Levi Strauss & Co. (Levi’s), a global leader in denim and lifestyle apparel, has released its first climate transition plan, aiming to achieve net zero emissions by 2050. It lays a roadmap to reach near-term greenhouse gas (GHG) reduction targets by 2030 and achieve longer-term climate goals. 

Levi’s plan follows similar commitments made by brands like the H&M Group and Reformation, reflecting a growing trend in the fashion industry towards sustainable practices.

How Levi’s Plans to Achieve Net Zero

Levi’s 2050 net zero emissions goal involves both direct and indirect emissions throughout its entire value chain. This includes emissions from manufacturing processes, transportation, product usage, and end-of-life disposal. 

In 2023, the fashion firm’s total GHG emissions were over 3.7 million tons of CO2e. Of this, only 12 thousand tons of CO2e were Scope 1 and 2 emissions. 

Source: Levi’s Climate Transition Plan report

The company’s strategy is guided by the Science-Based Targets initiative (SBTi), ensuring that its climate action aligns with the Paris Agreement’s objective of limiting global warming to 1.5°C. It focuses on three areas to guide its climate actions.

Internal Operations and Scope 1 & 2 Emissions: 

To reach its long-term goal, Levi Strauss has set specific interim targets for 2025. 

The apparel giant is prioritizing a reduction in direct (scope 1) and energy-related (scope 2) emissions. This involves investing in energy-efficient technologies, and renewable energy, and implementing a global energy management system to guide strategic decisions. 

By 2025, the company aims for a 90% reduction in these emissions, compared to its 2016 baseline as shown below. For Scope 3 emissions, which include the supply chain’s carbon footprint and product life cycle, the company targets a 40% reduction per product by 2025.

Source: Levi’s Climate Transition Plan report

Engaging the Supply Chain to Tackle Scope 3 Emissions: 

The second part of the strategy focuses on the broader value chain, tackling the significant impact of scope 3 emissions from global suppliers. Levi Strauss is working towards Science-Based Targets (SBT) by promoting sustainable materials, offering supplier financing for energy reduction efforts, and supporting circularity initiatives. 

A key goal is to reduce scope 3 emissions related to apparel production by 42% by 2030, using a 2022 baseline. This target addresses 72% of the company’s total Scope 3 emissions, emphasizing a substantial focus on reducing indirect emissions across the value chain. These efforts include encouraging sustainable farming practices and enhancing transparency in supply chains.

Source: Levi’s Climate Transition Plan report

Focusing on Scope 3 or value chain emissions is critical as they account for over 99% of the company’s total carbon footprint. The company’s goal is for 100% of its key suppliers to adopt renewable electricity by 2025.

Governance and Advocacy: 

Levi’s aims to embed climate risks and opportunities into its overall business strategy to ensure strong governance throughout the transition. This includes regular updates on their progress through sustainability reports, ensuring accountability and alignment with international frameworks like the TCFD (Task Force on Climate-Related Financial Disclosures) and CDP (Carbon Disclosure Project).

According to Jeffrey Hogue, Chief Sustainability Officer at Levi’s, the climate transition plan is part of the company’s longstanding commitment to addressing climate change. He also noted that:

“These steps will not only move us toward our Net Zero climate ambition by 2050 but also strengthen our own business’s resilience to the effects of climate change.”

Renewables at the Core: Levi’s Push for 100% Green Energy by 2025

To reduce its Scope 1 and 2 emissions, Levi Strauss has committed to using renewable energy in its own operations. The company has already transitioned many of its facilities to renewable electricity and is actively investing in solar and wind power for its global offices and retail outlets. 

Notably, it seeks to achieve 100% renewable electricity in all company-operated facilities by 2025. It also aims to reduce freshwater usage in water-stressed areas by 50% from a 2018 baseline by 2025. These targets align with global climate science and further the company’s broader sustainability goals.

