Decarbonisation levers
Decarbonization levers refer to measures and strategies that enable companies to reduce their CO₂ emissions. They include technological, organizational, and process-based approaches that help accelerate the transition to a lower-carbon economy.
Decarbonization levers are essential tools for companies to achieve their climate goals and sustainably reduce CO₂ emissions along their value chain. They are often part of comprehensive decarbonization strategies and can be applied across various areas of an organization and its production processes.
Key Decarbonization Levers Include
- Energy Efficiency: Optimizing production processes and operating systems to minimize energy consumption
- Switching to Renewable Energ: Using electricity from wind, solar, or hydropower to replace fossil fuels
- Material Efficiency: Reducing raw material consumption and waste production through optimized designs and processes
- Substitution of Fossil-Based Materials: Replacing fossil fuels or materials with low-carbon alternatives such as green hydrogen or recycled material
- Decarbonizing the Supply Chain: Collaborating with suppliers to achieve emission reductions in upstream processes
- Circular Economy: Promoting closed-loop material cycles through recycling, reuse, and product take-back systems
- Investing in New Technologies: Developing and implementing innovative technologies that can reduce or avoid emissions, such as Carbon Capture and Storage (CCS)
Implementation and Regulatory Requirements
The choice and implementation of the right decarbonization levers depend on the industry, corporate objectives, and available resources. These levers are not limited to internal processes but also extend to external partnerships and market strategies.
For manufacturing companies, decarbonization levers are critical for maintaining competitiveness and regulatory compliance in an increasingly regulated market. Regulatory frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and mechanisms like the Carbon Border Adjustment Mechanism (CBAM) require detailed documentation of CO₂ reductions across the value chain.
