CO₂ Emission Reduction – The Future of Industry in New Realities

Reducing CO₂ emissions is fundamental to combating climate change, which increasingly impacts the environment, the economy, and human health. Industry, as one of the largest energy consumers (accounting for 32.8% of energy use in Poland in 2022), consequently generates a significant share of greenhouse gas emissions.

At the same time, according to the International Energy Agency (IEA), the potential to improve energy efficiency in industrial processes ranges from 18% to 26%. This presents tremendous opportunities for implementing innovative technologies that can not only reduce emissions but also enhance companies’ competitiveness and lower operational costs.

The European Union has set ambitious climate goals aimed at achieving climate neutrality by 2050. A key milestone in this transition is reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.

One of the EU’s main pillars of action is the development of renewable energy sources. The EU successfully exceeded its 2020 goal of achieving a 20% share of renewable energy in gross final energy consumption, reaching 22.1%. Despite this positive outcome, significant differences remain between member states in the use of renewable energy sources.

Another crucial aspect is the reduction of primary and final energy consumption. Peak energy consumption in the EU was recorded around 2005, followed by a systematic decline. In the second quarter of 2023, electricity consumption was 6% lower compared to the same period in 2022 (European Commission 2023). In 2022, primary energy consumption was 4% below the target set for 2020 but still 26% higher than projections for 2030. Similarly, final energy consumption was 2% below the 2020 target but exceeded the 2030 assumptions by 23%.

Here you can download a publication Energy Management System (EMS) as a Tool in Limiting the Coal Trace in Industry – M.Piekarski, K.Grübel – pdf file.

The calculation of CO₂ emissions from energy consumption is based on applying appropriate emission factors to the consumed energy. For electricity, it takes the simplest form:

Where:

• E_CO2​​ – CO₂ emissions [kg CO₂]
• E_el​ – electricity consumption [kWh]
• EF_el​– CO₂ emission factor for electricity [kg CO₂/kWh]

CO₂ emissions can be calculated for various energy sources, such as electricity, natural gas, coal, or liquid fuels. Here, more on comparig energy consuption. In the case of multiple sources, a summation formula is used:

Where:

• E_CO2​​ – total CO₂ emissions [kg CO₂],
• n – number of energy sources,
• E_i​ – energy consumption of the $i$-th source (e.g., kWh, m³, liters),
• EF_i​ – CO₂ emission factor for the i-th source [kg CO₂/unit of energy].

It should be noted that emission factors can vary for each energy source depending on the country and methodology. Moreover, current emission factors are published by national and international agencies, such as KOBiZE or IPCC. However, the most accurate results are obtained by relying on values provided by energy suppliers (electricity, gas, district heating, hydrogen, etc.) specific to the given facility, i.e., tailored to each location individually.

For precise results, it is important to account for variability in units (kWh, m³, liters).

Poland is in a challenging position compared to other European Union countries, primarily due to the dominant role of coal in its national energy mix. Currently, the production of a single component, such as a crossmember (a structural car part), generates varying emissions depending on the country:

• Austria: 169 g CO2-eq,
• Germany: 256 g CO2-eq,
• Poland: 591 g CO2-eq.

These figures highlight the critical need for Poland to transition to more sustainable energy sources and modernize its infrastructure to reduce the disparity with other EU nations.

The Emissions Trading System (ETS) is a key climate policy tool of the European Union aimed at reducing greenhouse gas emissions in the most energy-intensive sectors of industry and energy production. ETS operates on a “cap-and-trade” mechanism, setting a maximum limit (cap) on CO₂ emissions across the EU, while companies are required to purchase emission allowances on the market.

For businesses, particularly in sectors like steel, cement, and chemicals, purchasing emission allowances represents a significant cost, increasingly affecting their competitiveness in both European and global markets. Designed with this in mind, the system aims to incentivize companies to invest in low-emission technologies and energy efficiency. Here, more on SPBT i ROI.

The European Union has set expectations for industry to meet climate goals and promote sustainable development:

1. Reduction of Greenhouse Gas Emissions:

The EU aims to reduce emissions by at least 55% by 2030 compared to 1990 levels. Industry is required to implement effective strategies to reduce CO₂ emissions in their production processes.