Levi Strauss also recognizes the role of sustainable product design in achieving its net zero ambitions. The company focuses on extending the life of its products through durable design, using organic cotton, and reducing the use of water-intensive processes. Levi’s® WellThread collection, for example, incorporates circular design principles, making garments that are easier to recycle.

Leading the Industry Shift Towards Sustainability

Achieving net zero requires collective action, and Levi Strauss emphasizes engaging with stakeholders across its value chain. This includes not only suppliers but also consumers, employees, and investors. The denim company encourages consumers to adopt more sustainable behaviors, such as washing jeans less frequently and opting for cold water washes.

Levi Strauss has also joined industry coalitions like the Fashion Industry Charter for Climate Action, which unites fashion brands in taking bold actions to reduce carbon emissions. Through these partnerships, Levi’s aims to drive industry-wide changes and influence policies that support a transition to a low-carbon economy.

Since 2000, global fiber production has nearly doubled, rising from 58 million tonnes to 116 million tonnes in 2022. It is projected to reach 147 million tonnes by 2030 if current non-sustainable practices continue. 

This industry growth comes with significant environmental costs. The fashion sector is the 2nd-largest water consumer and contributes 2%-8% of global carbon emissions. Without changing current practices, the industry’s share of the carbon budget will increase to 26% by 2050. 

Additionally, 85% of textiles are dumped annually, and less than 1% is recycled. 

The fashion company’s climate transition plan offers a promising path forward. By setting science-backed targets and engaging both internal and external partners, Levi Strauss. is taking concrete steps to reduce its environmental impact while inspiring others to help the fashion industry become more sustainable.

SEE MORE: Lululemon and Samsara Eco Reveal World’s First Recycled Textile Using Enzymes

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The International Energy Agency (IEA) recently released its World Energy Outlook 2024, highlighting big shifts in global energy trends. Solar power is at the forefront of this transformation, with projections showing that global solar electricity generation could grow fourfold by 2030. This growth is set to accelerate the decline of coal and reshape the global energy mix. 

Solar’s Big Moment: The Future of Power Generation

According to the report, global energy markets stabilized in 2023, with natural gas prices dropping after a spike in 2022 and energy demand growing by 2.1%, aligning with the pre-2020 average. However, under the Stated Policies Scenario (STEPS), demand growth is expected to slow to 0.7% annually until 2030. Most of this growth will be in emerging markets and developing economies. 

Efficiency improvements and increased electrification are key factors, with the Announced Pledges Scenario (APS) showing a slight decline in energy demand, and the Net Zero Emissions (NZE) Scenario indicating a more significant drop.

Source: IEA Energy Outlook 2024 Report

Electricity demand is set to grow across all scenarios, driven by economic progress, electrification of transport (such as electric vehicles), and the rising need for data centers. 

By 2033, solar is expected to surpass nuclear, wind, hydro, and natural gas as a major electricity source. Eventually, it could even overtake coal to become the largest source of electricity worldwide. This marks the beginning of what the IEA calls the “age of electricity,” where clean energy growth and efficiency gains gradually reduce our reliance on fossil fuels.

By 2035, electricity’s share of global consumption will reach 26% in STEPS, 29% in APS, and 36% in the NZE Scenario. In particular, China’s electricity demand is expected to surpass the combined demand of advanced economies by 2030.

Source: IEA Energy Outlook 2024 Report

How Renewables Are Reshaping Energy Markets

The rise of solar power is part of a larger shift toward cleaner energy sources. The IEA predicts that as more renewable energy like solar and wind comes online, global carbon dioxide (CO2) emissions from energy will reach their peak around 2025. This could be a major step forward in reducing the impact of climate change. 

RELATED: Will Record-Breaking Solar Imports Reshape U.S. Industry Amid Tariff Uncertainty?

