Potential(2020-2050)Calculation MethodologyOther SourcesAlternative ProteinsPlant-based and lab-cultured technologies offer protein-rich alternatives to meat products.Behavioral shifts towards alternative proteins will help avoid methane emissions as well as deforestation,saving carbon sin
270、ks.With the world population expected to reach 10 billion by 2050,adoption of alternative proteins is imperative to reach NZ50.4 Plant-based techs.proven at scale;commercial-scale pilots for lab-cultured techs4 Availability of plant-based techs.in restaurants and grocery stores for developed countri
271、es at a premium;Lab-cultured techs not yet legal in the US17 Gt CO2e Frontiers(0.583 Gt CO2e/year)x(30 years)=17.49 Gt CO2e1 in 4 Gallup$290B BCG66%-Food Navigator USALivestock Methane Inhibitors and DigestersMethane Inhibitors aim to reduce the methane production of livestock through technologies t
272、argeting livestock digestion processes(i.e.,enteric fermentation)through feed additives and livestock genomics(breeding).Larger farms can also install anaerobic digesters to treat manure and produce renewable fuel that can be converted and sold as electricity.The benefits of these technologies are d
273、ependent on capture of existing manure methane.New manure methane generation and capture require extremely low leakage to result in climate benefits.3-Feed additives can affect animal weight and productivity3-Anaerobic digesters are unaffordable for smaller farmsGWP100:13 Gt CO2e GWP20:42.5 Gt CO2e
274、IOPScience(53 Tg CH4 manure digesters for pigs+86 Tg CH4 sheep feed changes and breeding+349 Tg CH4 cattle feed changes,breeding,digester)x(27 GWP)=13.18 Gt CO2eGWP20=87x$400K-$5M Anaerobic Digestion Community25 40%-California Air Resources BoardPrecision AgricultureThe process improving crop yields
275、 and assisting management decisions using high technology sensors,analysis tools,and satellite-based farm analytics.It ensures the effective management of fertilizers and irrigation processes.4-IoT connection limitations in rural areas2-Lagging adoption due to techs.costs and very-high industry frag
276、mentation9.8 Gt CO2eWEF(0.05%abatement)x(195 Gt CO2e agriculture emissions)$40B-$60B;$500B-McKinseyZero-Emission Farm EquipmentReplacement of tractors and combine harvesters using fossil fuels with electric battery vehicles.2 Smaller-sized farm equipment commercially available;reliability and durabi
277、lity of batteries remains an issue(in particular given extended usage)2 Financial incentives required to offset high-capital and encourage early retirement of existing equipment;lack of charging infrastructure0.54 Gt CO2eMcKinseyN/AN/APathways to Net Zero:The Innovation Imperative57Glossary of Clima
278、te Technologies|Grid ConnectivityTechnologyDescriptionTech.FeasibilityCommercial ViabilityEst.Abatement Potential(2020-2050)Other SourcesLoad flexibilityThe ability to adjust energy usage to accommodate for fluctuating demand.Applications include demand charge management,time-of-use price arbitrage,
279、demand response,and power procurement optimization.Load flexibility will be an important part of the net zero transition narrative as electric vehicles increase grid demand.5 technologies proven at scale;it is up to policymakers and utilities providers to adopt across geographies5 Achieving cost sav
280、ings in transmission and distribution services through more efficient energy deploymentAbatement potential not included to avoid double counting with renewables techs$14T grid investment S&P GlobalLong-distance HVDCsHVDC(high-voltage direct current)is a high capacity,long-distance transmission syste
281、m with greater efficiency than HVAC(high-voltage alternating current)transmission systems.Innovations to converters accommodate for renewables variability,allowing for their integration into the grid.4 Ongoing improvements to circuit breakers enabling smoother operation of HVDC grids4 Higher up-fron
