Net Zero – The Most Valued Zero On Earth

Oct 19, 2021

Simply put, Net Zero (or ‘carbon neutrality’ & ‘climate neutrality’) means creating a balance between the amount of greenhouse gases (GHGs) produced & the amount of GHGs removed from the atmosphere. 

This inspired  ‘Net Zero Energy’ defined by – energy conservation, energy efficiency, and on-site generation through renewable energy to manage 100% of a targeted building or community’s energy usage, so the amount of energy provided by on-site energy sources is equal to the amount of energy used. 

These concepts are becoming an operational mandate in the areas of transportation, green buildings, infrastructure, energy (electricity & heat), waste treatment, smart cities, agriculture, and industrial processes, among others.

But why do we need ‘Net Zero Energy’? 

We are already seeing the catastrophic effects of global warming through unpredictable climate change, forest fires, rising sea levels, and more. Besides making the planet uninhabitable, increased poverty & hunger have also raised public pressure to act now to lower GHGs.  

The planet has heated up by about 1.1°C. The Paris Agreement & Intergovernmental Panel on Climate Change (IPCC) set the global goal of going ‘Net Zero’ to limit the global average temperature rise between 1.5°C & 2°C by 2050. Nearly 200 countries have already vowed to meet this target. For this, the UN Climate Science panel says man-made GHGs need a 45% decrease by 2030.



The major GHGs are CO2, CH4, N2O, and F-Gas, emitted by the sectors  Energy, Agriculture, Industrial Processes, Waste, and Land-Use Change & Forestry. The most widely used & internationally recognized greenhouse gas accounting standard – Greenhouse Gas Protocol (GHGP), divides emissions into three scopes. 

  • Scope 1: Direct emissions related to on-site fuel combustion or fleet vehicles. 
  • Scope 2: Indirect emissions related to emissions generated by purchased energy, like heat & electricity. 
  • Scope 3: Other indirect emissions related to emissions from both upstream & downstream business activities. 

Here’s why businesses will need to follow GHGP standards: 


Social movements & governments are implementing policies & value-added systems based on GHGP and Environmental, Social & Governance (ESG) criteria. Those who are reforming business based on ESG are supported while those with poor ESG ratings are considered ‘unsustainable assets’, excluded from current & future investment portfolios and suffer in stock value.

Sustainable Funds:

Many sustainable private financing schemes are being provided by organizations like the World Bank, International Finance Corporation (IFC), Asian Development Bank, and International Monetary Fund (IMF), among others to help fund countries & organizations to achieve Net-Zero. 

Revenue & Profit:

Making a complete Net Zero transition throughout a company’s supply chain is complex with high up-front transition costs and intense transitionary challenges, irrespective of the industry. The realisation of any operational profit or benefits will occur only in the long run. To ensure long-term tenability, it is essential to be sustainable at every step of the value chain 


The consequences of climate change naturally vary depending on the region of the world, its social system & respective local conditions. Governments are actively implementing relevant schemes & strict regulations to lower their carbon footprint, such as pollution bans, fossil fuel subsidies, tax reforms, new product & fuel standards, and mandatory ESG & climate risk disclosure. Improved public education on Net Zero & providing transition grace periods for those affected can increase support for climate policies. 

Before that, emissions must be controlled at a grassroot-level.  

A significant share of GHG emissions come from buildings & associated activities like indirect CO2 emissions via electricity & heat use – under Scope 2 of the GHG Protocol – which holds key mitigating opportunities. 

Racanaa Energy is a ‘Net Zero Energy’ management company that provides businesses with OPEX-based ‘Energy Intelligence & Automation Services’.  

We help businesses transition towards their ‘Net Zero’ goals by introducing energy-saving strategies, renewable energy with backup reserves and Net Zero facility designs for a full-circle sustainable business ecosystem with end-to-end partnerships 

Our tech is designed to help customers lower carbon emissions, conserve ongoing energy consumption, upgrade energy efficiency, and supply switches to low-carbon electricity, using on-site installations or replacing existing energy products (via contracts & electricity suppliers) across their business network. 

Our customers include high-street retail establishments, banks, petrol pumps, QSR restaurants, cloud kitchens, residential condominiums & apartments. 

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