However, the IEA warns that these changes alone aren’t enough to meet the goals of the Paris Agreement, which aims to limit global warming to well below 2°C, preferably to 1.5°C, above pre-industrial levels. Even with the growth of renewables, CO2 emissions are expected to fall only 4% below 2023 levels by 2030. This would still result in a global temperature increase of about 2.4°C—higher than the desired target.

To reach the 1.5°C target, the IEA outlines a path that it calls “increasingly narrow, but achievable.” This path requires three things:

a rapid shift to clean energy technologies,
faster adoption of electric systems, and
a big reduction in emissions—around 33%—by 2030.

Achieving these goals will demand new policies and large investments in renewable energy, especially in regions that still rely heavily on fossil fuels. 

The IEA suggests that along with expanding clean energy, improving energy efficiency is crucial to keeping global energy demand in check, even as economies and populations grow.

Electricity’s Rise For Cleaner Power 

The World Energy Outlook 2024 also explores various possibilities, including the growth of electric vehicles, energy demand from data centers, and the rising need for air conditioning due to more frequent heat waves. 

No matter the scenario, the IEA expects that demand for coal, oil, and natural gas will peak soon. This shift represents a turning point as the world moves from fossil fuels to renewable energy. 

Coal, which has been a major energy source, could start its decline by 2025, particularly as renewables like solar and wind gain ground in Asia, where coal has traditionally been dominant. Moving away from coal is crucial for reducing the carbon footprint of electricity production and for improving air quality in growing urban areas.

For oil and gas, demand is expected to peak around 2030 before gradually decreasing. The transition away from these fuels will be slower because of their key roles in transportation, petrochemicals, and manufacturing. 

The adoption of clean technologies, such as renewables and EVs, is driving a peak in demand for oil, natural gas, and coal by 2030. Yet, additional investment in clean energy is necessary to make more carbon emissions reductions.

However, as EVs become more popular and cleaner alternatives become available, the reliance on oil is expected to drop. The demand for natural gas is also projected to decline as options like green hydrogen and advanced battery storage become more viable. These alternatives are vital for hitting climate goals and ensuring energy security.

Achieving Net-Zero 2050 with Renewables

The report emphasizes that the growth of renewable energy is central to reshaping the world’s energy system. By 2030, renewable energy capacity could grow to nearly 3x of its current size. 

While this progress is significant, it’s still not enough to reach the ambitious goals to triple renewable capacity. To meet these goals, the IEA stresses the need for more policy support, innovation, and investment in renewables. 

Remarkably, solar and wind could provide nearly 60% of global electricity by 2050. However, fossil fuels still met 80% of global energy needs in 2023, though their demand could peak by 2030. 

One major factor driving the rise of clean energy is the falling cost of solar and wind power, which has made them competitive with traditional fossil fuels. The IEA estimates that solar capacity could exceed 16,000 gigawatts (GW) by 2050, a huge jump from current levels. 

This growth is supported by advancements in battery technology, which help balance the fluctuations of renewable energy sources like solar. In its latest forecasts, the IEA has increased its estimates for battery storage, showing more optimism about the role of these technologies in making renewable energy systems work smoothly.

Despite these promising trends, the IEA stresses that more action is needed to reach climate goals. To stay on track for net-zero emissions by 2050, the world needs more investments in renewable energy and policies that support the shift away from fossil fuels. This could include carbon pricing, subsidies for renewable projects, and regulations that push industries to be more energy efficient. 

According to the IEA, the world has the tools to move to a cleaner energy future, but it will take a lot of effort to make the transition happen quickly enough.

READ MORE: Are U.S. Utilities Falling Short of Biden’s 2035 Clean Energy Goals?

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Carbon capture and storage (CCS) is gaining momentum as an important solution for reducing global carbon emissions. With significant projects like Gevo’s $1.46 billion Net-Zero 1 plant in South Dakota and a surge in CCS developments worldwide, the industry is expanding rapidly. 

