Long-term Decarbonization strategy: What it is and How to apply it in your company

Decarbonization is a complex and gradual process aimed at reducing carbon dioxide (CO₂) and other greenhouse gas (GHG) emissions into the atmosphere. The key to success lies in the effective implementation of a well-planned and executed decarbonization strategy.

Here, we delve into everything you need to know about the Long-Term Decarbonization Strategy: its characteristics, benefits, and how it can be implemented in your company.

What Is the long-term Decarbonization strategy?

The Long-Term Decarbonization Strategy is part of the Energy and Climate Strategic Framework, serving as a roadmap to achieve climate neutrality. This involves drastically reducing GHG emissions to reach net-zero emissions by 2050.

In Spain, the Long-Term Decarbonization Strategy (ELP 2050) aims to reduce GHG emissions by 90% by 2050 compared to 1990 levels. The remaining 10% is expected to be offset through carbon absorption mechanisms, such as reforestation, which act as carbon sinks by removing CO₂ from the atmosphere.

This strategy not only focuses on emission reductions but also considers the economic growth and job creation opportunities that arise from transitioning to a low-carbon economy.

The Long-Term Decarbonization Strategy paves the way for an energy model based on renewable sources, bringing several benefits:

• Increased competitiveness: A more efficient energy system with less reliance on fossil fuels strengthens business competitiveness.
• Improved public health: Reducing air pollution from burning fossil fuels positively impacts population health.
• Biodiversity conservation: Mitigating climate change helps protect ecosystems and biodiversity.

Opportunities from the long-term Decarbonization strategy

The green transition driven by the Long-Term Decarbonization Strategy creates favorable conditions for new opportunities across all economic sectors. This process decouples economic growth from energy consumption and negative environmental impacts, promoting a sustainable development model.

1. Job creation and investment

• Boost to employment: The strategy includes measures expected to create jobs, with a 1.6% increase in employment rates by 2050. This translates to approximately 300,000 new jobs annually during the transition. Key drivers of job creation include sectors related to digitalization, sustainable industrial production, and renewable energy.
• Investment attraction: An estimated €500 billion will be mobilized between 2031 and 2050, largely directed toward implementing the decarbonization strategy and developing new clean technologies. The circular economy, as a sustainable production and consumption model, will play a pivotal role in this economic revitalization.

2. Natural capital enhancement

• The critical role of carbon sinks: The strategy emphasizes the importance of natural capital, particularly carbon sinks like forests and oceans, in combating climate change. These sinks absorb CO₂ from the atmosphere, helping mitigate global warming.
• Conservation and restoration measures: Proposed actions include reforesting 20,000 hectares annually between 2020 and 2050, increasing forest cover by 4%, and restoring 50,000 hectares of wetlands by 2050. These measures not only absorb CO₂ but also enhance biodiversity and ecosystem conservation.

Plan your long-term Decarbonization strategy with Manglai

At Manglai, we specialize in carbon footprint measurement and the application of the GHG Protocol and ISO 14064 standards. Our solutions empower companies to implement the Long-Term Decarbonization Strategy, optimize processes, and contribute to building a sustainable future.

With our tools, businesses can:

• Accurately and automatically measure Scope 1, 2, and 3 emissions.
• Identify key emission sources and areas for improvement.
• Set emission reduction targets and develop customized action plans.
• Monitor progress on decarbonization strategies and generate sustainability reports.
• Access a network of partners specializing in decarbonization solutions.

We invite you to explore our solutions and contact us to discover how we can help you achieve your sustainability goals.