· 12 min read
I. The foundational flaw: Why ‘decarbonisation’ misrepresents the climate challenge
A. The biological imperative of carbon: Reframing the climate challenge
There is a serious philosophical problem with the term "decarbonisation" as it is used to refer to climate mitigation. Since carbon is the building block of all terrestrial life, the term suggests the removal of carbon, which is inaccurate from a chemical and biological standpoint. The historical and ongoing reliance on burning carbon that has been stored in the geological record for millions of years — that is, coal, oil, and gas — to release natural energy is the systemic issue facing the world economy, not the existence of carbon per se. Excess ancient carbon is introduced into the active atmospheric and biological cycle by this activity, which has its roots in the Industrial Revolution.
Economic activity must be "regenerative by design" in order for an economy to be really sustainable. This requires the adoption of systems thinking. The goal is to replace the ineffective "take-make-waste" linear model with a dramatic decoupling of economic growth from the consumption of finite resources, not to eliminate carbon. Therefore, the real objective is to establish a dynamic system that manages, uses, and continuously circulates carbon, particularly biogenic carbon that comes from biological cycles.
B. The quantitative deficiency of the energy-only focus: Addressing the 45% gap
Narrowly concentrating on the energy sector — the conventional definition of "decarbonisation" (moving towards renewable energy sources and increasing energy efficiency) — is essential, but it is essentially insufficient to achieve global net-zero ambitions. Approximately 55% of global greenhouse gas (GHG) emissions may be addressed by the energy transition alone, according to research.
Embodied carbon is the term used to describe the remaining 45% of emissions that are linked to the production, consumption, and land use of materials. In addition to the main demand sectors that use these materials, such as buildings and automobiles, this also includes emissions from energy-intensive businesses such the primary manufacturing of steel, cement, chemicals, and aluminium. By altering the production and use of goods, materials, and food, circular economy solutions are specifically intended to close this 45% disparity. By prolonging their lives and streamlining material flows, they save the embodied energy in products and materials.
Ignoring this 45% has serious economic repercussions. Businesses and politicians miss the largest structural avenue to net-zero when they only consider energy sources (the 55% answer). Increased risks of resource scarcity, needless pollution liability, and lost business opportunities related to material recycling and reuse are all direct results of this negligence. For example, the New Circular Economy Action Plan (CEAP 2.0) and other pledges show that the European Union has quantified and acknowledged the crucial role that material recirculation, substitution, and efficiency play in industry decarbonisation.
The cost of reaching "net-zero decarbonisation" becomes unreasonably high if circular economy concepts are not integrated to optimise consumption and lower material demand.
"Ambitious climate policies give businesses the clarity and confidence they need to accelerate their investments and transition to the zero-carbon economy," said Robert Agnič, CEO of Plastika Skaza d.o.o.
The following is a summary of the structural differences between the two paradigms:
Table I.1: The Two Paradigms: Decarbonisation vs. Carbon Circular Economy (CCE)
Criterion |
Decarbonisation (Linear energy focus) |
Carbon Circular Economy (CCE) |
Primary goal |
Minimize GHG emissions from energy production (shifting fuel source). |
Maximize resource value; eliminate waste and pollution; regenerate nature. |
View of carbon |
A pollutant to be eliminated or sequestered (if geological). |
An essential resource to be managed, utilized, and recirculated. |
Scope of impact |
Addresses approximately 55% of global GHG emissions (Power, Transport). |
Addresses 100% of emissions (Energy, Materials, Products, Food, Land Use). |
Economic principle |
Decouples energy generation from fossil fuels. |
Decouples economic growth from the consumption of finite resources. |
II. The Carbon Circular Economy (CCE) defined: A regenerative strategic framework
A. CCE Defined: Carbon as a resource and carbon dioxide (CO2) as a by-product
One all-encompassing strategic paradigm for managing carbon emissions is the Carbon Circular Economy (CCE). The CCE conceptualises "carbon" as a vital resource rather than a contaminant, and CO2 is strategically managed as a by-product of the carbon utilisation process. By abiding by three fundamental principles — removing waste and pollution, reusing materials and products, and renewing nature — this regenerative design concept seeks to construct and restore total system health.