Gevo’s Groundbreaking SAF Plant

Gevo Inc., a Colorado-based alternative fuels company, has been offered a $1.46 billion loan by the U.S. Department of Energy (DOE) to build a “clean” fuels plant in eastern South Dakota that captures carbon emissions. 

The facility, named Net-Zero 1, aims to produce sustainable aviation fuel (SAF), renewable diesel, and renewable naphtha using corn feedstock in Lake Preston. The plant aims to produce SAF while incorporating carbon-negative production processes to offset tailpipe emissions. 

SAF refers to a broad category of biofuels and synthetic fuels intended to replace conventional jet fuel. These fuels still produce tailpipe emissions, but they are counterbalanced by a carbon-negative production process.

Gevo has taken a significant step towards expanding its carbon capture and storage capabilities by acquiring Red Trail Energy LLC’s ethanol plant and associated carbon capture and storage (CCS) assets in North Dakota last month. Valued at $210 million, this acquisition supports Gevo’s ambitious plans to establish Net Zero-1. 

The Richardton, North Dakota facility, brings critical assets to Gevo’s strategy, especially its permitted CO2 storage infrastructure. This site is capable of storing up to 1 million metric tons of CO2 annually, though Red Trail has only used less than 20% of this capacity so far. 

Net-Zero 1 would be the first SAF facility of its kind in the U.S., as noted by the DOE. The conditional loan was one of two announced on the same day; the other, worth $1.44 billion, was offered to Montana Renewables for expanding a renewable fuels plant in Great Falls.

Gevo expects to close the deal in 2025, with third-party project equity making up most of the project’s funding. 

The company has partnered with Summit Carbon Solutions, which is developing a pipeline to transport the captured CO2 to a storage site in North Dakota, to manage its carbon emissions. 

With capitalized interest during construction, the loan guarantee could provide Gevo with a borrowing capacity of $1.63 billion. The said financing is subject to specific conditions and an environmental review by the DOE.

Global Growth and Trends in Carbon Capture Projects

Globally, the CCS landscape is seeing a significant expansion, according to the Global CCS Institute report. The think tank’s 2024 annual status update highlights a notable increase in projects worldwide, with 291 CCS projects in advanced development or under construction as of mid-2024. 

Chart from Global CCS Institute report

This figure represents a substantial growth from 147 projects in mid-2023. It shows the rising momentum of CCS technology as governments across the globe implement policies to combat climate change. There are now 50 operational CCS projects worldwide, but the majority remain in the design and permitting stages.

The total CO2 capture capacity of these projects has also increased, growing from 177 million metric tons annually in 2023 to 231 million metric tons by mid-2024. However, this growth comes despite setbacks, including several high-profile cancellations. 

For instance, Navigator CO2 Ventures recently scrapped plans for a 1,300-mile CO2 pipeline in the U.S. Midwest. The reason for this is the challenges faced in securing state permits. 

Still, government incentives, such as federal tax credits for CCS, have been instrumental in driving new projects in the US. Currently, 13 CCS projects are under construction, primarily associated with hydrogen, ammonia, and ethanol production facilities, which are often easier to retrofit with CCS technology. 

Moreover, a growing number of direct air capture (DAC) projects are in development, catering to the increasing demand for carbon credits. These credits are seen as more easily verifiable than those from traditional carbon capture methods. 

Government subsidies and supportive regulations have played a crucial role in boosting CCS deployment. 

RELATED: PETRONAS, ADNOC, and Storegga Forge Deal to Explore CCS in Malaysia

The Global CCS Institute’s report emphasizes the need for continued public funding. Without a price on CO2 or mandatory capture regulations, many CCS projects may struggle to remain financially viable. The case of Alcoa Corporation is an example of this.

A Push for CO2 Compensation 

Alcoa Corporation is pursuing $80 million in CO2 compensation from the Spanish government, seeking reimbursement for carbon-related costs incurred between 2018 and 2021 at its San Ciprian aluminum and alumina production complex. 

