Since the mainland explicitly proposed the 2030 "carbon peak" and 2060 "carbon neutrality" in September 2020, the concept of this combination called "double carbon target" has been widely known.
But double carbon is too far away for the general public, too much like a slogan. For many reasons, carbon reduction actions are indeed extremely difficult to sink to individuals, and carbon neutrality on the consumer side is objectively unlikely – for most people, buying a new energy vehicle and never burning gasoline may be the most environmentally friendly behavior in the eyes of many consumers.
However, there has always been a "fake environmental protection" criticism of electric vehicles: electric vehicles do not burn oil, but most of the charge is coal power, nothing more than kicking pollution to the power plant, and the key component power battery is still a large energy consumer.
So, what is the level of carbon emissions in the entire life cycle of an electric vehicle from production to final scrapping? How much does the power battery account for? Is an electric car more environmentally friendly than a fuel vehicle?
Let's start with a simpler question: What exactly does carbon emissions count?
Bionic 1 | author
Plain sauce | edit
Start with a "carbon ledger"
Carbon emissions are calculated at this stage based on the concept known as the "carbon footprint".
The Carbon Footprint refers to the total greenhouse gas emissions generated by individuals, events, organizations, services or products to measure the impact of human activities on the ecological environment.
The calculation of the carbon footprint is increasingly in demand, with life cycle assessment (LCA) considered by the European Commission to be the best framework for the current phase.
The life cycle refers to the entire cycle of a product (or service) from cradle to grave (cradle-to-grave), covering all aspects from the acquisition and processing of raw materials, product manufacturing, transportation, use and maintenance, to final recycling or disposal. Therefore, following the LCA methodology of ISO14040 and ISO14044, it is possible to comprehensively calculate the carbon emissions at these stages and thus assess their potential impact on the environment.
图片来源：Xia, X., & Li, P. (2022). A review of the life cycle assessment of electric vehicles: Considering the influence of batteries. Science of The Total Environment, 152870.
Taking the data given in the carbon footprint report released by Volvo as an example, we can see that the carbon footprint generated at different stages of the whole life cycle of the same model of fuel vehicle and electric vehicle due to the composition of the body structure and the energy used in the process will be different.
图片来源：Volvo Cars – Carbon footprint report – Battery electric XC40 Recharge and the XC40 ICE
As shown in the figure, the XC40 fuel vehicle model does not have a lithium battery pack, so the carbon emissions in the production stage are significantly lower than those of the charging version of the same model, but the large amount of carbon emissions caused by burning fossil fuels during actual use will still make its total carbon emissions throughout its life cycle at a very high level.
At the same time, the carbon emissions of the charging version of the XC40, which uses the relatively clean energy in the EU power grid, are significantly lower than those of the same model with less clean energy, but the emissions are still much higher than those of vehicles that are only charged with pure green electricity throughout their life cycle.
Obviously, even the least environmentally friendly electric vehicles have far lower life-cycle carbon emissions than traditional powered vehicles, and the use of clean energy can go further in reducing emissions.
This is enough to put an end to the question of whether electric vehicles are really environmentally friendly.
But this also means that in addition to further promoting the popularization of green energy, how to reduce the emission of power batteries for the core components of electric vehicles has become another key direction. In order to be targeted and formulate an executable emission reduction plan, it is necessary to find out what the carbon footprint of power batteries is. Where does high carbon emissions come from?
Calculating the carbon footprint requires a large amount of terminal data and complex scientific calculation methods, which are generally done by professional third-party institutions, and require enterprises to cooperate with data collection, which is costly. At the same time, the carbon footprint ultimately needs the certification of the relevant institutions to take effect, whether it can reach the authoritative institutions, assist in determining the carbon footprint accounting results given by the enterprise, and generate certifications that can be used for international trade, which is also a very important ability in the carbon neutrality process.
