Rapid decarbonisation is possible with the help of 15 existing climate technologies, UBS Institute has revealed in its latest report, Green Hockey Sticks.
The report analysed the deployment rate and commercial competitiveness of 15 climate technologies that either (i) reduce emissions by improving efficiency, (ii) substitute carbon-intensive energy sources with more sustainable and renewable ones, or (iii) neutralise emissions by removing them from the atmosphere.
It found several climate technologies are fast approaching or have passed tipping points where they may begin outcompeting incumbents, such as solar PV, wind, and utility-scale batteries. This comes as other important technologies also likely to surpass tipping points before 2030, including battery electric vehicles, trucks, and heat pumps.
However, other technologies may not reach tipping points until 2035 including synthetic fuels like green ammonia and power-to-liquids, because green premium remains too high to move into the mass market, and engineered carbon removals, such as direct air capture or carbon capture and storage. The report claimed these will be “essential tools” to remove carbon from the atmosphere, especially in the 2040s.
Further, UBS claimed in the report that scaling these technologies could reduce around 200 gigatons of GHG emissions. This is enough to meet 70% of the 1.5ºC carbon budget set by the Global Carbon Project.
UBS suggested that scaling climate technologies requires companies to clear minimum price and quality hurdles, giving them the competitive edge to scale the market.
William Nicolle, lead author of the report and ESG analyst at UBS Institute, said: “Anticipating where commercial tipping points lie and when they may trigger is important for a range of decisions.
“Policymakers need sight of these trends to inform tax, subsidy and regulatory options. Financial markets need sight of probable risks and rewards to inform investment and lending decisions. Companies forming a transition plan need a reliable idea of climate tech’s future commercial viability to plan how and where to invest today.”
