Partnerships are key to achieving global carbon neutrality

"New innovations are only possible through partnerships" was one of the key takeaways of the strategic panel Accelerating decarbonisation through mutually beneficial cross-sector partnerships.

Along with stressing the importance of partnerships, the panel noted that it is essential to be realistic when approaching decarbonisation, and not to overlook or forget the importance of providing affordable energy, and energy security. The panel started by volunteering some examples of successful partnerships in the decarbonisation sphere.

Jennifer Holmgren, CEO of carbon capture company LanzaTech, remembered that it was through the power of partnerships that the world was first introduced to the idea of sustainable aviation fuel. “It was about 15 years ago, when people didn’t believe that you could fly using something other than fossil fuels." she said.

"Boeing helped us bring together a number of different partners, including equipment manufacturers, airlines and the Federal Aviation Authority, and we organised four different flights across the world to prove that it was possible. It was a great example of why new things only happen when people come together.”

Ichiro Takahara, Chairman & CEO of JOGMEC, added that more partnerships between the energy and manufacturing industry would help increase production of clean energy, while the gas partnership between PTTEP, the National energy provider of Thailand, and ADNOC was also mentioned as another impactful partnership. ADNOC was also praised for being a pioneer for its collaborations in Malaysia and Indonesia, and being one of the first to invest in gas in Southeast Asia.

Dr. Markus Steilemann, CEO of Covestro, the German provider of high-tech polymers, explained that his company relies heavily on partnerships to help it lower its carbon footprint. “We can’t achieve carbon neutrality and circularity on our own,” he explained.

“If we really want to be carbon neutral, we have to make sure that our suppliers are carbon neutral too. After all, our scope three emissions roughly represent 80% of our emissions, whereas our scope one and scope two are only 20%. We also partner with chemists to make sure that everything we make can be recycled or reused.”

Another message was that financing for first-of-their-kind decarbonisation projects needed to be redefined. Small new innovation projects are deemed to be risky by partners and investors, but of course people need to realise that actually the bigger risk is climate change.

Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, mentioned that the key to forging strong partnerships is mutual trust. “Building trust requires consistently delivering on your promises, shared dialogues, and transparency,” he began.

“The best relationships are also built on shared goals, and building a sustainable future has to be a collaborative effort. We are long-term players in partnerships – for instance we have believed in the power of gas for a long time. For us, every partnership is a step towards a broader energy transition."

When asked if time was running out for governments to effectively tackle decarbonisation, it was concluded that the most important thing was not to panic, and to stick to a clear and straightforward plan.

Steilemann added: “As the situation gets worse, some governments tend to panic and set higher targets that have to be achieved even earlier. But in my opinion, this is precisely the wrong thing to do.

“For instance, I would rather we achieved net zero by 2055 rather than change the target to 2040 and get nowhere because it seems too ambitious. Instead, we need to remain calm and invest in putting the right technologies and partnerships in place.”

Montri Rawanchaikul, CEO of PTTEP ended by urging organisations to not get too caught up with the different labels put on renewable energy, and remember the true purpose of what the sector is trying to achieve.

“We need to remember that the three key things we want from energy is affordability, security and sustainability. It's important not to get too preoccupied by how to decarbonise, and consequently overlook affordability. Energy security equals a higher quality of life, and so we need to find a way of offering energy security in an affordable form.”