282、t costs,but greater lifetime cost savings compared to HVACN/ASmart GridsAn electricity supply network that uses digital communications technology to detect and react to local changes in usage.It enables demand response,the change in the power consumption of electric utility customers residential or
283、commercial-to better match the demand for power with the supply.5 Technology proven at scale4 Adoption depends on local jurisdictions approval;despite lifetime savings,upfront costs of some“smart”technologies remains a barrier to potential be users(utilities are offering incentives to mitigate)$15%g
284、rid digitalization today vs.50%in 2050-IEAPathways to Net Zero:The Innovation Imperative58Glossary of Climate Technologies|Energy Storage TechnologyDescriptionTech.FeasibilityCommercial ViabilityEst.Abatement Potential(2020-2050)Other SourcesCompressed AirAir compressed into a cavern underground cre
285、ates energy through a turbine upon release.4 Capable of large scale storage up to 1000 MWe4 High capital costs,lack of awareness by utility plannersAbatement potential not included to avoid double counting with renewables techsN/AClean HydrogenThe process of producing and storing clean hydrogen(as e
286、ither a gas,a liquid or by absorption within other solids),to be used as fuel,feedstock.Hydrogen can be re-converted into electricity at a later time,creating energy.Includes green hydrogen(hydrogen produced by splitting water by electrolysis,producing only hydrogen and oxygen)and blue hydrogen(hydr
287、ogen produced from natural gas and supported by carbon capture utilization and storage.The CO2 generated during the manufacturing process is captured and stored permanently underground.The result is low-emissions hydrogen that produces no CO2).3-Hydrogen is a highly corrosive gas;leakage risks durin
288、g storage must be addressed2-electrolyzers made from supply chain critical elements10GW today vs.930GW 2050-NRELPumped HydroProcess of pumping water into reservoir at high elevation and harnessing the energy created when the water is released at lower elevation.5 Technology proven at scale5-Possible
289、 water loss through evaporation;location dependent(requires difference in height between reservoirs)N/AFlywheelFlywheel convert excess electricity into kinetic energy using a motor to spin a large flywheel and convert it back to electrical energy using a motor as a generator).4 short discharge times
290、 require multiple flywheel installations for large scale applications4-need investments in utility-scale unitsN/ABatteriesNew generation of batteries that are cheaper,can pack in more energy and charge faster.Enabled by alternative materials and new designs.3 Li-ion alternative chemistries can degra
291、de more quickly upon recharge3 Commercial deployment is fragmented across geographies;high manufacturing costs at R&D stage$277B BloombergNEFPathways to Net Zero:The Innovation Imperative59Glossary of Climate Technologies|Electricity Generation(1/2)TechnologyDescriptionTech.FeasibilityCommercial Via
292、bilityEst.Abatement Potential(2020-2050)Calculation MethodologyOther SourcesGeothermalThe process of using heat from the earths core to heat water or another working fluid.The working fluid is used to turn a turbine of a generator,producing electricity.4-Extraction of geothermal energy releases limi
293、ted amount of GHG(e.g.,hydrogen sulfide,carbon dioxide,methane).4 Location specificity make it hard to scale and high upfront costs remain a barrier8.0 Gt CO2eSource:IPCC2020-2030(0.73 Gt CO2e)(10 yrs)(0.4 ramp-up reduction factor)+2020-2050(0.73)(20yrs)+2020-2030(1.11 Gt CO2e)(10)(0.4)+2020-2050(1.
