The Ultimate Frontier: Decarbonization of the Value Chain

As global momentum for decarbonization accelerates, achieving net-zero emissions by 2050 has become a critical milestone for industries worldwide. To meet the Paris Agreement’s goal of limiting global warming to 1.5°C, global emissions must be reduced by 45% by 2030, with a full transition to net zero by mid-century. This challenge requires the decarbonization of entire value chains, particularly in the energy sector, which accounts for nearly 75% of global emissions.

"The energy sector lies at the heart of the climate challenge," says Andrés Friedman, Co-founder and CEO, Solfium. He explains that currently, 82% of the world’s energy consumption is still met by fossil fuels. However, 2023 marked a significant year for renewable energy, with global solar installations surpassing 400 GW—an astounding increase from just two decades ago. The momentum for renewable energy and distributed generation is growing, offering economically viable and scalable solutions to reduce emissions. Distributed generation, in particular, has gained traction due to its lower regulatory burden and minimal land use requirements. "We cannot change our emissions footprint without changing our energy consumption," says Friedman.

Moreover, “distributed generation (DG) offers a promising pathway to decarbonize the value chains of various industries in Mexico,” says Friedman. DG involves the production of electricity from numerous small energy sources, rather than relying on a centralized system.

Decarbonization efforts must extend beyond direct energy consumption to address emissions across entire value chains. A company’s carbon footprint is not limited to its factories or warehouses (Scope 1 and 2 emissions); it also encompasses emissions generated by suppliers, distributors, customers, and even employee households—classified as Scope 3 emissions. These Scope 3 emissions often account for up to 80% of a company’s total carbon output, highlighting the importance of holistic solutions that address every stage of the value chain.

In the United States, the Securities and Exchange Commission (SEC) has proposed regulations requiring public companies to report their emissions, while California is leading the way in mandating corporations to disclose value chain emissions. In Mexico, carbon taxes imposed by subnational governments are incentivizing companies to reduce their environmental impact. Friedman explains that decarbonizing value chains is crucial to remain competitive, as it will soon become essential for maintaining international commercial relationships.

The intersection of sustainability and nearshoring—now termed “greenshoring”—is creating new opportunities for economic growth. Mexico has seen a rise in job creation, with 2.2 million new jobs added from 2021 to 2023, and the shift toward sustainable energy solutions is projected to drive annual economic growth of 3.7%.

Recognized by the Solar Impulse Foundation and part of the Green Tech Alliance, Solfium’s mission is to make solar energy adoption easy and accessible for both homes and businesses. The company has gained global recognition, earning a spot on the Google Cloud 100 Startups of Latin America list and being named one of Forbes' “30 Business Promises.”

Solfium’s platform streamlines the process of solar energy adoption for residential and commercial clients, offering an end-to-end solution that deploys, integrates, and monitors projects across the value chain.