Using a 3R or 4R framework that goes beyond conventional waste management, the CCE operationally incorporates explicit carbon management into resource strategies:
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Reduce: Eliminating waste and pollution completely and putting efficiency measures into place.
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Reuse: Catching CO2 emissions and putting them to practical use, usually without changing the carbon molecules chemically.
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Recycle: Using energy-intensive or high-temperature chemical processes to transform captured CO2 into new, valuable products or alternative energy sources.
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Remove: Using 'point-of-source' devices to absorb carbon emissions before they reach the atmosphere.
In order to ensure a shift towards sustainable, climate-neutral growth, carbon management solutions — such as Carbon Capture, Utilisation, and Storage (CCUS) — are crucial supplements to electrification and renewable energy sources.
Visualizing the CCE: The regenerative carbon flow
By considering carbon as a resource and CO2 as a value-added by-product, the Carbon Circular Economy shifts the emphasis from disposal to design. The systemic approach is demonstrated in the following framework, which integrates sophisticated technology (CCU/PtX) with material flow management across geological and biological cycles.
Table II.1: The Carbon Circular Economy (CCE) System Framework
Element |
Action / Principle |
Mechanism / Focus |
Key Outcome |
I. Foundational principles |
Regenerative by design |
Decouple economic growth from finite resource consumption. |
System health; Resource resilience |
Eliminate waste & pollution |
Design out negative environmental impacts and liabilities (e.g., methane leaks). |
Cleaner systems; Cost avoidance |
|
Circulate products & materials |
Retain embodied value and energy of materials (e.g., steel, plastics). |
Value retention; Hard-to-abate decarbonization |
|
II. The 4R action cycle (Technical & Biogenic) |
1. Reduce |
Material efficiency; energy efficiency; smarter product use. |
Lower primary demand; Cost savings |
2. Reuse |
Utilizing captured CO2 directly without chemical change (e.g., Enhanced Oil Recovery). |
Direct value creation |
|
3. Recycle |
Converting captured CO2 into valuable commodities (e.g., e-fuels, chemicals, materials via PtX). |
Continuous revenue streams |
|
4. Remove |
Capturing carbon at the point of source (e.g., CCUS on industrial facilities). |
Mitigating point-source emissions |
|
III. The carbon loops |
Biogenic loop (Natural) |
Regenerating nature; storing atmospheric CO2 in soils, vegetation, and biomass (e.g., regenerative agriculture). |
Natural sequestration; Food system decarbonization |
Geologic/Technical loop (Engineered) |
Capturing and utilizing geologic CO2 from industrial sources (e.g., CCUS/PtX) or storing it underground. |
Energy Independence: Synthetic Fuel Production |
B. The dual pathways of carbon circulation: Biogenic vs. geologic
The CCE encompasses both natural and engineered systems for managing carbon flows.
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Biogenic carbon circulation (Natural systems)
This pathway focuses on how biological processes naturally and quickly remove CO2 from the atmosphere. Plants and microorganisms store carbon in soils, vegetation, woody products, and aquatic habitats through a process known as biologic sequestration. Furthermore, it is predicted that by 2050, emissions from the food system would have been cut in half as a result of the transition to regenerative production in agricultural techniques and the eradication of food waste.
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Geologic/Technical carbon circulation (Engineered systems)
This pathway uses technology to control human-caused CO2 emissions from power and industrial sources. Large point sources of CO2 are captured by CCUS, such as industrial sites that use biomass or fossil fuels.
Carbon Capture and Utilisation (CCU) is emphasised as a fundamental component of the CCE. By turning a previously defined liability (CO2 emissions) into a valuable asset, CCU radically changes the economic equation. The CO2 that has been captured is recycled into ongoing sources of income, including chemicals, industrial feedstocks, or synthetic fuels. This encourages private investment in CCE infrastructure, particularly in hard-to-abate industries like cement manufacturing where significant process decarbonisation would otherwise be unaffordable.