294、11)(20)(1.5 scaling multiplier)/2N/ANuclearMost established technology is nuclear fission,the process of splitting atomic nuclei to power steam turbines that generate electricity.Emerging technologies include Small Modular Reactors(SMRs),prefabricated units can be shipped and sited on locations not
295、suitable for larger nuclear power plants,and nuclear fusion,the process of combining atomic nuclei to release energy.4 Fission:tech.proven effectively at scale2 Fusion:A handful of prototype reactors exist,but the first commercial plant isnt expected to be functional before 2035-403 SMR:One function
296、ing SMR and 70+SMRs in development around the world with varied outputs and application3 Fission:Plants takes years and increasingly run over budget(e.g.,increasing risks regulations)2 Fusion:Pilots already significantly over budget3 SMRs:Offer savings in cost and construction time due to simpler de
297、signs,limited customization requirements,and reduced fuel requirements(vs.fission plants)45 Gt CO2eSource:IPCC2020-2030(1.32 Gt CO2e)(10 yrs)(0.4 ramp-up reduction factor)+2020-2050(1.32)(20yrs)(1.5 scaling multiplier)658 GW IEA$107/t CO2e-EDFOcean Wave PowerProcess of converting kinetic energy from
298、 the motion of ocean waves and tides into electricity through devices acting as underwater wind turbines.1-Novel device prototype testing in real sea conditions1-Most expensive of renewables due to intrinsic design challenges11 Gt CO2eOcean PanelN/AN/ASmall HydropowerThe development of hydroelectric
299、 power on a scale suitable for local community and industries,or to contribute to distributed generation in a regional electricity grid.4-Tech.effective;requires careful design and installation4-Expanding in remote communities5.6 Gt CO2eEnergy.govN/AN/A Pathways to Net Zero:The Innovation Imperative
300、60Glossary of Climate Technologies|Electricity Generation(2/2)TechnologyDescriptionTech.FeasibilityCommercial ViabilityEst.Abatement Potential(2020-2050)Calculation MethodologyOther SourcesSolarThe use of the suns energy using photovoltaic cells in solar panels and transparent photovoltaic glass to
301、generate electricity.5-Full functionality with ongoing enhancements to materials and processes4-Institutional(e.g.,inefficient legal frameworks),and technical barriers(e.g.,lack of skills to install solar PVs)must be overcome134 Gt CO2eNature180 Gt CO2e+12 Gt CO2e(removal of trade barriers)x(0.75 re
302、duction factor for 40 year estimate)=134$57B(from$280B)IEA$4.2T(from$9.5T)BNEF821TWh today vs.23,469TWh 2050 IEA$31/t CO2e-EDFWaste Methane CaptureAnaerobic treatment of municipal and industrial waste to recover methane,which can be transported through pipeline systems as renewable gas that can be c
303、onverted and sold as electricity.5-85%efficiency in closed landfills4 Installation costs of gas-to-electricity technologies at landfillsGWP100:28 Gt CO2eGWP20:90.5 Gt CO2e IOPScience(778 Tg CH4 municipal waste+262 Tg CH4 Industrial waste)x(27GWP)=28.08 Gt CO2eGWP20=87xN/AWindThe process of collectin
304、g and converting the winds kinetic energy through turbines(onshore or offshore)to generate electricity.5-Full functionality with ongoing expansions in processes(e.g.,onshore)4 High upfront and maintenance costs(particularly offshore)remain154 Gt CO2eMDPIN/A$223B(from$280B)IEA$5.3T(from$9.5T)BNEF1592
305、TWh today vs.24,785TWh 2050 IEA$11-40/t CO2e-EDF Pathways to Net Zero:The Innovation Imperative61Glossary of Climate Technologies|Sustainable FuelsTechnologyDescriptionTech.FeasibilityCommercial ViabilityEst.Abatement Potential(2020-2050)Calculation MethodologyOther SourcesBiofuelsAny fuel that is d
306、erived from biomassthat is,plant or algae material or animal waste.It includes biokerosene(“Sustainable Aviation Fuel”;SAF)mixed with aviation kerosene which is commonly produced from vegetable oils(such as soy),animal fats,and urban waste.4-Innovation needed to increase conversion rates of waste as
