BAKU, Azerbaijan, Nov. 14, 2024 /PRNewswire/ -- Governments must urgently act to stimulate demand for green materials, chemicals and fuels to accelerate the decarbonisation of the world's highest-emitting industries[1], according to 40+ business/ finance leaders and coalitions, representing more than 1,000 companies and financial institutions, in a new open letter. Doing so could unlock up to $1tn[2] of investment and bring more than 500 green industrial plants to construction by 2030. This would enable the emissions reduction needed from aluminium, cement, chemicals, steel, aviation and shipping - to align with a 1.5°C pathway in the next decade.
New data from the ITA and the Mission Possible Partnership (MPP) reveals a growing pipeline of industrial projects. However, < 20% are operational or have the finance and approvals necessary to begin construction. Since April 2024, only eight facilities globally have reached Final Investment Decision (FID), leaving 561 announced but not yet definitively confirmed. 300 of these have been awaiting investment decisions for at least two years. If this rate continues linearly, it would take around 35 years for enough facilities to begin construction[3].
To move to a 1.5°C-aligned trajectory the full pipeline of projects must be financed and begin construction within the next two years[4].
A lack of policies has led to insufficient demand for green products leaving corporations and financiers without the certainty needed for long-term investments. Consequently, projects are stalling. Buyers are unable to commit to long-term offtake agreements at scale due to the continued availability of cheaper, higher-carbon equivalents and lack of incentives to opt for the cleaner option.
Led by the ITA and endorsed by The Glasgow Finance Alliance for Net Zero (GFANZ), the coalition from more than 50 countries, calls for governments to deploy policy measures in the open letter:
Alongside the letter, the ITA has published a Green Demand Policy Playbook setting out evidence-based policy measures available to governments to increase demand for low- and near-zero-carbon materials, chemicals and fuels so as to unlock supply.
[1] Aluminium, cement, chemicals, steel, aviation and shipping
[2] The total investment figures in USD (global and regional) have been calculated using the number of identified projects in the MPP's Global Project Tracker - which uses aggregated data to chart investment progress into net-zero-aligned projects - and publicly available investment data and insight on the amount of investment required for a green industrial plant to reach FID . Sources include: MPP, RMI, Systemiq and BNEF.
[3] 40 years for 552 projects at the pace of 7 projects over 6 months (552/7)/2
[4] The Tracker compares actual investment progress against the MPP's 2030 pipeline targets, representing around 70% of the emissions abatement needed to keep the sectors within their sectoral carbon budgets for 2030 and on track for net zero 2050. The remaining 30% can be achieved through energy and materials efficiency
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Business and finance call on government to unlock demand for low-carbon products and accelerate industrial projects worth $1,000,000,000
SAP prioritizes sustainability to enhance global well-being and drive success, leading with carbon-neutral operations and empowering customers to develop smart, sustainable enterprises.
SAN ANTONIO, Nov. 14, 2024 /PRNewswire/ -- Recently Frost & Sullivan assessed the digital sustainability in the energy, oil and gas industry, and based on its findings, recognizes SAP with the 2024 Global Company of the Year Award. The company is a global technology leader that provides enterprise application software and services. Its extensive suite of applications and solutions span areas such as supply chain management, finance, and data analytics, enabling businesses to adapt to changing market conditions. Moreover, as the push for emissions reduction spreads throughout every industry, SAP is well-positioned to guide its customers into sustainable practices. Aligned with the United Nations' Sustainable Development Goals, SAP aims for net-zero emissions across its value chain by 2030 and continuously improves energy efficiency. The company is committed to eliminating electronic waste by 2030, improving waste management, reducing water consumption, and raising sustainability awareness.
SAP's comprehensive product suite reduces environmental impact and enhances sustainability and efficiency across various industries. The company's solutions facilitate new market creation, such as hydrogen fuel cell vehicles, by addressing limitations in hydrogen availability and supporting sustainable transportation growth. SAP also aids in converting traditional oil refineries to biodiesel production facilities, aligning operations with global sustainability goals, and capitalizing on renewable energy opportunities. Furthermore, its end-to-end value chain management enhances operational efficiency and regulatory compliance, empowering customers to innovate and meet sustainability targets effectively. SAP's "We Measure" program allows organizations to measure their carbon footprint at various levels, enabling them to set and track key performance indicators (KPI) related to their CO2 impact. Additionally, SAP supports sustainability report creation that comply with standards such as the Center for Sustainable Rural Livelihoods and the Global Reporting Initiative, automating the data gathering and reporting process for accuracy and efficiency.
Samantha Fisher, best practices research analyst, Frost & Sullivan, observed "Emphasizing the importance of harmonized data for effective sustainability reporting, SAP solutions such as the Enterprise Sustainability Hub integrate data from various sources, including SAP and non-SAP systems, to streamline the reporting process. This approach supports customers with different sustainability maturity levels, from manual spreadsheet-based processes to fully automated systems."
SAP supports organizations across various industries, such as utilities, water and wastewater, and power, in effectively managing their environmental impact and driving sustainability initiatives. By combining its technology with partner expertise, the company helps organizations achieve their sustainability goals while maintaining operational and financial performance, transforming raw data into actionable insights that drive efficiency and sustainability. SAP's partnerships underscore its commitment to innovation and sustainability, leveraging collaborative efforts to meet diverse market demands and drive meaningful impact. The company covers the entire lifecycle of environmental data management from recording and accounting to reporting and action, enabling comprehensive oversight and actionability. By enabling advanced digital technologies and robust analytics, SAP accelerates the adoption of sustainable practices, positioning itself as a crucial partner in the digital transformation of the energy and O&G industries.
"SAP integrates sustainability initiatives into its operations and solutions, enhancing transparency and customer confidence. It offers comprehensive tools across various sectors to accurately measure environmental impact and support sustainable growth. The company remains a trusted partner, earning a reputation for offering the overall best in the market," added Paulina Blaszczyk, industry analyst at Frost & Sullivan.
Each year, Frost & Sullivan presents a Company of the Year award to the organization that demonstrates excellence in terms of growth strategy and implementation in its field. The award recognizes a high degree of innovation with products and technologies, and the resulting leadership in terms of customer value and market penetration.
Frost & Sullivan Best Practices awards recognize companies in various regional and global markets for demonstrating outstanding achievement and superior performance in leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analyses, and extensive secondary research to identify best practices in the industry.
About Frost & Sullivan
For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders, and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion. Contact us: Start the discussion.
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SAP Applauded by Frost & Sullivan for Driving Sustainability in Energy, Oil, and Gas, and its Market-leading Position
