Decarbonization

Learn what decarbonization is, what role the energy transition plays in reducing CO2 emissions, and how to implement a low-carbon economy.

Decarbonization: Meaning and Benefits of a Low-Carbon Economy

For centuries, fossil fuels have been the primary source of energy for the world’s population. The problem is that burning these substances releases large amounts of carbon dioxide (CO2) into the atmosphere, which is highly polluting. This process contributes to global warming and even to the spread of respiratory diseases among the population.

The gases emitted by industries and by gasoline- or diesel-powered vehicles are very harmful to the environment and to people’s health. Over the years, as pollution from these energy sources has increased, there has been a growing need for more effective measures to improve this situation.

What is decarbonization?

Decarbonization is the process of replacing fossil fuels—which emit carbon dioxide—with renewable energy sources. It is the effort to reduce and, in the long term, eliminate CO2 emissions by companies and individuals.

Decarbonization of the electricity sector

Renewable energy, derived from natural resources, is a key ally in the decarbonization process. Using solar energy, for example, is one way to invest in reducing carbon emissions and work toward an increasingly sustainable future for the entire planet. This effort, combined with energy efficiency and investments in technology and innovation, forms the foundation for the low-carbon energy transition.

What are the benefits of the Energy Transition?

The transition to more sustainable energy sources is crucial to limiting global warming to 1.5 °C, which means expanding the use of renewable energy and reducing the use of fossil fuels. In addition, it brings economic and social benefits, such as job creation, reduced pollution, and improved quality of life.

According to a recent Accenture study, most companies around the world are struggling to meet the “Net Zero Emissions” target. Only 18% of the 2,000 largest global organizations are on track to achieve this goal by 2050.

How can we put decarbonization into practice?

As major emitters, large companies play a key role in the decarbonization process, but individuals can also do their part, since this process aims to improve quality of life and well-being for everyone. Some important decarbonization actions include:
Less waste:
When a product—the energy used to manufacture which came from fossil fuels—is discarded, the CO2 that was emitted is released into the atmosphere.
Greater efficiency:
an investment that avoids very high costs for raw materials (CO2) and energy.
Recycling:
Recycling a material emits far less carbon dioxide than producing a new one.

The Challenges of Decarbonization

Certain factors are essential for an efficient low-carbon economy, but there are still many challenges to achieving Net Zero:

 

  • High initial investment, though it is cheaper in the long run;
  • For decarbonization to expand, new technologies are needed, particularly in the area of engines;
  • A lack of knowledge about decarbonization leads to low investment in the process;
  • We need to raise awareness so that people invest in and adopt a culture of sustainability.

Neoenergia Shares

As one of Neoenergia’s key strategies, reducing greenhouse gas emissions has been a central focus throughout the company’s history, with the goal of achieving net-zero emissions across all levels by 2050. The company is implementing a series of measures that reinforce and contribute to this mission. In line with the Sustainable Development Goals (SDGs) established by the United Nations (UN), key priorities include SDG 7, which aims to ensure reliable, sustainable, modern, and affordable access to energy for all. SDG 13 is also a key priority for the company, as it focuses on taking urgent action to combat climate change and its consequences.

Check out some of the decarbonization initiatives carried out by Neoenergia:
  1. Wind Energy;
  2. Solar Energy;
  3. Electric Mobility;
  4. Sustainability Index Certifications.
A key player in Brazil’s energy transition, Neoenergia also partners with the Rock in Rio, The Town, and Lollapalooza festivals to implement solutions for decarbonizing music events. The goal of reducing CO₂ emissions in the music industry is to engage young audiences and, above all, mitigate the environmental impact in one of the largest segments of the entertainment industry.