Carbon neutrality has become a global effort. To date, over 150 countries have set deadlines, such as 2050, and declared that they will achieve carbon neutrality by that date. In response to this trend, the industrial sector is also becoming more active. Measures that are attracting attention in the manufacturing industry are reducing CO2 emissions in the manufacturing process and using clean energy. However, there are probably many manufacturing managers who are worried about not knowing where to start.
In this article, we will introduce the necessity of carbon neutrality in the manufacturing industry, specific measures, and concrete examples of efforts. Let's learn about carbon neutral efforts in the manufacturing industry and start planning measures for our manufacturing sites.
Carbon Neutral in Manufacturing
First of all, what exactly is carbon neutral?
What is carbon neutral?
Carbon neutral means bringing greenhouse gas emissions and absorption to zero. There is scientific evidence that greenhouse gas emissions are causing global warming and environmental destruction, and it is recognized that achieving carbon neutrality is essential to prevent further deterioration.
Why carbon neutrality is being sought in the manufacturing industry
Within the industrial sector, there is a strong demand for carbon neutrality, especially in the manufacturing industry. This is because CO2 emissions from the industrial sector account for 34.7% of Japan's total emissions, with manufacturing accounting for 94% of that. CO2 emissions from the transportation sector also account for a high proportion, at 18.6% of Japan's total emissions. As automobiles are a particularly large source of emissions, it can be said that carbon neutrality in the transportation sector is also related to the manufacturing industry, which produces automobiles.
Examples of carbon neutral initiatives in the manufacturing industry
What kind of efforts are actually being made in the manufacturing industry towards carbon neutrality? We will introduce some specific examples of efforts.
Examples of promoting energy conservation through visualization of energy
First, we will introduce an example of a factory that introduced a system that visualizes energy usage in real time.
This quantifies the necessary operating time and running time of equipment, and makes it possible to schedule the operating times of the equipment. By stopping the equipment when it is not necessary to operate, they have succeeded in reducing standby energy. They also succeeded in identifying the equipment that is causing peak power consumption, and by shifting the operating hours, they were able to reduce the contracted power consumption, achieving cost savings of approximately 10 million yen per year.
Examples of small and medium-sized enterprises that have converted all their electricity to renewable energy
As large companies work towards carbon neutrality, including their supply chains, small and medium-sized enterprises also need to step up their efforts to continue doing business with them. There is a small and medium-sized enterprise that has signed international programs such as "Science Based Targets" and "The Climate Pledge" and is using renewable energy for all electricity used at its manufacturing facilities.
The company is also working to support the introduction of renewable energy to its business partners and customers and to procure low-carbon products and services. This initiative received a third-highest rating out of eight from a British NGO in 2021. The company aims to reduce greenhouse gas emissions by more than the amount generated in its value chain by 2030.
The effects of carbon neutral measures on manufacturing
Going carbon neutral also brings benefits to companies, some of which are detailed below.
Productivity improvement and cost reduction
Working towards carbon neutrality will lead to more efficient energy use. For example, if production efficiency is improved by reviewing product composition and processing methods, the same amount of products can be produced with fewer devices. Fewer machines in operation means production activities can be carried out with less energy, which leads to reduced electricity and fuel costs. The saved costs can be directly converted into profits, making this a cost-effective measure.
Improving corporate competitiveness and value
By working towards carbon neutrality, you can appeal to your business partners that you supply environmentally friendly products. This will help you to receive orders from companies that are working towards carbon neutrality throughout the entire supply chain. By establishing your position as an environmentally friendly company within your industry, you can differentiate yourself from other companies. You can also gain an advantage in recruitment activities by promoting your brand as an environmentally friendly company.
Creating new businesses
Carbon neutrality can also lead to the creation of new businesses. In one case, an increase in profits from selling electricity generated by solar power, a renewable energy source, prompted a company to enter the renewable energy development business. This company has high expectations for entering new businesses, and is actively working on this as a pillar of its future business. Other local governments are also taking advantage of the region's ease of supplying renewable energy to attract companies. Bringing together a variety of companies is expected to lead to the birth of new businesses.
Challenges in promoting carbon neutrality in the manufacturing industry
Carbon neutrality is expected to bring various benefits to the manufacturing industry, but there are many challenges to promoting it.
Burden on small and medium-sized enterprises
Changing business models and replacing equipment with more efficient ones will place a heavy burden on small and medium-sized enterprises with weak financial resources. The automobile industry in particular has many small and medium-sized enterprises, and if carbon neutrality efforts are delayed, the weakening of the entire industry will be inevitable. For this reason, there is a need for government support for small and medium-sized enterprises and the introduction of preferential treatment.
Decreasing cost-effectiveness due to progress in energy conservation
Japan's manufacturing industry is one of the world's leading energy conservation companies. In other words, it can be said that most cost-effective measures have already been implemented. However, since high technological capabilities are required to achieve further efficiency, the return on investment in promoting energy conservation is no longer expected. In particular, in the power semiconductor industry, energy consumption is expected to increase due to the expansion of production facilities to meet growing demand, and investment in innovative technological developments that contribute to energy conservation will be essential in the future. Therefore, in order to respond to carbon neutrality, measures to maintain the motivation of each company are required.
Stable supply of renewable energy
It is said that it is difficult to provide a stable and cheap supply of renewable energy in Japan. According to the Agency for Natural Resources and Energy, the following reasons are cited:
- There are few plains
- Difficulty in sharing renewable energy with neighboring countries
- The area stretches from north to south and has large regional differences in weather conditions.
- Installation costs are high due to geographical conditions such as earthquakes and typhoons
In this situation, in order to promote the introduction of renewable energy by companies, it is necessary to unify energy conservation policies and renewable energy policies, and to have a system to evaluate corporate efforts. In addition, there is a need for off-site corporate PPA contracts (a system in which users purchase renewable energy generated by power generation companies at remote locations), which are efforts to promote stable supply, and deregulation to allow direct transactions without going through retail electricity companies. Furthermore, there is interest in efforts to promote a stable supply of renewable energy by applying blockchain technology to the renewable energy sector to prove that products were produced using renewable energy.
Carbon neutrality in manufacturing is important! Start now!
Scientific knowledge has demonstrated that efforts to achieve carbon neutrality are essential to prevent the progression of environmental destruction caused by global warming. The manufacturing industry has a high greenhouse gas emission rate, and is one of the industries for which there is a strong demand for decarbonization efforts. Using the examples of efforts introduced here as a reference, let's start by taking measures to achieve carbon neutrality.
Related article:
What is IoT use in the industrial sector? Explaining the key points of use with examples | Stratus Blog
What will change with DX in the manufacturing industry? Introducing the necessity and key points to address with examples | Stratus Blog
