Research Overview

During the 2021 United Nations Climate Change Conference (COP26), the European Union and the United States announced their commitments to become carbon neutral by 2050, while China and India, the first- and third-largest emitters, plan to become carbon neutral by 2060 and 2070, respectively. Low-income countries will struggle to reduce their carbon footprint and meet their decarbonization goals because of the lack of regulatory frameworks, public and private investments, and technological advances. To meet their commitments to reduce greenhouse gas (GHG) emissions, most governments are taking stricter measures to reduce carbon emissions, with some introducing regulations, such as a carbon tax, that encourage companies to transform their supply chain to reduce their impact.

As renewable energy sources mature, global fossil fuel prices are rising. Renewable energy sources have a lower climate impact and are becoming cheaper, encouraging companies to choose green energy over traditional fossil fuels. Heavy industry players use energy-intensive manufacturing processes that generate high emissions. Carbon capture and reuse technology is a cost-effective solution to limit emissions by converting carbon dioxide (CO2) into more environment-friendly and cost-effective materials.

Among customers, environmental and climate concerns are more important than ever, and sustainability now competes with conventional factors, such as price and brand. Companies must transparently communicate their climate footprint and carbon reduction achievements to satisfy customers.