A Bright Start at COP28: Progress and Pledges for a Sustainable Future with Technology as a Key Enabler | Blog

Our Everest Group team is pleased to share their analysis of positive developments from the first two days of COP28, with a specific focus on the global technology and tech services industries, in this blog. With positive momentum building, the outlook in the collective journey toward a more sustainable future is looking brighter.

Day 1: A historic leap forward

Creation of the loss and damage fund for the global south

The first day of COP28 was nothing short of historic. The formal creation of the Loss and Damage Fund for the Global South was a key highlight. This initiative marks a crucial step in addressing the disproportionate impact of climate change on vulnerable nations. The commitment of US$400 million in pledges is a testament to the global community’s dedication to creating a more equitable and resilient world.

Contributions from multiple nations to support climate adaptation in vulnerable regions

Notable contributors to the fund include the COP28 hosts, the UAE, with a generous pledge of US$100 million. Germany and the US also stepped up, pledging US$100 million and US$17 million, respectively. The UK, demonstrating its commitment to climate action, pledged £60 million. These pledges will undoubtedly play a pivotal role in supporting climate adaptation and mitigation efforts in the most vulnerable regions.

What does this mean for the sustainability enablement services market?

The funding can act as a political push for these nations to adopt technology to enable sustainable businesses and mitigate climate risks. Currently, Everest Group has observed a surge in sustainability technology adoption in developing countries. Environmental, Social, and Governance (ESG) data reporting, Artificial Intelligence (AI)-driven crop management, and Internet of Things (IoT)-led water management solutions are gaining traction. Evolving reporting standards and the imperative for climate-resilient business practices will drive the scalability of sustainability-enabling technologies in these regions.

Day 2: The United States takes center stage by addressing methane management as a crucial step for reaching net zero emissions

Environmental Protection Agency (EPA) announces regulations on methane leaks

The second day of COP28 brought a wave of positive news, particularly from the United States. Michael S. Regan, Administrator of the EPA, announced groundbreaking regulations aimed at addressing leaks of greenhouse gases (GHGs) like methane. Methane, the second most abundant greenhouse gas, contributes significantly to global warming.

Methane management requires predictive technologies and strict reporting frameworks

Efficient methane management requires precise methane measurement and prioritizing reporting. While the EPA has taken an important step towards regulating methane leaks, methane-emitting industries (like oil and gas) need to move towards a ‘predict and prevent’ model of methane management. These industries should leverage AI and IoT-based methane management platforms that track and measure methane emissions and prevent methane leaks using predictive analytics.

Duke Energy, for example, has collaborated with Accenture and Microsoft to build a first-of-its-kind, end-to-end Azure-based cloud platform that monitors baseline methane emissions from natural gas distribution assets (e.g., pipelines, gas meters), using satellite monitoring, analytics, and AI.

Industry coalitions underpin methane management, as players recognize the value of collaboration in reaching net zero emissions

The Global Decarbonization Accelerator, a coalition of 50 oil and gas companies representing over 40% of global production, made a resounding commitment to reduce methane emissions by 80-90% by 2030. This ambitious pledge demonstrates a growing industry recognition of the urgent need to transition towards cleaner and more sustainable practices.

In addition to industry commitments and public sector regulation, philanthropic efforts also took the spotlight. Bloomberg Philanthropies unveiled a $40 million program focused on transparency and accountability in methane reduction initiatives. This program is a crucial step towards ensuring that efforts to curb methane emissions are not only ambitious but also measurable and accountable. We see the potential for scaled partnerships with the private sector. A model of shared responsibility and accountability, with collaboration as a central vision, is necessary for methane mitigation.

What does this mean for the sustainability enablement services market?

The players in the sustainability enablement services landscape can expect higher demand for net zero services, along with solutions like emission management platforms and tools. Technology players and service providers should focus on forming collaborations with their client groups to advance research and pilot more solutions in this space.

Moving forward with optimism

As we reflect on the first two days of COP28, it is clear that we are witnessing a historic turning point in the global fight against climate change. The establishment of the Loss and Damage Fund, coupled with significant pledges, coalitions, and regulatory advancements, sends a powerful message that the world is ready to take bold action.

Everest Group constituents in the global technology and technology services industries have an important role to play in these efforts. We remain committed to helping providers navigate the sustainability enablement opportunity to help guide their clients toward a more resilient and environmentally conscious future.

As we continue our journey through COP28, let’s remain optimistic and committed to the shared goal of a sustainable and resilient future. Together, we can turn these pledges into impactful actions that will benefit not only our current generation but also those to come. Reach out to Rita Soni, [email protected], Arpita Dwivedi, [email protected], Meenakshi Narayanan, [email protected], or Ambika Kini, [email protected] for further discussion.

To learn more about key takeaways from the COP28 conference, watch our LinkedIn Live session, Building a Sustainable Future: Reflections on COP28 and Insights for 2024.

Promoting Advanced Technologies at COP28 Can Propel Immediate Energy Optimization Action | Blog

As nations gather at COP28, prioritizing technology-driven optimization can pave the way for sustainable energy progression. Explore how advanced energy monitoring and optimization technologies can help enterprises transition from fossil fuels to renewables.

Note, this blog is part of Everest Group’s continued coverage of COP28. For our analysis of the first two days of the United Nations Climate Change conference, see our prior posting.