The compensation is critical for Alcoa as it faces increasing competitive pressure in the European market. Its neighboring countries like France offer significant carbon credits and subsidies to support smelters. These subsidies make French operations more viable compared to those in Spain. 

CEO William Oplinger echoed the need for equal support to ensure the competitiveness of Alcoa’s operations in Spain.

The Pittsburgh-based company’s challenges in Spain extend beyond the lack of CO2 compensation. It is also working on a strategic cooperation agreement with Ignis Equity Holdings to secure the future of the San Ciprian complex. Under this agreement, Ignis will invest €25 million for a 25% stake in the facility, while Alcoa commits €75 million to ongoing operations. 

Additionally, Alcoa seeks access to around $85 million in restricted cash controlled by unions at the site to help cover operating expenses.

These ongoing developments in carbon capture across companies and countries underscore both the opportunities and challenges facing the sector. As more projects move from planning to execution, the potential of CCS to play a critical role in achieving climate targets becomes increasingly clear. 

READ MORE: The “Northern Lights” Shines: Shell, Equinor, and TotalEnergies JV Powers the Norway CCS Project

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As governments across the world push for cleaner energy, the competition between India and China for cleantech dominance intensifies. China’s early investment in clean energy technology and manufacturing has given it a significant lead. However, India is rapidly building its capacity, aiming to grab the spotlight in the global market.

This analysis explores the current landscape, identifying strengths, weaknesses, and what lies ahead for both nations in the cleantech race.

China’s Technological Edge and Cost Advantage

China remains a global leader in clean energy manufacturing. The country’s investments in solar PV, battery technology, and wind energy have solidified its dominance. China’s advantage stems from its ability to manufacture at a lower cost while maintaining high technological sophistication.

For instance, in solar PV manufacturing, China controls key parts of the supply chain, including wafers and polysilicon, both essential for solar panel production.

S&P Global highlighted that while countries like India are taking big steps, China’s manufacturing output and efficiency continue to overshadow most nations. Its cleantech products are not only produced at a lower cost but have also overcome previous concerns about quality. This quality and competitive pricing have allowed Chinese manufacturers to grow their market share, even in sectors like wind energy, where they face strong competition.

According to a Wood Mackenzie report, China now commands the manufacturing landscape across major clean technologies.

It holds 60% of the wind foundation market and an impressive 97% share of solar PV wafer production.
China’s dominance extends beyond manufacturing, with booming electric vehicle (EV) sales further highlighting its leadership in the sector.

India’s Growing Investment in Cleantech Market

India is starting to invest more in its global cleantech market. This is getting a push with its low-cost manufacturing base and government support.

For example, the Production-Linked Incentive (PLI) scheme, has helped reduce solar PV manufacturing costs by up to 24%, making India competitive in the global market. This program aims to establish domestic manufacturing for critical clean energy components like solar modules and batteries.

Additionally, India’s energy efficiency program has been in place for years, and the country recently introduced a hydrogen policy focused on producing low-carbon hydrogen through domestic electrolyzer manufacturing.

India’s clean energy sector has seen a massive uptick in investment. In 2023, the country invested $68 billion in clean energy projects, a 40% increase compared to the 2016-2020 average. Almost 50% of this spending was directed toward low-emissions power generation, particularly solar PV.

Conversely, India’s fossil fuel investments also grew by 6% to $33 billion in 2023, as the country continued to grapple with rising fuel demand.

READ MORE: How India’s Budget 2024 Sets a Global Standard for its Critical Minerals

Image: Past and future energy investment in India in the Announced Pledges Scenario and the Net Zero Emissions by 2050 Scenario, 2016-2030

Source: IEA

After evaluating the current scenario, we can say that India is on the brink of a clean energy revolution. Prime Minister Narendra Modi’s commitment to add 500 gigawatts (GW) of clean energy by 2030 will certainly help India to be a global leader in renewable energy. But the question remains how is the country planning to meet this ambitious target?

