Reflets Magazine #143 | Are We Moving Towards Green Industry?
Reflets Magazine #143 is devoting a 15-page feature to reindustrialisation and its conditions. Will this be synonymous with pollution? Or will it align with the challenges of transition? Arnaud Marec (E08), an expert in industry and ecology, and Éléonore Cartillier (E14), Sustainability Manager at Saint-Gobain, give us their insight. Here is a free translation of an extract from the article… Subscribe here to read the whole issue!
Reflets Magazine: What are the main environmental impacts of industrial activities?
Arnaud Marec: Firstly, industry uses huge amounts of fossil fuels. According to estimations, it is responsible for around 40% of world greenhouse gas emissions. Its impact is not limited to carbon, however. It contributes to the artificialisation of soil, which is the primary cause of loss of biodiversity. Industry requires raw materials in ever-growing amounts, to the extent that numerous sectors are threatened by a peak in extractions. It leads to the risk of air, water and ground pollution, particularly in countries favoured for relocation, where the regulations are generally less strict.
RM: What measures does France take to reduce these impacts?
Éléonore Cartillier: Since the passing of the Energy Transition for Green Growth Act (LTECV), France has implemented a national low-carbon strategy (SNBC) which sets a greenhouse gas reduction target for industry at 35% by 2030 and 81% by 2050, compared to the 2015 level. This plan provides guidelines to achieve those targets, such as the improvement of energy efficiency, the use of decarbonised fuels or the development of the circular economy to manage the demand for materials, and so on. Another tool, which has been compulsory since 2012 for all businesses of more than 500 employees, is the carrying out of scope 1 and 2 carbon surveys, i.e. direct greenhouse gas emissions and indirect emissions linked to energy. It must be pointed out that a growing number of companies now readily publish their scope 3 results, which include all other indirect emissions.
A. Marec: What complicates matters is that French regulations overlap with European regulations. For example, 84% of France’s industrial emissions are subject to the European Union Emissions Trading Scheme (EU ETS). Furthermore, the EU's taxonomy project will enable investments to be guided towards more virtuous industrial sectors for low-carbon transition.
RM: Are there private or sectorial initiatives which add to these measures?
É. Cartillier: There is a genuine awareness among industrial companies, as their high level of participation in the last COP26 demonstrated. Many of them are engaged in reducing their emissions by 2050, by replacing fossil fuels with biomass and renewable energy, produced locally or on site, where possible. At the same time, they are accelerating their energy efficiency, with plans to achieve substantial energy savings and improve manufacturing processes. In addition, they are developing high levels of expertise in the analysis and optimisation of their process and product life cycles. Lastly, some businesses have created an in-house carbon price, which means they put an internal value on their emissions. This type of mechanism anticipates the foreseeable extension of carbon taxation systems and CO2 quota markets, and helps to direct investments to the most sustainable projects. Saint-Gobain has thus established two in-house carbon prices, which were recently raised to €75 per tonne for industrial investments and €150 per tonne for research & development investments.
A. Marec: On a broader level, 9 industry sectors have worked hand in hand with ADEME to define their shift to low carbon via transition plans (PTS). There’s also the worldwide SBT initiative, which encourages companies to commit to limiting warming to 1.5°C in 2050; or ADEME’s ACT scheme, which assesses if the policies linked to these engagements are truly adequate from a quantitative and qualitative perspective.
RM: What have been the results of these measures, to date?
A. Marec: A significant gap clearly remains between words and actions. Regarding carbon, for example, sure, there are massive investments in renewable energy and hydrogen technology, but at the same time the use of fossil fuels continues to rise and remains strongly linked to GDP growth. Industry also seems to favour solutions such as carbon sequestration and capture to reach neutrality. While we must envisage these technologies, they lack sufficient maturity; there is too much uncertainty to solely rely on these solutions.
RM: What additional measures would need to be taken?
É. Cartillier: […]
Interview by Louis Armengaud Wurmser (E10), ESSEC Alumni Content Manager
Translation of an excerpt of an article published in Reflets Magazine #143. Click here to read a preview of the issue (in French). Subscribe here to get the next issues (in French).
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