Energy Transition to Respond to the Climate Crisis

The global energy market is changing rapidly. In addition, disasters caused by rapid climate change, such as large-scale wildfires, are changing lives completely. The aftermath is not only damaging the environment but also extending to the economy and finance. The word that defines the above crisis is ‘Green Swan.’ Green swan is a term that first appeared in a report by the Bank for International Settlements (BIS) in January 2020 and refers to an economic or financial crisis caused by climate change.

However, the author of <Green Swan>, John Elkington, described Green Swan as a solution that promotes changes in the market. In other words, it was defined as a solution that seeks to recover and regenerate the world economy, society, politics, and environment in the crisis.

The Intergovernmental Panel on Climate Change (IPCC) has warned that the ecosystem will be catastrophic if the global average temperature rises by 1.5°C from pre-industrial levels. If innovative solutions are not found, economic and financial crises will inevitably occur, along with environmental destruction. In responding to the situation, energy conversion was presented as the most fundamental solution. The leading cause of increasing global average temperature is the emission of greenhouse gases. Among greenhouse gases, carbon dioxide is primarily generated by fossil fuels. Therefore, an energy transition that can reduce the use of fossil fuels is the necessary way.

There are three purposes of the energy transition. First, we need a sustainable energy supply for the future. The essential purpose of the energy transition is to realize a sustainable energy supply in three areas: electricity, heating, and transportation. According to the general definition, the energy of a sustainable energy system is conditioned on the condition that it will not only sustain the current lifestyle but will also be sufficient to achieve better conditions in the future. It does not mean the energy transition is returning to a pre-fossil fuel era. Instead, it is necessary to find a way to not irreversibly exhaust the environment and resources without giving up the convenient lifestyle of modern people.

Next, humanity needs to respond to climate change in the future. One of the essential purposes of the energy transition is to respond to climate change by reducing carbon emissions in the energy sector. Previous studies have demonstrated a causal relationship between the number of greenhouse gases in the atmosphere and the average temperature. Therefore, greenhouse gas emissions must be limited to a certain level to reduce the extent of climate change.

Finally, although technological, economic, and environmental factors are important, the energy transition is ultimately for us all. Therefore, energy conversion must also meet ethical and social standards. If fossil fuels are produced only in some areas of the planet, it is impossible to distribute them equally to all countries as a commodity. In addition, it is impossible for future and present generations to share the same energy resources as a commodity with a limited total amount.

Therefore, it is necessary to increase the development and use of new and renewable energy that can reduce the generation of carbon dioxide. Businesses are also starting to take the lead as part of their energy conversion solutions and looking for the long term. Shipping companies [DHL, UPS, and FEDEX] also offer a range of solutions to minimize environmental degradation along the entire supply chain, such as emissions and sustainable fuel use.

For example, “With the latest purchase of approximately 60 million liters of Sustainable Marine Fuel, DHL will reduce a total of 180,000 tons of TW-CO2e on both FCL and LCL shipping until 2024,” says an official release from DHL. DHL aims to achieve net zero-emission by 2050 while signing a contract with Good Shipping. FedEx is also committed to providing a more sustainable future, including a goal of operating carbon neutrality by 2040. Finally, UPS offers successful solutions to help you achieve your sustainability goals. “We’re using both liquid natural gas (LNG) and compressed natural gas (CNG) as bridging fuels to increase our use of RNG. It will have a measurable impact on RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions compared to conventional diesel.”

Now is the era in which logistics also requires speed, convenience, and sustainability. Even warehouses emit a lot of carbon. Lighting, refrigeration, and air conditioning equipment are among the biggest electricity consumers and affect the environment. PNPLINE will also develop to maximize efficiency by controlling the warehouse in real-time by applying an automation system for sustainable energy. PNPL Logistics innovation of PNPLINE for a sustainable future! PNPLINE’s logistics efforts for the planet and the future, including zero carbon emissions by 2050, will continue in the future.

Would you like to join us? http://www.pnpline.com/

Reference

Patrick, B., Morgan. D.,
Luiz, S., Frederic, S., and Romain, S. (2020) The green swan. BIS.
Reference from https://www.bis.org/publ/othp31.htm

Jeroen, K. (2022) What
Are Green Swans And Why They Matter. Forbes. Reference from https://www.forbes.com/sites/jeroenkraaijenbrink/2022/03/29/what-are-green-swans-and-why-they-matter/?sh=42dcbf74936d

IPCC. Global Warming
of 1.5 ºC. Reference from https://www.ipcc.ch/sr15/

Our Correspondent.
(2022). DHL Global Forwarding, GoodShipping sign deal for sustainable fuel. Logistics
update AFRICA. Reference from
https://www.logupdateafrica.com/shipping/dhl-global-forwarding-goodshipping-sign-deal-for-sustainable-fuel-1346922?infinitescroll=1

UPS. (2021). Renewed
focus on renewable energy. Reference from
https://about.ups.com/sg/en/social-impact/environment/climate/renewed-focus-on-renewable-energy.html

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