Decarbonization Pathways: Accenture's Comprehensive Analysis of Global Industries

Accenture has conducted a comprehensive analysis and research with industry partners on the carbon reduction pathways of various industries globally. The power, transportation, industrial, and construction sectors account for over 80% of carbon emissions, with power and industrial industries being the main areas for emissions reduction, expected to achieve up to 60% of the total reduction target. The transportation industry, the third-largest sector for emissions reduction, can also achieve 20% of the total reduction target.

The main contributor to carbon emissions in the transportation industry is automobiles, including passenger cars and transport vehicles, with gasoline and diesel vehicles being the main culprits. Therefore, the core initiatives for emissions reduction in the transportation sector include two aspects: the replacement of fossil fuel vehicles with new energy vehicles, and the extensive use of low-carbon and recyclable materials in the manufacturing of automobiles.

1. Electric Vehicles (EVs) for Low-Carbon Transportation The replacement of fossil fuel vehicles with EVs is a critical link in the low-carbon development of the transportation industry and even determines the decarbonization progress in the sector. Judging by the entire lifecycle, a pure electric vehicle can reduce about 40% of CO2 emissions compared to a pure oil vehicle of the same size. By the end of 2022, China's new energy vehicle inventory exceeded 13 million, with annual production and sales of nearly 7 million vehicles, showing strong development momentum. In China, the European Union, and the United States, the average share of EVs in total vehicle sales is expected to rise to around 60% by 2030.

With such large-scale new energy vehicles, especially EVs, the effect of emissions reduction will be concentrated and the technological development of power batteries is the main value creator for emissions reduction in the transportation sector. However, the recycling, reuse, and harmless disposal of batteries will be an important link in the development of the EV industry. Therefore, the standard setters and practitioners of EVs need to provide end-to-end solutions for the entire lifecycle of power batteries for vehicles to ensure the effectiveness and integrity of emissions reduction goals.

2. Continuous Emissions Reduction Initiatives in the Automotive Industry Emissions reduction in the automotive industry includes emissions reduction in the production process and low-carbon components in vehicles. Unlike the power industry, where about 90% of carbon emissions come from the production process, carbon emissions in the production process of the automotive industry account for less than 40% of the overall carbon emissions in the industry chain. Due to the unique nature of the automotive industry, emissions reduction actions require carbon assessment throughout the entire lifecycle, focusing on the five key aspects of the automotive industry, including procurement (raw materials, components, and third-party services), production, sales, use, and recycling and scrapping. Attention should be paid to the construction of green industry chains to seek the best emissions reduction measures. For example, the use of steel materials in vehicles is gradually decreasing, while the use of chemical materials such as plastics and rubber is increasing. Automotive chemical materials mainly include rubber, plastics, coatings, textile fibers, filling materials, airbag materials, and composite materials. The innovation, low-carbonization, recyclability, and harmless disposal of these materials also have significant value contributions to the comprehensive emissions reduction and emissions reduction in the automotive industry.

3. Digital Platforms Supporting Low-Carbon Transportation Low-carbon transportation can have a significant impact on vehicle production and replacement of fossil fuel vehicles with new energy vehicles, but the efficiency of the transportation process, such as freight logistics, empty travel rates, and the efficiency of personnel travel, must not be overlooked. Digital platforms, especially the application of intelligent transportation, provide huge support for improving transportation efficiency. Digital platforms also play a significant role in supply chain planning and efficiency and can create low-carbon value for transportation operations. Moreover, this area will continue to improve through the application of AI technology, providing efficient services for transportation and feasible measures for continuous emissions reduction.