2. Energy Transition:

Businesses are expected to improve energy efficiency and transition to renewable energy sources. Reducing dependency on fossil fuels is essential to achieving climate neutrality by 2050.

3. Investments in Innovation:

Industry should actively invest in modern technologies such as carbon capture and storage (CCS), green hydrogen, and process digitization to enhance competitiveness and reduce emissions.

4. Compliance with Legal Regulations:

Companies must adhere to stricter rules, including the updated Industrial Emissions Directive (IED) and requirements stemming from the European Green Deal.

5. Reporting and Transparency:

The EU expects companies to regularly report on emissions and eco-friendly actions, increasing transparency and enabling the monitoring of progress towards climate goals.

6. Sustainable Supply Chains:

Businesses should ensure that their suppliers and partners also adhere to sustainability standards, minimizing emissions at every stage of production.

7. Global Competitiveness:

The EU envisions its industries as leaders in green technologies, necessitating continuous improvement and adaptation to global environmental trends.

8. Preventing Carbon Leakage:

Through mechanisms such as CBAM, the EU expects industries to cooperate in preventing the relocation of production to countries with lower environmental standards.

The European Union is tightening its climate policy by introducing new legal frameworks designed to enhance the effectiveness of the ETS and accelerate emission reductions in industry. Key changes and challenges for businesses include:

A. Stricter Emission Caps – Starting in 2024:

New emission caps for companies in the ETS sector will be significantly reduced to accelerate emissions reductions. The availability of allowances will decrease at a faster rate, pushing companies to take action toward low-emission transformation.

B. Gradual Phase-Out of Free Allowances – 2026–2034:

Under the ETS reforms, companies will gradually lose free emission allowances. This process will begin in 2026, with a complete phase-out expected by 2034. This will increase pressure on businesses to adopt low-emission technologies and improve energy efficiency. Here, more on SPBT i ROI.

C. Implementation of CBAM – Pilot in 2023, Full Rollout in 2026:

The Carbon Border Adjustment Mechanism (CBAM) introduces charges for emissions embedded in goods imported into the EU. From 2026, industries will need to account for CBAM as a factor influencing operational costs, particularly in the context of international competition.

D. Industrial Emissions Directive (IED) – New Requirements from 2028:

Stricter regulations will require companies to use the Best Available Technologies (BAT) to reduce emissions. These new environmental standards may necessitate modernization of production infrastructure, leading to additional investment costs.

E. New EU Climate Targets for 2030:

The commitment to reduce emissions by at least 55% by 2030 requires companies to develop long-term strategies and implement solutions that not only meet current requirements but also prepare them for future regulations.

CBAM is a mechanism that imposes additional charges on products imported into the EU from countries with less stringent climate regulations. Its purpose is to prevent “carbon leakage” and protect the competitiveness of European businesses.

EnobEMS provides modern tools for energy monitoring and consumption analysis. This allows companies to identify areas needing improvement, implement effective changes, and reduce operational costs and CO₂ emissions. ENOB also supports the optimization of investments in sustainable technologies.

• Reduction in operational costs through efficient energy use.
• Compliance with EU regulations, minimizing financial risks.
• Enhanced brand image as a leader in sustainable development.
• Increased competitiveness in the global market, which increasingly values carbon neutrality.

The industrial sector is at the center of the global energy transformation in response to climate change. Reducing CO₂ emissions has become a priority, and actions in this direction not only address environmental crises but also pave the way for innovation and sustainable development.

The European Union has set ambitious climate goals, aiming for climate neutrality by 2050. Mechanisms such as the Emissions Trading System (ETS) and new regulations supporting renewable energy development encourage industry to accelerate technological advancements. While this transformation poses challenges, it also offers opportunities to enhance efficiency and deliver long-term benefits for businesses.

Evolving market conditions and growing pressure to reduce emissions necessitate the adaptation of business strategies. Countries like Poland, with a high reliance on coal in their energy mix, face unique challenges. However, alongside these challenges come opportunities for modernization, investment in advanced technologies, and increased competitiveness.