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Understanding the Nature of Residual Emissions
Residual emissions typically arise from sectors or processes where emission reduction is challenging due to current technological limitations or where the cost of reduction is prohibitively high. For example, certain industrial processes may release GHGs as part of chemical reactions that are integral to producing goods. Similarly, emissions from logistics and transportation may also be considered residual because even though some lower-emission solutions do exist, it is often not feasible to switch over to them at scale.
Strategies for Managing Residual Emissions
To address residual emissions, sustainability managers often turn to carbon credits and insetting projects. Carbon credits involve investing in external projects that reduce or remove emissions to neutralise residual emissions. Insetting, on the other hand, involves similar investments but within a company's own value chain or supply chain, aligning closely with the business's core activities and sustainability goals.
What is the difference between residual emissions, unavoidable emissions, and hard-to-abate emissions?
- Residual Emissions: All emissions that remain after all feasible measures to reduce a company’s emissions have taken place.
- Unavoidable Emissions: These are a subset of residual emissions that cannot be eliminated due to current technological and economic constraints. They are deemed "unavoidable" as long as no feasible alternative exists, despite efforts to minimise emissions elsewhere.
- Hard-to-abate Emissions: This term refers to emissions from sectors where reducing carbon footprint is particularly challenging, such as heavy industry (steel and cement manufacturing) and long-haul transportation. Hard-to-abate emissions are a focus for innovation and investment in new technologies.
Importance in the Net Zero Journey
Understanding and addressing residual emissions is crucial for sustainability managers aiming to meet net zero targets. While the focus should first be on reducing emissions as much as possible, residual emissions are inevitable, highlighting the need for measures such as carbon removal in order to neutralise them.