What is decarbonisation (and when did the term emerge)?
In essence, decarbonisation is the process of reducing and ultimately eliminating carbon dioxide (CO₂) emissions generated by human activities. It involves phasing out fossil fuels, replacing them with renewable sources, and overhauling how energy—and ultimately, business—is made, delivered, and used. It’s not just switching on a solar rooftop; it’s remaking systems end-to-end.
While the idea gained public urgency after the 2015 Paris Agreement, the term itself goes further back. It was first used by researchers Yoichi Kaya and Kenji Yamaji in the context of energy systems, and further developed by IIASA to describe long-term shifts in global energy use
Why does decarbonisation matter?
It’s no exaggeration to say that decarbonisation was the only way to give the Paris Agreement a real chance. As global CO₂ levels soared—driven by industrial activity, transportation, agriculture, and more—it became clear: we are riding a one-way train toward irreversible warming.
For businesses, stepping up matters because:
- Extreme weather and climate disruption are real threats—not just to communities, but to assets and supply chains.
- Investors now expect climate-aware business models as much as financial ones.
- Smart decarbonisation isn’t just about doing good—it’s often about cost-saving (like energy efficiency), innovation, and resilience.
What does good decarbonisation look like?
Good decarbonisation isn’t just setting net-zero promises—it’s building a holistic transformation:
- Embedding climate thinking across governance and operations;
- Moving from “extract–use–discard” to circular, resource-light models;
- Treating carbon costs as real financial levers (like internal carbon pricing);
- Getting ahead by linking climate and finance strategies—not treating them as separate silos.
How do you set decarbonisation targets?
Start with your current emissions—a full GHG inventory (Scopes 1, 2, and 3). Then, set science-based targets that align with the Paris goal of limiting warming to well below 2°C. That involves:
- Knowing where your emissions are largest—be it energy, logistics, or suppliers.
- Modeling realistic reduction pathways using tools like carbon budgets or internal carbon pricing.
- Embedding responsibility with clear milestones and accountability.
What is net zero—and how does decarbonisation get us there?
Net zero is the point where the greenhouse gases released are balanced by those removed from the atmosphere. Decarbonisation gets you most of the way there—but absolute elimination is rare.
Beyond cutting emissions, businesses often need carbon removal (think reforestation, CCUS) to address what’s unavoidable. And new rules—like ISO 14068—are making sure “carbon neutral” claims are backed by quality, not just hot air.
The future of decarbonisation for businesses
The road ahead is both urgent and hopeful:
- Governments may hesitate, but businesses can lead—saving hundreds of billions through efficiency and digital transformation.
- Innovators are reshaping traditional industries—like AI-driven food waste reduction or electrified heating.
- True decarbonisation won’t happen without new technologies, capital, and regulation—meaning businesses must invest, experiment, and partner.
- Even today, too few businesses have a netzero plan or even a footprint baseline—so the opportunity to lead is wide open.
How businesses can decarbonise—and reach net zero ?
Put simply, it’s a structured journey:
- Measure your baseline—get your emissions mapped.
- Build internal consensus and governance—make climate a leadership priority.
- Set science-based targets—aligned with global pathways.
- Prioritize high-impact levers—like energy efficiency, electrification, circularity.
- Invest in data and digital tools—to monitor, model, and report.
- Engage suppliers and partners—you can’t decarbonise alone.
Ready to make decarbonisation practical and powerful?
Credibl transforms decarbonisation from a promise into a measured, transparent, and impactful journey. Here’s how:
- Build your complete emissions baseline across Scopes 1, 2, and 3.
- Set and monitor science-based targets that align with net zero.
- Automate data collection—from internal operations to supplier inputs.
- Model decarbonisation pathways and track progress over time.
- Generate audit-ready sustainability reports that reflect your real climate leadership.
Take the lead. Make decarbonisation your strategic advantage. Discover how Credibl can help you decarbonise with clarity and confidence.