COP28 marks a crucial moment for discussions on moving from fossil fuels to renewables. This year’s meeting is especially important as nations reveal their plans for tackling climate change. The urgency is clear, highlighted by the Global Stocktake revealing the world is falling short of the Paris Agreement goals. COP28 is a key moment for the energy sector, offering an opportunity for governments to make bold commitments and speed up the transition.

In this context, enterprises worldwide are increasingly recognizing the imperative to transition towards renewable energy sources, driven by both environmental concerns and a growing commitment to sustainable practices. The appeal of renewables, such as solar and wind power, lies in their potential to mitigate climate change and reduce dependence on finite fossil fuels. However, despite this burgeoning enthusiasm, enterprises encounter a myriad of constraints in their quest for increased renewable energy adoption. Let’s explore this further.

Enterprises face these major obstacles in realizing their ambitious energy transition agenda:

• High initial investment costs: The transition to renewable energy often involves significant upfront capital expenditures for the installation of solar panels, wind turbines, or other clean energy infrastructure. Many enterprises, particularly smaller businesses, find it challenging to justify these initial costs despite the long-term benefits
• Intermittency and reliability concerns: Some renewable energy sources, such as solar and wind, are intermittent and dependent on weather conditions. This unpredictability can lead to concerns about the reliability of energy supply, especially for businesses that require a continuous and stable power source
• Regulatory hurdles and policy uncertainty: Enterprises operating in different regions face varying regulatory frameworks and policies related to renewable energy. Inconsistent or unclear regulations can create uncertainty and hinder long-term planning for energy transition strategies
• Limited availability of suitable infrastructure: The implementation of renewable energy projects often requires ample space and specific geographical conditions. Finding suitable land or locations for solar farms, wind turbines, or other renewable facilities can be a logistical challenge, particularly in densely populated areas where land is scarce or expensive

Amidst these challenges, the shift from fossil fuels to renewables finds a bridge in the optimization and monitoring of existing energy usage through advanced technologies. Leading enterprises have started joining forces with tech players and service providers to track and enhance energy efficiency in operations, paving the way for a sustainable energy transition.

Despite a booming market in sustainability enablement services offering advanced energy-efficient solutions, enterprises hesitate due to cost concerns. Yet, key players are actively investing in cutting-edge technologies to drive energy efficiency for their clients.

Three standout solutions have emerged at the forefront of major players’ sustainability services portfolios:

• Artificial Intelligence (AI) and Internet of Things (IoT)-based energy monitoring: Revolutionizing energy optimization, IoT and AI-based systems offer real-time insights into consumption patterns. Smart sensors and meters seamlessly integrate into a connected network, continuously collecting detailed data. AI algorithms analyze this information, unveiling inefficiencies, anomalies, and optimization opportunities. The power of predictive analytics forecasts future energy demands, enabling proactive measures to mitigate inefficiencies and cut overall consumption. Infosys Energy Management Solution and TCS Clever Energy are examples of energy monitoring and tracking systems
• AI-driven predictive maintenance: With artificial intelligence, predictive maintenance transforms energy optimization by foreseeing and addressing equipment issues before performance impact. Historical and real-time data analysis allows AI algorithms to predict faults, facilitating timely interventions that prevent unexpected downtime and associated energy inefficiencies. This data-driven, proactive approach reshapes traditional maintenance paradigms, significantly contributing to enhanced energy efficiency and operational excellence. Capgemini’s predictive asset maintenance services and Accenture’s intelligent asset management services are examples of AI-driven predictive maintenance solutions for enterprises
• Occupancy and building management with AI: AI-driven systems for occupancy and building management contribute to energy efficiency by intelligently regulating lighting, heating, and cooling based on real-time occupancy data. Smart sensors and AI algorithms learn patterns of occupancy, preferences, and environmental conditions to optimize energy usage in commercial buildings. Infosys’ Smart Spaces offering focuses on energy efficiency for commercial buildings, data centers, and workspaces. Hitachi’s Intelligent Building Management System also focuses on making buildings more energy efficient

Service providers have started crafting umbrella brands for sustainability services, with energy monitoring taking center stage in their portfolios. While energy monitoring and reporting systems are branded as niche sustainability solutions, the environmental impact of solutions like predictive maintenance and smart building management systems are significant. As enterprises intensify net-zero commitments, we foresee a surge in demand for these solutions, with a special focus on sustainability. We are optimistic about the market, with a tinge of prudence.

While sophisticated energy monitoring and optimization solutions are plentiful, enterprises hesitate to invest in sustainability technologies due to perceived high costs and short-term return concerns. However, service providers are strategically bundling sustainability benefits with operational optimization engagements, along with providing niche energy-related solutions to enterprises.

Everest Group anticipates a surge in the energy-efficiency solutions market within the next two to three years. The forthcoming focus on energy efficiency at COP28 could serve as the catalyst needed to propel this market into flourishing growth.

To discuss further, reach out to Rita Soni, [email protected], Arpita Dwivedi, [email protected], Meenakshi Narayanan, [email protected], or Ambika Kini, [email protected].

To learn more about the progress made in 2023 to build a more sustainable future and key takeaways from the COP28 conference, watch our LinkedIn Live session, Building a Sustainable Future: Reflections on COP28 and Insights for 2024.