It is true that for most upstream and downstream lithium batteries, the creation of carbon neutral or even zero-carbon products has a long way to go - that is, it is necessary to establish a comprehensive carbon footprint, formulate relevant emission reduction strategies and paths, and also rely on solid investment, landing, and ultimately achieving emission reduction.
Already, companies are taking action.
On Earth Day on April 22, Envision Technology Group released the world's first batch of zero-carbon batteries.
Dr. Qiu Lin, Chief Scientist of The Group's Zero Carbon Products, introduced: "Based on the vision of intelligent Internet of Things technology and zero carbon system solutions, we have been the first in the industry to achieve the release and certification of zero carbon batteries. ”
Specifically, based on the full-life cycle approach (LCA method), Envision conducted a carbon footprint analysis from raw material mining to production of the EAHE2201A lithium-ion power battery of its battery technology company, Envision Power Supply Mercedes-Benz, and offset it through green electricity applications and carbon sink procurement, and obtained the "Carbon Neutrality Certification" (PAS2060) issued by the international authoritative certification body TüV SÜD, which is also the first carbon neutrality certificate issued by T V SÜD in the field of power batteries.
Xu Hailiang, head of T V Nande's new energy and zero-carbon service sector, said: "In the emissions of new energy vehicles, batteries contribute more than 30% of emissions, and zero-carbon power batteries will greatly help the industry to reduce emissions. Through meticulous verification and rigorous calculations, we have obtained the carbon emission data of Envision Power's battery that meets international standards. ”
The release of this result can prove the fact that despite the complexity of the process and the many difficulties, "carbon neutrality" is never just a slogan and a concept, but also an industrial practice that can be implemented.
At this point, many people may have another question: what is the purpose of such painstaking calculation of carbon emissions and carbon neutrality? Really just for the sake of environmental protection?
It's doctrine, it's business
Yes, carbon neutrality is inextricably linked to The Paris Agreement, a global climate change document signed in 2016, which aims to combat climate change and curb temperature rise, with a core idea of protecting the environment and ensuring the sustainable development potential of humanity in the future.
But reducing greenhouse gas emissions is not just a moral choice, it is an urgent economic issue today, and even the key to mastering pricing power in the era of the green economy.
Taking the current hot new energy vehicle industry as an example, in May 2021, at the 26th United Nations Climate Change Conference held in Glasgow, Volvo, Ford, General Motors, Mercedes-Benz, BYD and Jaguar Land Rover, a total of six auto OEMs, which is what we often call the vehicle manufacturers, jointly committed to achieving 100% zero carbon emissions in the production process of cars sold in developed markets around the world by 2035, and the car sales of these six OEMs have accounted for about a quarter of the total global car sales.
Carbon neutral timeline of the world's major multinational car companies
Among them, Mercedes-Benz has announced that it will achieve carbon neutral operation in its factories around the world by 2022, and further achieve the overall carbon neutrality of the entire industry chain of all vehicles from top to bottom by 2039. For a vehicle manufacturer with extensive factories around the world, this goal is ambitious.
Volvo Asia Pacific also announced at the Supplier Conference 2021 that in 2025, all Tier 1 suppliers in China must rely 100% on renewable energy for production activities, and invited major suppliers to sign up.
This kind of emission reduction target from downstream automobile OEMs, covering the entire supply chain, will undoubtedly force upstream suppliers to come up with their own emission reduction plans as soon as possible. Only when suppliers achieve carbon neutrality of products as soon as possible can they help enterprises reduce their burdens, ensure their continued existence in the new supply chain system in the future, and maintain close cooperation with OEMs. This is the first meaning of zero-carbon products.
In addition to supply chain pressures, there are also pressures from "carbon trade barriers".
In view of the booming battery industry and the huge potential impact of the entire life cycle of batteries on climate change and the environment, on December 10, 2020, the European Union issued a new battery regulation proposal to replace the primary battery directive (2006/66/EC), and the "Battery Directive" was also upgraded to the "Battery Regulation".
