A new study shows that converting to electricity and away from fossil fuels can have added benefits in addition to net-zero carbon emissions.
- Electrification is the process of converting oil- and gas-powered energy producers that produce carbon emissions into electric producers such as electric vehicles (EVs).
- Schneider Electric is a French multinational energy management company that helps with infrastructure, industrial, and construction solutions.
- Its new study shows that electrification is not only necessary for carbon emissions reduction but can provide benefits, Fortune reports.
- Electrified HVAC systems will benefit from lower electricity costs, which are expected to rise 14.1% as opposed to fuel heating prices increasing as much as 94%.
- EVs, despite a large upfront cost, have a lower cost over their operational lifespan due to lower fuel and maintenance requirements.
- Industrial processes can operate on electrified processes and lower energy needs for producing important materials like cement and steel.
Why it’s News
A recent study commissioned by Schneider Electric says that chief executive respondents ranked electrification lower than other sustainability alternatives. The International Energy Agency identifies electrification as one of the top four priorities for meeting the goals of the green revolution, Fortune reports.
“We need to cut down the glut of carbon emissions fast. And yet, ironically, business leaders seem to be overlooking one of the top decarbonization levers: electrification,” says Schneider.
Schneider claims that electrification can reduce as much as 31% of total emissions. Incentives from the Inflation Reduction Act now make electrification easier and more widely available than ever before to transition away from fossil fuels. Leaders need to take action though and “act outside of the box” to find unique solutions for climate issues—and benefits will come with it.
“Business leaders’ mindsets around electrification certainly need to change. But pursuing electrification requires more than a new mindset—it requires a method,” it continues.
“I love reading and listening to Tim Ferriss. He’s an entrepreneur and investor who popularized the idea of the four-hour workweek. He once said that ‘it isn’t enough to think outside the box. Thinking is passive. Get used to acting outside the box.’ Thinking outside the box is not earth-shattering, but the reminder to act outside the box is one we all can heed when it comes to decarbonization,” says Schneider VP Michele Hix.