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Google, AstraZeneca, and Vodafone UK among those joining new Climate Group initiative exploring how to match variable clean power generation to demand
Google, AstraZeneca, and Vodafone UK have joined a new initiative to support corporates in reforming their approach to green electricity procurement to secure access to 100 per cent clean power around the clock.
Launched at New York Climate Week yesterday, the Climate Group's new 24/7 Carbon-Free Coalition has launched a pilot project to shape efforts to help corporates build on their 100 per cent renewables targets by switching to fully carbon-free power supplies ahead of a planned wider campaign rollout in 2025.
The Coalition, which also includes Iron Mountain Data Centers, Shree Cement, and AirTrunk as founding partners, hopes to demonstrate how emerging energy storage and flexible grid technologies are making it possible for companies to access carbon free electricity 24/7, ensuring clean power provision matches corporate demand in real time.
Currently, many leading corporates have set net zero emission and 100 per cent renewable electricity targets. However, the variable nature of much renewables generation means companies tend to fulfil their 100 per cent renewables commitments by using power supplied by the grid - which is generated by a mix of sources - and then purchasing an equivalent amount of clean power.
Experts have argued that to deliver a fully decarbonised grid flexible grid technologies are required to better match clean power supply and demand. Businesses can support this trend, according to the Climate Group, by setting targets to move towards carbon-free power at all times.
"We are asking ambitious business leaders to go further to reduce carbon emissions by choosing to use carbon-free electricity 24 hours a day, seven days a week," said Helen Clarkson, Climate Group CEO.
"By taking this step, the 24/7 Carbon-Free Coalition's Founding Partners, and other corporates that change their electricity procurement, will help accelerate the roll-out of new renewables, advance battery and carbon-free tech, and eliminate the need for 'back-up' fossil fuels."
The Climate Group said 24/7 carbon-free electricity targets would encourage innovation through the deployment of a broad set of technologies, including more renewables capacity, improved battery storage systems, and flexible grid technologies that can provide access to clean power during periods of low generation.
Moreover, it claims corporate engagement with local grids would incentivise companies to engage with local policy makers and stakeholders to drive broader changes to the energy system.
"Google set a goal in 2020 to run on 24/7 carbon-free energy on every grid where we operate by 2030," said Kate Brandt, chief sustainability officer at Google. "Innovative partnerships are key to making 24/7 CFE a reality for everyone, and we're excited to work with other climate leaders on this important challenge.
"Whether you're already targeting 24/7 CFE or just getting started on your journey, together we can accelerate decarbonization in this critical decade for climate action."
Liz Chatwin, vice president of global sustainability at AstraZeneca, added that while firms may be at varying stages in their clean energy transition, considering 24/7 as their long term goal can provide an impactful way of accelerating renewable energy use.
"At AstraZeneca, we want to play a role in enabling the energy transition and a collective shift in corporate mindsets by demonstrating that 24/7 CFE is not only possible but brings many benefits," she said.
The launch of the 24/7 Carbon-Free Coalition coincides with the release of new research from the Climate Group and Ramboll revealing that almost half of global businesses are prepared to pay a premium for lower emission steel and concrete.
The report, The steel and concrete transformation: 2024 market outlook on lower emission steel and concrete, is based on a survey of more than 250 companies in 42 countries and 21 industries that assessed their readiness to use and willingness to pay for lower emission steel and concrete.
While the outlook is broadly positive, the report claimed cost remains the biggest barrier to adoption of green commodities - flagged by 84 per cent of those quizzed, while industry conservatism and lack of knowledge was cited by only around a third of respondents.
Industry figures were also clear that governments have a significant role to play by pulling financial levers such as tax incentives, credits, subsidies and carbon pricing, as well as deploying product standards or embodied carbon limits.
"Business leaders are not only calling for change - they're enacting it," said Jen Carson, Climate Group's head of industry. "This report is a real temperature check of the market. It's hugely encouraging to see the appetite is here, now, for organisations to pay a premium for lower emission steel and concrete. Actors across the value chain - suppliers, governments, and investors - should take note.
"But there's deep work to be done to speed up progress," added Carson. "It's critical that businesses can make the right choices for their operations, and the planet, and switch to lower emission steel and concrete. Governments must listen to their concerns, support their ambition, and act quickly to remove barriers. This way we can unlock corporate demand to drive real sector transformation."
The report came on the same day as a separate study from the Mission Possible Partnership (MPP), which made the case for new government-backed agencies to act as intermediaries in emerging green commodity markets, providing financing that would help reduce or remove the green premium commanded by low carbon steel, fertiliser, and other commodities.
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