Time’s Ticking: Navigating the Critical Shift to Renewables

Huffington Post

In this series we’ll be discussing the challenges facing companies as they navigate the transition to renewable energy across their entire emissions spectrum (including scope 1, 2, and 3), as well as the solutions for a successful transition. Corporates will gain deeper insight into selecting the most appropriate Renewable Energy Technologies and what a tailored strategy looks like.

Thermometer rising: current path points to 3-degree increase

The urgency of the climate crisis is in plain sight. Once viewed as rare occurrences, unprecedented CO2 levels in the last 150 years have led to frequent extreme weather phenomena in the form of droughts, wildfires, floods and more.

If we want to sustain life as we know it, science has recommended leaders and businesses of the world to reduce emissions in line with a 1.5-degree temperature increase. To achieve this, things must change; with the current trajectory we are looking at a 3-degree temperature increase by the end of the century.

Ambition isn’t enough! Plans must address 5 key challenges

As a response to this predicament, we see a growing commitment. Western governments are putting programs and incentives in place to triple the implementation of renewable energy within the next decade, setting national targets to reduce net emissions by 50+% by 2030. Businesses all over the world are committing to similar full scope absolute reduction targets, many committing to net-zero by 2050.

With 2030 appearing on the horizon, we have just 6 years to bring these decarbonization goals to fruition. However, carbon emission reduction seems to have halted; the implementation of renewable energy and low-carbon solutions is much slower than needed to reach the goals. So, what’s the plan? How are companies developing the roadmaps and investing in solutions that will cut their emissions in half by 2030, not only within their own operations (scope 1 and 2), but also with respect to their supply chain and other indirect emissions (scope 3)?

For corporates aiming to transition to renewables on a large scale, unlocking the following challenges is key:

  • Executing successful renewables implementation demands significant financial investments and unwavering commitment, regardless of whether it’s approached through CAPEX or OPEX solutions.
  • Attaining enduring success in transitioning to renewables hinges on political and financial stability, paired with transparent practices.
  • Pivotal for widespread adoption, the operational country must boast accessible proven and scalable technologies, along with suitable procurement models, catering to both large and mid-size companies.
  • With Thermal demand accounting for approximately 50% of corporate emissions, achieving emission reduction goals     
  • Navigating the challenge of supply chain and upstream Scope 3 emissions as a major carbon contributor means that corporates need to rely on suppliers rapidly decarbonizing while upholding competitive pricing.

These challenges demand comprehensive consideration and evaluation tailored to a company’s business model, corporate landscape, encompassing global presence, and future outlook. We take great pride in the work we have done accompanying corporates on their renewable energy transition journey.

If you need support unlocking your renewable energy and emission reduction potential, connect with our team, check out our latest case studies, or join our next webinar!

Rasmus Nedergaard

Managing Director, act renewable

Rasmus has been working in the field of environmental management in the private sector for the past two decades. Rasmus has worked in strategic and management positions for international corporations, reducing their carbon footprint through renewable energy transition and energy efficiency. Rasmus is currently leading the international team of renewable energy transition advisors at act renewable GmbH, and is directly engaged with clients and their executive management on renewable transition topics.

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For business inquiries, connect with our team at contact@actrenewable.net

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