307、 input4-More expensive than subsidized fossil fuels;limited input with no negative externalities22 Gt CO2eIPCC2020-2030(0.35 Gt CO2e)(10 yrs)(0.4 ramp-up reduction factor)+2020-2050(0.35)(20yrs)+2020-2030(1.05 Gt CO2e)(10)(0.4)+2020-2050(1.05)(20)(1.5 scaling multiplier)/255Mt today vs.750Mt 2050 IE
308、A230B gallons(all jet fuel)-DOE$33/t CO2e-EDFClean AmmoniaAmmonia produced using green hydrogen(through electrolysis).Used as fertilizerammonias traditional roleor as an energy-dense fuel(more easily stored and transported).It can also be converted back into hydrogen.3-Production via solar power and
309、 electrolysis in testing phase2-Early-stage global pilots for functional commercial plants10.8 Gt CO2eSiemens(0.36 Gt CO2e)x(30 years)36 Mt today(assumes 20%used for transport,since 80%is given for fertilizer usage)International Center for Sustainable Carbon vs.108 Mt by 2050(conversion of tons to t
310、onnes)Ammonia Energy AssociationSynfuelsGeneric term applied to any manufactured fuel with the approximate composition and comparable specific energy of a natural fuel.Sustainable synfuels use biomass produced by photosynthesis or clean hydrogen.It can be used in internal-combustion engines.2-Techni
311、cal difficulty in scaling MW capacity of pyrolysis plants1-Signed offtake agreements with airlines but not viable without policy support3.8 Gt CO2eIEAN/A168 Gt/CO2e EDF MAC Pathways to Net Zero:The Innovation Imperative62Glossary of Climate Technologies|Carbon RemovalTechnologyDescriptionTech.Feasib
312、ilityCommercial ViabilityEst.Abatement Potential(2020-2050)Calculation MethodologyOther SourcesDirect Air Capture(DAC)Extracts CO2 directly from the atmosphere.The CO2 can be permanently stored in geological formations or be used,for example,in food processing(e.g.,to carbonate beverages)or combined
313、 with hydrogen to produce synfuels.However,to maximize climate benefit,most captured CO2 will need to be sequestered,thereby achieving negative emissions(if properly managed,geological storage can retain 99%of sequestered CO2 for over 1,000 years).3-More large-scale demonstrations are needed to refi
314、ne the technology and reduce the risks of CO2 storage2-Higher cost and energy needs than other sequestration methods due to lower atmospheric concentration of CO2)20 Gt CO2eIEA(85 Mt CO2/yr by 2030)(10)+(980 Mt CO2/yr by 2050)(20)$250-600-WRI$129M-WRI40 Mt today vs.980 Mt-IEAEnhanced Rock Weathering
315、Accelerates natural process of rock weathering(natural process where CO2 in rainwater reacts with rocks and is then locked away in carbonate form for over 100,000 years)by crushing rock into rock dust,increasing surface area and thereby causing weathering process to happen faster(and accelerate sequ
316、estration of CO2 into rock).1-Uncertainty around soil weathering rates and land-ocean transfer of weather products1 Deployment is not considered viable in near-term15 Gt CO2eNature(0.5 Gt CO2e/year)x(30 years)N/A Pathways to Net Zero:The Innovation Imperative63Endnotes1“The latest IPCC report unpack
317、s the role of innovation.Here are five key takeaways.”Environmental Defense Fund,April 15,20222 “Clean energy innovation needs faster progress,”IEA 3 BAU Scenario uses IPCC emissions scenario where policies existing today are projected to 2050,assuming no further policy support4 Graphic uses emissio
318、ns data as calculated by Project Drawdowns“Scenario 1.”While Drawdown does not explicitly cite GWP numbers it used for methane abatement solutions in its technical summaries,it can be assumed that GWP is around 27-30(using 100-year range).Drawdown cites the GWP of current refrigerants as in the 2000
319、s.Since the analysis in this report was conducted,the Inflation Reduction Act(IRA)has been signed into law.While this will change the landscape for clean energy and climate in the U.S.,the guidance presented here around for how companies should think about innovation and where they should prioritize
320、 action is still germane in this changing environment5“Covid-19,Crypto,and Climate,Chapter 3:Investment Funds:Fostering the Transition of a Green Economy,”International Monetary Fund,October 2021.6 Technologies shown represent prominent examples for each sector and are not an exhaustive list7 Carbon