The new regulation adds a lot of new requirements to the original directive. So far, the new battery regulation is the most demanding, cumbersome and difficult to meet in the EU Green Product Regulation.
The latest Battery Bill requires that from July 2024, all batteries entering the EU be required to provide proof of carbon footprint. From 2026, the carbon footprint of batteries will be assessed and graded, and in 2027, an entry threshold will be set up to refuse the entry of batteries with carbon emissions exceeding a certain level.
Although there are still many details to be finalized in the regulation, the huge risk it represents is undoubtedly very real – if we do not reduce carbon emissions as soon as possible, it is still a question of whether we can still do business.
In addition to the "new battery regulations", the European and American markets are also tightening the "carbon tariff" policy for more industries.
On March 15, at a meeting of the Council's Economic and Financial Affairs Committee (ECOFIN), the finance ministers of the EU27 adopted the Proposal for the Carbon Boundary Adjustment Mechanism (CBAM) of France, the rotating presidency of the Council, also known as carbon tariffs. While many details of the proposal have yet to be finalized, some argue that this means that the EU's carbon tariff policy could be put in place in 2023.
Carbon tariffs, also known as border adjustment taxes (BTAs), are special carbon dioxide emission tariffs levied on exports of countries that do not have carbon or energy taxes in the country and have substantial energy subsidies, mainly an import tariff imposed by developed countries on high-emitting products imported from developing countries.
Leaving aside whether carbon tariffs are a disguised trade barrier and the debate about protectionism (and there is nothing companies can do about it), the most obvious impact of carbon tariffs on manufacturing is naturally the heavy additional costs of tariffs.
At present, battery products have not been included in the scope of carbon tariffs, but the possibility of being covered in the future cannot be ruled out. At that time, not only the domestic battery industry will be affected, but also the upstream and downstream of the industrial chain such as positive and negative material suppliers, equipment manufacturers, and car companies that are accelerating the pace of "going to sea".
We may wish to assume in advance what may happen at that time: in general statistical calculations, the corresponding carbon dioxide emissions of lithium batteries producing 1GWh are about 50,000 to 120,000 tons, depending on the proportion of thermal power in the local electricity supply. This means that a battery factory with an annual output of 20 GWh will produce more than 1 million tons of emissions, and when exported to the European market, this 1 million tons of carbon dioxide is calculated according to the current European carbon emissions futures price of about 80 euros /ton (CFD), which is an additional cost of 80 million euros (this is a rough estimation method, and the actual situation is based on specific carbon tariff standards).
If it can be solved with just money, tariffs of several hundred million yuan are not even the biggest problem. With the gradual implementation of relevant EU laws and regulations on climate change, the space for high-emission companies to mediate has become increasingly narrow, and carbon neutrality measures are being transformed from a plus for enterprises to a mandatory action item
Breaking down potential trade barriers and continuing to dominate the global dominance of mainland manufacturing in the future is the second meaning of zero-carbon products.
The third implication of carbon neutrality is to respond to societal concerns. At present, some consumers in the world, especially in developed countries in Europe and the United States, have long-term and high-intensity concerns about environmental protection issues. Unlike policies and supply chains, the impact of public opinion is often difficult to predict, but this does not mean that there is no risk – for example, Tesla's German factory has been repeatedly delayed because of environmental issues. Therefore, more environmentally friendly manufacturers naturally have more advantages in public relations activities, and the corporate image of "paying attention to social responsibility and emphasizing humanistic care" can help find partners and conduct business negotiations, which is especially critical for products to go to sea.
With a good understanding of the need for carbon neutrality beyond the environmental dimension, we can better understand the deep business logic behind the decisions of the participants in industrial production – for example, Envision Technology Group, which released the world's first certified "zero-carbon batteries" on Earth Day 2022, is certainly not just for the simple purpose of running an event.
Now that we know how to calculate carbon emissions and why we want to be carbon neutral, there is only one question left: how?
