The Shifts Needed to Decarbonize Industry Essar’s Approach

1. THE SHIFTS NEEDED TO DECARBONIZE INDUSTRY: ESSAR’S APPROACH

2. In the global fight against climate change, countries worldwide have shown their commitment to reducing energy consumption and have set ambitious goals to minimise carbon emissions. The Paris Agreement (COP21), the Renewable Energy Directive (RED I, RED II) and the European Green Deal all demonstrate global efforts to combat climate change. The Paris Agreement is a legally binding international treaty which aims to limit global warming to 1.5–2°C above pre-industrial levels. It is thus crucial for countries to cut greenhouse gas emissions rapidly to achieve carbon neutrality by 2030 and net-zero emissions by 2050.

3. Significance of Decarbonisation for Companies Today, decarbonisation is not just a buzzword; rather, it has emerged as a strategy used by everyone. From governments to corporations, all have stepped their decarbonisation goals as a pivot step towards creating a sustainable future. To achieve 2050 targets, decarbonisation necessitates the complete reduction of carbon emissions. Businesses must, therefore, take immediate steps to make emissions targets an important aspect of business planning. A corporate sustainability strategy ensures that a business operates in a way that uses environmentally sustainable methods while supporting financial growth. Decarbonisation, thus, is a huge business opportunity and a driver of innovation. The industries can minimize their carbon footprint by switching to renewable energy, electrifying systems and improving efficiency.

4. The Shifts Needed to Decarbonize Industry: Essar’s Approach 1. Transition existing assets to deliver reduced emissions levels Industries depend upon products like steel and cement for construction, infrastructure, transportation, and countless other applications. However, cement and steel are estimated to be responsible for 15% of the global carbon dioxide (CO2) emissions making the pace at which their required production is being met, an influential component of industrial emissions. Essar Group has already taken significant steps to transition the operations of its existing assets to clean by creating green hydrogen, mobility and steel ecosystems. Its decarbonisation plans include:

5. 2. Improving Industrial Energy Efficiency Updating existing technology with more efficient technology helps minimize carbon emissions and expenditure towards industrial energy. Today’s competitive landscape is heavily reliant on innovation. Businesses like the Essar Group have already taken significant steps and are looking for ways to innovate because traditional methods cannot solve many problems. Industries, thus, must invest in dynamic innovation processes to boost overall energy efficiency. The key driving factor for Essar’s success and growth is its continuous investment in technology and innovation. The company is investing significantly in new growth areas like low-carbon hydrogen, carbon capture, renewables, green mobility, decarbonization, artificial intelligence, etc.

6. 3. Shift from Fossil Fuels to Renewable Energy It is considered that almost a third of the total amount of carbon emissions in industrial processes is attributed to the burning of fossil fuels. Industries, particularly those in the energy, steel, and transport sectors, are heavily dependent on coal, oil and natural gases. The first step to decarbonize the industry is to displace these traditional energy sources with clean energy production sources such as solar, wind, hydro and geothermal energy. Essar Group is making considerable investments in the renewable energy sector, aligning with its plans to improve its sustainability efforts. By replacing carbon-heavy energy sources with renewable or low-carbon sources, the group is paving the way for a cleaner and more sustainable future. All the efforts taken by the company post clearing Essar debt showcase it remained steadfast in achieving its objective of rebalancing its portfolio for the better. Such efforts, not only specifically target the group’s emissions but also contribute to the broader energy transformation to provide cleaner solutions to the industry.

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