Summary
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- Interview with Michael Raynor, former managing director of sustainability at Deloitte and author of multiple books
- Innovative approach to addressing Scope 3 emissions discussed
- Case study of a bus transit study in Canada recommending hydrogen buses
- Discussion on the S3 Markets approach to combat corporate net zero emissions goal
Article
Michael Raynor, a former managing director of sustainability and thought leadership for Deloitte, shared insights on a unique approach to addressing Scope 3 emissions in a recent interview. He discussed the importance of focusing on industrial emissions from high-emitting commodities and the need for companies to invest in purchasing the environmental attributes of upstream commodities produced in a decarbonized way. This approach, known as S3 Markets, aims to support lighthouse projects pursuing radically decarbonized approaches that are economically viable.
Raynor highlighted the challenges of achieving corporate-level net zero commitments, primarily due to the scope 3 problem where most emissions come from upstream sources. He emphasized the need for companies to stop trying to find the carbon in their supply chain and instead support projects that focus on decarbonizing the production of key commodities. By investing in insets, companies can make a meaningful impact on global decarbonization while aligning with their corporate net zero goals. Raynor stressed the importance of a different theory of change to drive meaningful climate action.
The discussion also touched upon the distinction between insets and offsets in the context of decarbonization efforts. While offsets involve investing in external projects to absorb or reduce carbon, insets focus on decarbonizing the production of inputs required for a company’s operations. Raynor pointed out that insets offer a way for companies to reduce their carbon footprint by supporting decarbonized production of key commodities, even if it is not feasible to track the carbon back to the exact source within their supply chain.
The conversation shifted towards a case study involving the deployment of hydrogen buses in Mississauga and Brampton, Canada. Raynor and Michael Barnard analyzed the recommendations made by the Canadian Urban Transit Research and Innovation Council (CUTRIC) for a blended approach of battery electric, hydrogen, and diesel buses. They scrutinized the assumptions and cost estimates provided in the report, highlighting discrepancies in the pricing of hydrogen production and distribution. The analysis raised questions about the economic viability and carbon abatement potential of different bus technologies.
Furthermore, Raynor delved into the findings from his research, revealing the cost-effectiveness of battery electric buses in terms of carbon abatement compared to hydrogen buses. By calculating the cost per ton of carbon avoided for different scenarios, he demonstrated that battery electric buses offered a more favorable abatement cost. Despite the assertions made in the report, Raynor emphasized the importance of accurately pricing carbon abatement and evaluating the true climate impact of different bus technologies. The discussion underscored the need for a thorough analysis of costs and emissions to make informed decisions on sustainable transportation solutions.
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