Zero carbon cannot be left alone
The carbon neutrality of power batteries comes down to energy. Whether it is the positive and negative electrodes, electrolytes, or metal foils, battery shells and other core components, are large users of energy and electricity, even if how to improve the process, improve efficiency, emission intensity is still at a high level. Therefore, whether we can achieve zero carbon in the energy use stage has become the key.
This is the current booming renewable energy sources such as wind power and photovoltaics, which offer excellent solutions. However, the problem is that the supply chain is scattered everywhere, and the green electricity prices and procurement difficulties faced by various enterprises are inconsistent, and it is difficult to coordinate.
Is there a model that allows upstream and downstream enterprises to coordinate energy use, unify energy supply, and make full use of green power to achieve common carbon reduction?
The answer is the zero-carbon industrial park model.
On April 8, 2022, Envision Technology Group completed and put into operation the first phase of the zero-carbon industrial park project in Ordos, which is an innovative attempt of this model.
Vision of Ordos Zero Carbon Industrial Park
One of the key features of this zero-carbon industrial park is to build on a new green power system, a clean, stable and efficient new power system formed by wind turbines, photovoltaics, energy storage and intelligent Internet of Things, providing 100% zero-carbon energy supply for production.
Of course, it is not enough to neutralize the production of batteries at the terminal, and how to help other parts of the supply chain to achieve carbon reduction is equally important.
Relying on the zero-carbon industrial park model, Vision can promote partners to invest in and build factories in the park through cooperation with upstream enterprises, so as to achieve common zero-carbon operation in upstream and downstream, and further activate the industrial cluster effect. It is particularly worth mentioning that Inner Mongolia has 57% of the country's wind energy resources, ranking first in the country. High-quality wind resources, coupled with the power generation capacity of the envisioned intelligent wind turbine, have achieved lower cost green electricity, coupled with the energy consumption mode of the industrial park, the price of green electricity provided by the zero-carbon industrial park is nearly 20% lower than the local industrial and commercial electricity price. This means that in addition to zero carbon production, enterprises in the industrial park can also achieve cost reduction at the same time.
However, the use of green electricity in the production process cannot be directly equated with zero carbon, and access to the necessary management system is also essential. The zero-carbon digital certification system based on enOS, an intelligent IoT operating system and Ark Energy Carbon Management Platform, gives products in the park a "zero-carbon green code" that can be traced back, meets various international standards, and is certified by authoritative institutions, so as to avoid various carbon taxes in trade activities.
Such a zero-carbon industrial park is a solution established by Envision Technology Group to adapt to the dual carbon goal and new global trends, but its potential is by no means limited to the production of power batteries. Other industries such as vehicle production, wind power machines, photovoltaic cells and other industries can apply this mode of operation to achieve carbon reduction goals.
Carbon reduction activities in the industrial chain can even go beyond the manufacturing of new energy vehicles and extend to the automotive aftermarket. For example, Envision once deployed envision Ark system at the DaxingFengtong Lexus Automobile Dealership in Shenzhen to collect and analyze energy consumption and emission data by connecting various devices to the intelligent Internet of Things platform, and designing a carbon neutral solution for the operation process for the store. Of course, carbon reduction throughout the life cycle is another broader and more complex topic.
epilogue
"Carbon peak" and "carbon neutrality" are indeed national strategies, the key to global sustainable development, and the doctrine of human future; but "double carbon" is also a business that can focus on an industry, a company, and a product - as its literal meaning, "green economy" is an environmental protection activity, but also an economic activity, and one-sided emphasis on either party is obviously contrary to its ideological core.
The significance of the zero-carbon industry is not only environmental protection, but also an opportunity for comprehensive industrial upgrading. There is a very common saying in the Internet industry, called "the traffic entrance of the next era", and perhaps we can also call the supply chain of net zero emissions the "cornerstone" of the next industrial era.
The tide of the times is unstoppable, so the voyage of a company and an industry starts from a zero-carbon battery, which is not bad.
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- Produced by Fruit Shell Business Technology Communication Department -