So far, the transition to a low carbon economy has already grown. Businesses around the world must prepare to tackle the heart of today's carbon economy, especially energy, transportation, and heavy industry1.
If global greenhouse gas emissions are kept under control, then economic growth must be kept fundamentally decoupled from emissions growth, with today's technological improvement and energy consumption patterns2.
Thus, the move to a low carbon economy is very uncertain because some companies will be clear winners while others will be clear losers, which in reality is ambiguous. Consequently, managers must carefully start the starting point for this analysis and some strategic responses not only by optimizing the carbon use efficiency of existing assets and products, or by increasing demand for alternative low carbon solutions, but also due to public policy regulations.
Useful notes on reducing carbon emissions can be stated like this:
- Energy users will have to follow strict technical rules and standards, and should consider benefiting in various ways from this change. Many companies will have profitable opportunities to save money by reducing consumption and greenhouse emissions, especially if these organizations can receive credits for carbon reduction. Companies can improve their internal energy efficiency by reducing or optimizing carbon fuels. Energy-efficient lighting systems and reuse of heat in manufacturing processes should generate electricity or heat in the later phases of production. Companies can make efforts to reduce costs and reduce gas emissions throughout their supply chain or subsidiaries:Key performance indicators are useful for negotiating with suppliers. Businesses can design products with carbon efficient raw materials which means less energy and lower operating gas levels.
Serious and profitable projects have recently been carried out to reduce gas emissions. Rhodia, a French chemical company, for example, significantly increased its profits in South Korea and Brazil using clean development mechanisms that reduce around 13 million tons of gases a year. Consequently, carbon markets will grow and be very attractive and demanding in health planning.
1 The McKinsey Quarterly 2008 Number 2.
2 Intergovernmental Panel Climate Change. 2007.