2024 Looks Rosy for India…

After years of slow progress, 2024 has marked a turning point for India’s renewable energy sector. Solar panels and wind turbines are being installed at a commendable pace. Media reports reveal that 18.8 GW of new renewable energy capacity was added till August this year. This way more than the total capacity of last year.

According to the International Energy Agency (IEA), India is on track to add 34 GW by the end of the year, with projections showing growth will nearly double to 62 GW annually by 2030.

On October 14, India’s power ministry announced a plan to upgrade its power grid to support renewable energy expansion through 2032. The project involves a $109 billion investment and aims to bolster Prime Minister Narendra Modi’s vision for clean India.

India is also benefiting from Western countries’ efforts to diversify supply chains and reduce reliance on China. The US and the EU have enacted tariffs and trade restrictions on Chinese products, giving Indian manufacturers an opening to supply premium-priced markets, particularly in solar PV. By 2028, S&P Global predicts that India could become the second-largest solar PV manufacturing region after China.

Industry experts predict that this rapid expansion might outpace China’s growth rate in the second half of the decade, positioning India as the world’s fastest-growing clean energy market.

But is it as rosy as it seems to be? The answer is probably no. We unlock the challenges below.

READ MORE: Tata’s $11 Billion Leap: India’s First Semiconductor Fab in Partnership with Taiwan’s PSMC 

A Lingering Challenge for India’s Clean Tech Future

However, India still faces several challenges. Despite the progress and one of the fastest growing economies, Indian manufacturers remain dependent on China for inputs like wafers and polysilicon. Thus, India is not yet 100% self-sufficient in these areas.

Furthermore, as the country is growing so does its energy demand. By 2050, energy demand in India is expected to outpace every other region in the world. This growing demand could put enormous pressure on its energy system, which still heavily relies on imported fossil fuels like crude oil and natural gas.

And with this rising demand comes the risk of increased carbon emissions, particularly if fossil fuel consumption continues to grow for transportation, power generation, and industrial use.

S&P Global analyzed that India is also moving slower than China in wind energy and battery manufacturing, While the country is scaling up battery production, it’s unclear whether it can meet its goal of self-sufficiency by 2030. In wind energy, India’s infrastructure is better suited for onshore projects, and it may struggle to compete with China in the growing offshore wind market.

Risks of Trade Barriers and Global Oversupply

One of the major risks facing India’s cleantech expansion is potential trade barriers. As the US and EU focus on domestic reindustrialization, Indian cleantech exports could become targets for new tariffs, especially in sectors like solar PV and batteries. There’s a delicate balance between encouraging global supply chain diversification and protecting domestic industries.

Additionally, in some cleantech sectors like electrolyzers, global oversupply could make it difficult for Indian manufacturers to remain competitive. Although India is expected to produce more electrolyzers than it needs by 2030, stiff competition from established players could drive prices down, potentially limiting India’s growth in this space.

Can India Compete Without China?

China dominates global supply chains, making it unrealistic for India to fully take over its manufacturing space, according to the Economic Survey 2023-24. The survey, presented by Finance Minister Nirmala Sitharaman, emphasized that India may need Chinese investment and technology to boost its manufacturing sector. Instead of distancing from China, partnering with its expertise could be key to driving India’s cleantech growth.

The Survey pointed out that,

“It may not be the most prudent approach to think that India can take up the slack from China vacating certain spaces in manufacturing. Indeed, recent data cast doubt on whether China is even vacating light manufacturing.”

This is self-explanatory.

China’s dominance in the cleantech sector is undeniable, but India is making strides to close the gap. With strategic government support and lower production costs, India has the potential to become a key supplier of cleantech products to the US and Europe.

RELATED: U.S. Raises Tariffs on $8B China Imports: EVs, Batteries, and Solar Cells Included

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