In today’s world, where climate change is becoming more tangible, attention to the carbon footprint and sustainable development is increasing. From smart energy solutions to sustainable manufacturing, these innovations are becoming key elements in the business strategy towards environmental responsibility.
Current trends and climate impact
Greenhouse gas emissions accompany human activities everywhere: logistics, the manufacture of various goods, the provision of services, the production of heat and electricity. Let’s look at the numbers: during the flight on the route Moscow – Vladivostok (when transporting 400 people), 143 tons of SO2 will be released into the atmosphere.
Another example: an average private car travels up to 20 thousand kilometers per year, while emitting 3.55 tons of SO2. Moscow has a population of 13.1 million people, and almost half of them use cars, which leads to the release of about 23 million tons of SO2 into the atmosphere.
Finally, refineries, where the main sources of emissions are furnaces, catalytic cracking units, hydrogen production units and facilities related to electricity generation. A modern refinery emits tens of millions of tons of SO2 per year during its operation.
2024 was the hottest on record. In many countries, records of maximum environment temperatures were recorded. As a result of the increase in the concentration of so-called greenhouse gases in the air, the planet’s atmosphere does not have time to cool down.
Many say that everything in nature is cyclical and the concentration of SO2 in the atmosphere changes by sinusoid, when periods of growth are replaced by periods of decrease in the concentration of greenhouse gases. Nevertheless, over the past 30 years, the average value of SO2 concentration in the atmosphere has increased by more than 70 ppm.
Many developed countries have implemented emission registration and accounting systems, as well as carbon regulation or carbon taxation systems to curb greenhouse gas emissions. Russia is no exception. To date, 49 climate projects have already been registered in the country in the register of carbon units.
Environmental market and consumer trends
According to the latest research by VTsIOM, more than half of Russian buyers (55%) pay attention to the presence of environmental labeling of goods (if any), and almost two-thirds (64%) are willing to pay a premium for products with a reduced environmental impact. This trend is especially noticeable in large cities, where a new culture of conscious consumption is being formed. The market for environmentally friendly goods in Russia still accounts for a small share of the total turnover, but it has an upward trend. Organic food, eco-friendly cosmetics and household chemicals, energy efficient technology – these categories of goods are becoming growth drivers for a new market segment.
We have repeatedly gone through the “greening” of purchasing habits. A prime example is fuel for cars. The ecological class of fuel is characterized by the Euro standard. Today, at gas stations in Russia, most of the fuel sold meets the Euro-4, Euro-5 and Euro-6 standards. Each new standard made car exhausts cleaner and the air in cities fresher. However, the main achievement is a decrease in sulfur content. So, if up to 500 mg/kg of sulfur was allowed in Euro-2 fuel, then in Euro-5 only 10 mg/kg is allowed. That is, the fuel has become 50 times cleaner in this most important indicator.
However, the real revolution is taking place at the level of industrial production. China, the world’s largest emitter of greenhouse gases, has launched an unprecedented experiment – a national emissions trading system covering 4.5 billion tons of carbon dioxide. This is more than all emissions from all EU countries. More than 2,000 Chinese companies already participate in carbon trading, and their number is growing every month. The cost of one carbon unit in China is about 500-600 rubles, for comparison: one carbon unit on the ETS exchange in Europe is estimated at 6,000-7,000 rubles.
Russian companies are also included in this game. After the adoption of the federal law “On limiting greenhouse gas emissions” in 2021, the largest industrial enterprises began to introduce emission accounting systems and develop decarbonization strategies. Metallurgists are investing in green steel production technologies, chemical companies are switching to low-carbon processes, and energy companies are increasing their share of renewable energy sources. To date, the cost of one carbon unit in Russia is about 1000 rubles.
From carbon footprint to carbon market
Imagine the carbon footprint as a kind of new world currency. Companies now don’t just make goods – they can manage their carbon budgets. Cement, steel, aluminum, mineral fertilizers – products with a high carbon footprint are gradually becoming a “tax burden,” which must be disposed of through constant modernization of production or compensation for emissions.
If the carbon markets of the countries of the Asia-Pacific region are integrated, this will create the world’s largest emissions trading platform. Russia, located between the European and Asian markets, has a unique opportunity to become an important player in the new carbon economy.
A real technological revolution lies behind the carbon reporting hard numbers. Smelters are experimenting with hydrogen instead of coal, chemical plants are adopting carbon capture systems and power engineers are building giant solar and wind farms.
However, the path to a green future is not so simple. The high cost of new technologies, dependence on imported equipment, the difficulty of verifying the carbon footprint are just some of the obstacles to be overcome. According to experts, in order to achieve carbon neutrality by 2060, the Russian industry will need investments in the amount of several trillion rubles.
New business models
Corporate carbon footprint indicates greenhouse gas emissions from the company’s activities over an annual period. These emissions are usually divided into areas of coverage:
- emissions the company has direct control of (for example, company production facilities, company vehicles);
- indirect emissions from purchased electric power;
- indirect supply chain and sales emissions the company has no direct control of.
To achieve the greatest reduction in greenhouse gas emissions, it is necessary to focus on the implementation of climate projects and activities that lead to a reduction in emissions related to areas 1 and 2. In order to understand where your organization is starting in this area, it is necessary to take an inventory of greenhouse gas emissions and determine which sources of emissions contribute the most to the carbon footprint of your products and services.
The environmental and climate agenda not just transforms existing business processes in companies, but also forms fundamentally new models of value creation and monetization.
One of the dynamically developing areas is the economy of joint consumption. For example, car sharing and micromobility, which are effective alternatives to traditional models of vehicle ownership. The growth rate of this sector is impressive: analysts predict that the global market for electric transport sharing services will reach $500 billion by 2030.
The circular economy is another distinct cluster of business solutions. Lithium-ion battery recycling in particular is emerging as an important high-potential destination. Companies remanufacturing and reusing key components demonstrate significant profitability while reducing environmental burden.
The energy sector is also undergoing a profound transformation. The development of renewable energy sources contributes to the emergence of virtual power plants and smart grids, which create new opportunities for managing distributed generation and energy consumption. Even 5-7 years ago, no one could have imagined that companies would appear in Russia offering the supply of completely “green” electricity produced from renewable sources at tariffs no higher than traditional kilowatts.
The financial sector is adapting to new challenges through the introduction of green tools. ESG investing and climate-linked credit products are gaining popularity among institutional and private investors, forming a steady trend towards using capital to support climate solutions.
In addition, digitalization of the carbon footprint opens up new niches for technological solutions. For example, blockchain platforms for product origin tracking and real-time emission monitoring systems are emerging as key elements of the climate technology market. These areas have already attracted significant venture capital investments.
Thus, decarbonization becomes not just an environmental priority, but also a powerful catalyst for business innovation, forming multibillion-dollar market opportunities. Companies that can integrate climate technology into their business models will gain significant competitive advantages in the global transition to a low-carbon economy.
By Elena Gazizyanova, General Director and Founder of Gas Service Consulting