Avoiding risks through implementation
As the EV market shows, cost is not the only barrier to adoption. More consumers are interested in electric vehicles, but U.S. auto dealers are struggling to move inventory, in part due to concerns about a lack of charging infrastructure to support EVs. It is reported that.7 The challenges of an immature ecosystem are only exacerbated when it comes to industrial supply chains, given the large investments and long lifecycles involved. These value chain and technological uncertainties lengthen the time to maturity and, as a result, keep the costs of emerging climate change technologies high.
Intervention is required if this impasse is to be broken soon. Climate scientists say global greenhouse gas emissions need to reach net zero by 2050 to limit global warming to 1.5°C.8 This means we cannot afford to wait decades for the learning curve of climate change technologies to naturally reach critical mass. Deloitte's GreenSpace Tech initiative aims to accelerate implementation by combining data and information with relationships across the vast climate technology ecosystem, using advanced technology and artificial intelligence to help clarify strategy. The purpose is
While organizations can individually support the development of climate technologies, coalitions can speed up the process by laying the groundwork for mass-market adoption. They will achieve this through pre-purchasing from climate technology suppliers, funding the construction of supporting infrastructure, and other activities. A number of such coalitions have been formed in the past few years. for example:
- The First Movers Coalition, of which Deloitte is a member, is investing in innovative green technologies to enable massive scale-up by 2030.
- The Sustainable Aviation Buyers Alliance (SABA) brings together companies looking to decarbonize air travel through investments in reliable sustainable aviation fuel (SAF).
While the number of buy-side collaborations is increasing, supply-side collaborations are much more complex. First, there is far less standardization on the supply side. Although production routes remain highly diverse, there are several jet fuel standards that SAF producers must meet. This is most evident in the Cambrian's explosion of atmospheric carbon capture technologies, from direct aviation techniques to carbon capture from biological sources and the oceans.
There are still ways supply-side organizations can benefit from collaboration. Many organizations are involved in various supply-side activities. Examples include industry organizations that provide visibility to carbon capture suppliers, such as the trucking industry.
By participating in coalitions on both the demand and supply sides, COOs can help their organizations shape standards development for business advantage, secure critical supplies faster than competitors, and increase their climate credentials. can do.