321、 capture technologies exist in a variety of sectors,but for the purposes of this visual refers to industry-agnostic removal mechanisms8“Wind turbine blades cant be recycled,so theyre piling up in landfills.”Bloomberg.February 20209“Save money with solar energy for your business.”The Balance,June 25
322、201910“Towards underground hydrogen storage:A review of barriers,”ScienceDirect,July 202211 Biofuels can be considered high-integrity when they credibly reduce emissions,adhere to strong environmental and social safeguards,and are accurately accounted for to avoid double-counting of emissions reduct
323、ions.High-integrity biofuels should have zero or very low risk of causing indirect land-use changes,meaning they do not divert edible crops or land used to grow food,and do not contribute to deforestation or habitat destruction.Their production should respect human rights,land rights and water right
324、s,and should contribute to the UNs Sustainable Development Goals12 In 2020,$472B in explicit subsidies were allocated to coal,oil and natural gas globally13 Asterisks in visual refer to climate technologies for which clean hydrogen is a direct input.Clean hydrogen as a technology itself is not inclu
325、ded as a visual bubble to avoid duplication14 CO2 equivalent estimates are used since GHGs have varying levels of global warming potentials(GWPs).Methane and hydrofluorocarbons(used in refrigerants)linger in the atmosphere for a shorter duration compared to CO2,but trap much more heat per weight,mak
326、ing their abatement particularly urgent in the near-term.GWP100(i.e.,over 100 years)used for methane is 27x CO2;GWP100 used for todays refrigerants is 2200 x CO2;GWP20 values for both are included in Appendix15 Bubble sizes show relative magnitudes of abatement potential within each sector16 Technol
327、ogy innovation lifecycle stages adapted from IEAs extended Technology Readiness Level(TRL)scale17“Total anthropogenic direct and indirect GHG emission for the year 2019(in GTCO2eq)by sector and sub-sector,”Figure TS.6 in IPCC AR6 WGIII18“Cement and concrete as an engineering material:A historical ap
328、praisal and case study analysis.”ScienceDirect,May 201419“CCS at Norcem Brevik:Background,”Norcem20 Additionally,CCUS abatement potential does not account for transport of captured CO2Pathways to Net Zero:The Innovation Imperative6421 Clinker is a binder material produced in the kilning stage of cem
329、ent production,responsible for the majority of cements costs and emissions22“Iron and Steel Technology Roadmap,”IEA,October 202023 Any DRI process will result in emissions unless it uses electrolytic(green)hydrogen,meaning blue hydrogen DRI must be equipped with carbon capture capabilities to be con
330、sidered a sustainable alternative24 The CCUS method most commonly used in DRI is chemical adsorption.Physical adsorption is expected to be a less costly CCUS technique but requires more pilot projects for DRI applications25“Iron and Steel Technology Roadmap,”IEA,published in October 2020 Technology
331、report26“Total anthropogenic direct and indirect GHG emission for the year 2019(in GTCO2eq)by sector and sub-sector,”Figure TS.6 in IPCC AR6 WGIII27“IPCC includes GWPs for Hydrocarbons in New Report,”Hydrocarbons21,August 202128“Alternative Refrigerants,”Project Drawdown29 “Have we reached the tippi
332、ng point for CO2 refrigeration systems?”Henderson Engineers,June 202030 A net zero building earns its title by producing enough renewable energy to meet its annual energy consumption requirements.This can be done through a variety of efficiency measures in addition to insulation,including water cons
333、ervation and digitization to optimize space management 31“Total anthropogenic direct and indirect GHG emission for the year 2019(in GTCO2eq)by sector and sub-sector,”Figure TS.6 in IPCC AR6 WGIII32“Charting the course for early truck electrification,”RMI,202233“A severe EV battery shortage could happen in less than 3 years,”PR Newswire,May 202234“Total anthropogenic direct and indirect GHG emissio