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The transition to a sustainable future, characterised by Net Zero emissions, is inevitable according to the KPMG report Decarbonising growth - Managing the transition launched at its 11th annual energy conclave ENRich 2020

“Large global corporations have started to urge their suppliers to reduce their carbon footprint as part of their own decarbonisation strategy, which is likely to result in a domino impact on smaller nations and companies. Harder to abate sectors are also taking bolder steps to tackle the climate agenda,” the report said.

“Sector specific measures on the demand side and energy efficiency will continue to see impact and largely align with investment and retrofit cycles. CCUS (Carbon capture, utilisation and storage) and hydrogen will co-exist to play a key balancing role in hard to decarbonise sectors with impact felt post 2030,” the report added.

Suggesting the need for support to enable this, the report said, “Electrification of end use sectors such as transport and industries will need to be supported by massive adoption of Renewable Energy and its integration will require both batteries and hydrogen to come in based on application required, ranging from frequency response, to seasonal storage.”

“CCUS will find a strong focus in decarbonisation of industrial sectors especially hard to abate sectors for capture of emissions and deployment in blue hydrogen production. Green hydrogen may cannibalise some of the growth of CCUS but may co-exist as hydrogen will not be able to cater to all industrial processes,” the report noted.

Identifying the sectors where more emphasis will need to be laid, the report said, “Harder to abate sectors are also taking bolder steps to tackle the climate agenda – The biggest hurdles in achieving meaningful decarbonisation may yet be faced by harder-to-abate industries such steel, cement, aviation, shipping, among others…. The transition to Net Zero will require a significant transformation across the organisation with massive reallocation of capital which is likely to create unprecedented challenges.”

“Carbon capture, utilisation and storage (CCUS) is a critical technology for decarbonising hard to abate sectors (for instance, steel, cement) and is one of the few technologies that can abate emissions from fossil fuel-based power generation…While renewable energy adoption is planned in a big way, it may not completely usurp the stranglehold of coal and gas-based power plants for many decades,” the report added.

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