To prevent the rise in temperature in Latin America, implementing strategies to achieve net-zero CO₂ emissions is required. Decarbonization plays a fundamental role, and therefore, the Paris Agreement indicates that this action must occur within the context of sustainable development that does not neglect efforts to eradicate poverty, particularly within the business and economic sectors.
Eight years after the signing and ratification of the Paris Agreement, innovation and technology play a crucial role in Mexico's journey towards energy efficiency. According to the Development Bank of Latin America and the Caribbean, Mexico is the second Latin American country with the highest greenhouse gas production. The goal remains the same: to ensure that the global temperature increase does not exceed an average of 2°C by the end of the century and to strengthen political efforts to limit this phenomenon to 1.5°C.
The Latin American Context
According to the World Bank, Latin America produces 8% of global greenhouse gas emissions and is perhaps one of the most vulnerable regions to the effects of climate change. It's worth noting that in 2020, one of the most catastrophic wildfire seasons in history occurred in the Pantanal region, and storms and hurricanes broke records in the Atlantic, with two category 4 hurricanes affecting over 8 million people, causing damages estimated in tens of billions of dollars.
For Latin American countries, efforts to promote sustainable practices must be decisive and urgent. A 1.5°C increase for the region could mean a reduction in income for more than half the population by 40%, plunging 2.4 to 5.8 million Latin Americans into extreme poverty by 2030, as predicted by the "Roadmap for Climate Action in Latin America and the Caribbean 2021-25". This would not only negatively impact the region but also have a significant adverse effect globally, as Latin America is the main food exporting region and holds 50% of the world's biodiversity, according to the CAF.
Feasible Decarbonization and Sustainable Practices
Achieving this structural transformation presents a challenge for governments, individuals, and businesses alike, as making fundamental changes in many areas in a short amount of time is not easy. However, a successful case of the correct use of decarbonization technologies to drive joint actions towards a more sustainable economy and society is that of Costa Rica.
The Central American country possesses 4% of the world's biodiversity and has managed to maintain 39% of its area in a natural or semi-natural state with very low human impact. Currently, it is the only nation worldwide to have achieved 83% of its decarbonization and carbon footprint reduction goals, according to the United Nations.
In the case of Mexico, both decarbonization and development actions must go hand in hand. Studies reveal that to achieve goals similar to those of Costa Rica, there needs to be an average reduction of total emissions by 6.8% annually, supported by an 8.1% decrease in energy intensity, plus a 4.4% reduction in carbon intensity in the main greenhouse gas-generating sectors, which implies multiplying the current rate of decarbonization of the economy by approximately 10.
It All Begins with Measurement
To achieve this goal, public policies have established new guidelines that promote economic activity towards decarbonization, requiring Mexican companies to comply with new regulatory requirements. Part of these guidelines involves emissions accounting, which requires, first and foremost, a measurement strategy. However 91% of companies do not measure their complete emissions.
For companies to start measuring their emissions, they require an ally that allows them to monitor, manage, and inventory their total carbon footprint, establishing an accurate baseline and highlighting critical emission points.
More than 70% of emissions are found in the supply chain. Oxtron’s specialized carbon accounting engine calculates all emissions according to the Greenhouse Gas Protocol. This technology can detect emission intensities in different activities such as:
Stationary combustion
Mobile combustion
Leaks and refrigerants
Biogenic
Electricity purchase
Location-based
Market-based
Heating and steam
Transportation and distribution
Business travel
Employee transportation
The Technological Route to Net Zero Culture
Decarbonization-focused technologies and innovations are key to achieving the necessary transformation of industrial, commercial, and social processes. Measurement, capture, storage, and management of carbon emissions stand out as an ally for businesses in various industries, as it not only allows them to reduce their environmental impact but also opens up new lines of business through the transformation of stored emissions.
While it is true that in Mexico, the implementation of decarbonization strategies needs to be approached from various points and public policies, the reality is that the role played by the business ecosystem is fundamental in driving these actions for public and environmental welfare.
An example of how business action can drive decarbonization policies is through the carbon markets that are gaining momentum today. One way to accelerate climate action is through Voluntary Carbon Markets, which record a 60% year-on-year increase globally, according to the Inter-American Development Bank. Through these markets, it is possible to send the right signals to both private sector and governmental actors to grow demand and create market mechanisms for the development of new price-fixing policies.
Companies from all industries can participate in these markets through comprehensive CO₂ capture and storage technologies that allow them to leverage their emissions and improve their production cycles. Through capture, companies can reduce between 40-60% of their emissions and trap up to 3.6 tons of carbon dioxide monthly with an integrated system that combines measurement with capture and provides detailed, comprehensive reports aligned with the National Emissions Registry (RENE) and the Greenhouse Gas Protocol, ensuring compliance with current and future regulations.
The mentioned report from the IDB highlights Mexico as one of the pioneering countries in promoting sustainable practices, benefiting businesses that are already transforming their processes in favor of the environment.
Oxtron, a CleanTech technological solution focused on decarbonization, helps companies reduce their carbon footprint through SaaS software and specialized hardware for the measurement, control, and capture of greenhouse gases, enabling them to open new horizons of productivity while aiding global efforts to reduce global warming.