Decarbonizing the Energy Mix

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Climate change due to increasing Green House Gases (GHG) in the atmosphere is the biggest threat to survival of our specie on this planet. Our energy systems account for two third of the total GHG emissions as it’s dominated by coal, oil and natural gas based sources that not only release Green House gases such as CO2 and Ammonia into the upper atmosphere but also cause significant environmental pollution through emission of SOX, NOX and Particulate matter.

At Reon we believe in the following simple equation:

Electrification of energy use + Decarbonization of power generation = 90% reduction in GHG emissions

As we can see from above equation that electrification of global economy alone won’t solve the climate problem and has to be accompanied by decarbonization of power generation globally. Otherwise, if new demand is addressed through carbon heavy sources such as Coal and Gas then it won’t move the needle on GHG emissions.

Apart from the positive impact on climate change, decarbonization of energy will also have a positive economic impact in the form of increased health and lifespans of people and structures. According to a World Bank report, cost air and water pollution in China is roughly 5.8% of the GDP or 100B USD. Another report puts this cost at 36.8B USD annually for India.

Energy transition towards a decarbonized system is necessary if we have to fulfill our commitments towards the Paris agreement and preserve future of our coming generations.

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