January 2022
Member Spotlight
Throughout 2022, SECC will recognize one member every month, providing an organizational profile and highlighting the member's accomplishments in the smart energy space.
About DNV
DNV is an independent assurance and risk management provider, operating in more than 100 countries. They provide assurance to the entire energy value chain through their advisory, monitoring, verification and certification services. As the world's leading resource of independent energy experts and technical advisors, they help industries and governments to navigate the many complex, interrelated transitions taking place globally and regionally in the energy industry. They are committed to realizing the goals of the Paris Agreement and support their customers to transition faster to a deeply decarbonized energy system.
Pathway to Net Zero
Achieving zero emissions will not be enough to reach a 1.5°C future. Different regions around the world have different starting points on the road to decarbonization, with varying levels of emissions, technologies and capabilities. Developed regions and sectors must go below zero emissions if the world is to reach the 1.5°C goal. DNV’s new report, Pathway to Net Zero Emissions, outlines a plausible, but challenging, pathway to net-zero emissions, but it will take massive and early action for it to succeed. All regions and sectors will need to take more and faster steps toward the energy transition, but the least-developed countries will need dedicated technology and financial assistance to enable a fast transition.
The report identifies specific sectors—road transport, maritime, aviation, space and water heating, manufacturing, power generation, hydrogen, carbon capture and storage, and energy efficiency—that are both the largest emitters of carbon but also offer the greatest opportunities to achieve net zero. It maps out the technologies, policies, and investments needed in each sector to meet the Paris agreement goals.
In North America, there is an opportunity to reduce CO2 emissions from 6Gt in 209 to -0.8 Gt by 2050 via a rapid reduction in the use of coal and oil, supplanted by electricity and hydrogen in the energy system. Both the United States and Canada have net-zero GHG targets for 2020, but they will require strong policy levers to achieve them. For example:
- Raising the average carbon price will be reflected as costs for fossil fuels
- Subsidizing the EVs and banning the sale of fossil-fuel powered vehicles from 2030 for passenger vehicles and from 2040 for commercial vehicles
- Better energy efficiency standards for new commercial and residential buildings, partial banning of fossil fuel equipment in buildings, and an accelerated phase-out of fossil-fuel equipment by halving lifetimes for new equipment
- Investments in electrification of heat supply in the manufacturing sector
- Banning fossil fuel power plants from 2040 on
The window is closing to reach 1.5°C — but the pathway to net zero is both technically and politically feasible — and, therefore, its achievement is a realistic possibility if we can harness the best of our efforts.
Achieving an Equitable Energy Transition
The world is making the necessary transition from dependence on fossil fuels for power generation, transportation, and building heating and cooling in response to the threat of climate change. In fact, DNV’s 2021 Energy Transition Outlook predicts that the share of electricity in global energy demand will double from 19 percent to 39 percent of the energy mix, driven by the electrification in the building, transportation and manufacturing sectors. New technologies are arriving in the market with increasing speed, but currently the price to participate is too high for many.
To ensure that the energy transition is successful it must be just, and DNV is working with its partners to ensure that no one is left behind in this transition. DNV’s industry experts provide strategic direction on how to reach low- and moderate-income households, historically underrepresented communities and environmentally vulnerable communities to ensure that they are not left behind in the energy transition.
