More 2023 trends: EVs, onshoring, and the three ages of decarbonization

Decarbonization Ages

Nathaniel Bullard outlines the three ages of decarbonization, each building on the previous. The first age, driven by regulation and tariffs, focused on renewable energy with limited technologies like wind and solar. The second age, starting around 2012, marked the energy transition, expanding beyond regulations to include ESG and electrified transport. The current age, beginning in 2019, emphasizes net zero, transforming businesses to address all greenhouse gases and industries. Bullard notes, "It's about more than just power and it's about more than just biofuels and regulated carbon dioxide."

It's about molecules and it's about calories, and it's about all greenhouse gases, not just CO2, and it's about remaking industries.

--- Nathaniel Bullard

This evolution reflects a shift from isolated efforts to comprehensive strategies involving entire industries 1 2.

   

Net Zero Challenges

Achieving net zero emissions presents significant challenges, as Nathaniel Bullard and Shayle Kann discuss. Bullard emphasizes that net zero is more complex than previous phases, affecting all economic activities. He highlights the difficulty for companies to maintain their resolve amidst economic challenges. "Net zero is really difficult," Kann agrees, noting the potential stumbling blocks on this path.

The resolve to hit net zero, will that hold in light of challenges, accomplishing it, in light of economic challenges, both macro and micro?

--- Shayle Kann

The conversation underscores the need for strategic decision-making and expertise in corporate boardrooms to navigate these challenges 3 4.

   

Decarbonization Insights

Shayle Kann and Nathaniel Bullard provide insights into the broader themes of decarbonization efforts. They discuss the declining trend in global vehicle sales and the rise of electric vehicles (EVs) as a significant portion of the market. Bullard notes that while vehicle sales have declined, the growth in EVs is reshaping the automotive landscape.

Vehicle sales, motor vehicle sales have been declining over time overall.

--- Shayle Kann

This shift highlights the ongoing transformation in transportation, driven by technological advancements and changing consumer preferences 5.