III. Catalytic technologies: Advanced synthetic carbon pathways and nanomaterials
A. Advanced conversion technologies for future energy security
The effective use of circulating carbon and renewable energy is made possible by sophisticated conversion technologies, which are crucial to the CCE's realisation.
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Power-to-X (PtX) and green hydrogen derivatives
PtX technologies are essential because they transform power from renewable sources into industrial feedstocks or flexible energy carriers. In order to ensure overall climate neutrality, hydrogen, a crucial component, is produced using renewable power (Green Hydrogen). Derivatives of hydrogen, including
Since there is "no near-term alternative to liquid hydrocarbon fuels" in industries like long-haul aviation, SAFs are essential for tackling difficult-to-abate issues. By using a circular method in place of linear extraction, PtX fixes carbon and hydrogen into equivalent, carbon-neutral commodities. Projects like the massive Project Roadrunner in Texas, which will use PtX technology to manufacture eSAF and eDiesel for international carriers, serve as examples of this.
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Integration with biorefineries
The bio-based approach and the technological PtX pathway are smoothly integrated by the CCE paradigm. While PtX can combine collected CO2 (perhaps biogenic CO2 from waste operations) and green H2 to create synthetic fuels through processes like Fischer–Tropsch synthesis, biorefineries use sustainable biomass (like algae) to create products like HEFA.
B. Paradigm shift in fuel sourcing: From fossil feedstock to CO2 utilization (Power-to-liquids)
By producing carbon-neutral fuels, the use of collected CO2 to create hydrocarbon chains fundamentally alters fuel supply. There is "zero net carbon dioxide emitted or withdrawn from the environment" since the carbon released during combustion is equal to the carbon retained.
The technical path consists of the following steps: capturing CO2 (from DAC or concentrated industrial exhaust, like as cement manufacturing); converting it into synthesis gas with Green Hydrogen; and, lastly, catalytically converting it into hydrocarbons using the Fischer-Tropsch (FT) synthesis reactor. A 'drop-in' solution for shipping and aviation is thus offered.
Fuel Source Pathway |
Primary Feedstock |
Key Conversion Technology |
Carbon Accounting Status (Net CO2) |
Key Strategic Challenge/Constraint |
Traditional Fossil Fuels |
Geological (Non-renewable) |
Refining, Combustion |
Net Carbon Emitter |
Resource depletion, Climate impact |
Carbon-Neutral e-Fuels (PtL) |
Captured CO2 (Atmosphere/Industrial) |
Fischer-Tropsch Synthesis (PtL) |
Carbon Neutral (Zero Net Emission) |
High energy input; Availability/Cost of Green Hydrogen |
C. Graphene composites: A burgeoning industry within the CCE materials ecosystem
The single-layer carbon (graphene)-based graphene composites sector is essential to constructing the extremely effective infrastructure that the CCE demands.
The industry is characterised by a new yet emerging paradox:
• Burgeoning growth: It is projected that the polymer-based industry (construction, automotive) will expand at a robust Compound Annual Growth Rate (CAGR) of 37.2%. With a predicted CAGR of 38.1%, the Asia-Pacific region is anticipated to lead market advancement.
• Nascent reality: Revenues are small despite this expansion (for example, one major company reported graphene sales of only about A$145,000 in Q2 FY2025), indicating the need to overcome obstacles in high-volume, cost-effective production..
Some of Graphene’s deep impact applications include:
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Advanced energy storage (improving conductivity in new generation batteries such as Lithium-Ion and Aluminium-Ion Batteries);
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Sustainable infrastructure (improving cement properties for CO2 savings, strength, durability and costs efficiency ) and
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Sustainable fuels (hydrogen storage capacity).
Conclusion (Part 1)
The global climate effort has been hindered by the narrow focus on "decarbonisation," which ignores the systemic effects of material production and usage. The full framework required to handle all of the world's greenhouse gas emissions is provided by the Carbon Circular Economy (CCE). The development of enabling super-materials (Graphene) and the technical ability to close the carbon loop through improved synthetic pathways (PtL) are driving a radical shift in sustainable economic ambition. Instead of only reducing linear resource consumption, this calls for a structural shift where economic prosperity is created by design, maintaining value and reducing the 45% embodied carbon gap.
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