innovation for net zero

To meet the net zero target, unprecedented innovation will be required across society. Innovation will not only include inventing new technologies, but also new behaviours and ways of using existing technologies. There will also be the need to create novel consumer offerings, new business models, and most importantly, new policy, regulation and market design.

Companies that align their business strategies with climate science are best- placed to thrive as the global economy transitions to a net zero future by 2050. Companies should begin a transition towards a business model that continues to be viable in a net zero economy.

In addition to demonstrating moral leadership, implementing net zero related measures catalyses competitive advantages by driving innovation, boosting brand reputation, enhancing investor confidence and increasing resilience to future regulatory changes.

Transformative targets such as net-zero emissions can spark opportunities for innovation within an organization, release creative thinking and enable employees to challenge the status quo. 

Sensitive intervention points are crucial in the transition to net zero. A kick to the current state of the global climate system, can move it onto a new trajectory without any change in the underlying system dynamics.

In fact, a small kick can be effective when the system is chaotic or when it is near a critical point. The transition to renewables is a good example of a SIP, while it has so far only made a small reduction in emissions, it has the potential to accelerate decarbonization.

On the other hand, a shift in the underlying system dynamics, which changes the rules of the system can alter its trajectories substantially. For example in the socioeconomic-political sphere, a shift may require a change in key concepts and institutions.

The power of a small group of influencers where a committed minority with unwavering opinions can have an outsized effect on others whose opinions are undecided is another example of a SIP.

Two movements in particular, Fridays for Future and Extinction Rebellion which have received much attention in the global media, have shown capabilities of causing regime shift and shaping policies as they prompt global policy makers to action as regards reducing the rate of CO2 emissions globally.