Insights | CFP Energy

Effective Carbon Management: A Guide for Manufacturers

Written by Oliver Wood | 24 December 2024

 

With rising energy costs, increasingly complex emissions mandates like the UK Emissions Trading System (UK ETS), and a growing scepticism about additionality claims, carbon management has never been more critical.

At CFP Energy, we support businesses through the energy transition. To see how we can manage your decarbonisation and help you meet ETS obligations before free allocations run out, please contact our carbon team today.

Why Implement Carbon Management?

Carbon management starts with measuring your carbon emissions, whether generated onsite or downstream in your logistics network.

Once the relevant emission sources have been pinpointed, the next step is reporting and implementing meaningful reductions. Cutting emissions in manufacturing can be achieved in several ways - by ensuring that factory equipment is running efficiently, that compressed air systems aren’t bleeding energy, and that on-premise lighting or HVAC setups are fully up to date.

Tools and Technologies within a Carbon Management System

Using Carbon Accounting Tools, such as SAP or Sphera, manufacturers should also track emissions, ensuring that reporting aligns with recognised standards such as the GHG Protocol.

The GHG Protocol recommends the GHG Protocol Corporate Standard as an effective and recognised approach to providing “a true and fair account of emissions for internal management and external reporting.”

Practical Carbon Reduction Actions

 Manufacturers should take the following steps to reduce carbon emissions onsite and in the wider supply chain.

  1. Replace lighting with the latest LEDs, such as smart LEDs with built-in energy monitoring.
  2. Install variable speed drives on motors and pumps to match electricity use with production needs.
  3. Add renewables into your energy mix with a green tariff or long-term power purchase agreement.
  4. Schedule production for off-peak energy periods to reduce grid strain and lower indirect emissions.
  5. Replace gas-fired systems with electric alternatives like induction heating or electric boilers for lower carbon emissions.

 

 

Enhanced Energy and Carbon Management

Enhancing your production process can also help reduce emissions - incorporating leaner workflows, improved machine maintenance, and smarter scheduling of energy can all contribute to a reduced carbon footprint.

Waste is another primary area to target. Some companies have turned waste streams into raw material for other processes. This can also help accelerate your decarbonisation efforts.

Supply chains are another aspect of production that is important to address. Manufacturers need to work with vendors to cut packaging, improve logistics, and shift to lower-carbon materials.

Co-designing products, such as automotive parts and consumer components, can also help decrease your carbon footprint. Technology helps all of this move faster.

Smart meters show where your energy is being transferred in real time. Carbon tracking platforms help simplify the process of emissions monitoring, ensuring that tracking is carried out efficiently.

Upgrading equipment - from compressors to control systems - also helps onsite equipment run more effectively and contributes to lowering energy usage.

How CFP Energy Delivers Carbon Management Solutions

At CFP Energy, our analysts and carbon specialists work side-by-side with your team to find changes that make sense financially and operationally. Whether it’s sourcing renewables or building a roadmap to deliver a carbon management solution, we're with you every step of the way.

Our commitment to carbon management extends to our market access. With a wealth of experience navigating the UK ETS and the forthcoming UK ETS2, we can help you navigate the changes that will soon apply to your sector, including the end of free allocations. Contact our team to see how we can help today.