The steel, cement, aluminum, ammonia, oil and gas industries generate approximately 80 percent of industrial emissions and demand for these products is expected to increase by a further 30 to 80 percent by 2050, the World Economic Fund revealed.
The premise is that there will be no net zero future if industries do not decarbonize. Net Zero Industry Tracker is a tool launched by the World Economic Forum to increase transparency and accelerate industrial transformation.
This initiative offers a comprehensive framework for monitoring industries' progress toward net zero and provides information to industry leaders, policymakers and consumers on the most critical and effective actions.
Define "low emissions" production thresholds to drive decarbonization trajectories.
Net zero targets are necessary to set long-term ambitions, but they are insufficient to drive progress year on year. For basic materials, as well as oil and gas, international sustainability standards should establish emission intensity thresholds that anchor what "low-emissions" production looks like in a net-zero emissions world.
2. Establish a public-private investment agenda to lower the cost of clean technologies.
In the future, economies of scale, efficiency gains and additional innovations are likely to reduce costs, but this can only happen if more large-scale projects are developed. The public and private sectors must come together to rapidly multiply such projects around the world.
3. Promote low-carbon demand and establish transparency and visibility among producers.
It is critical that industry stakeholders strengthen and amplify demand signals for low-emission products. Public and private buyer commitments are essential to provide visibility into the volume and price of green purchasing. Carbon footprint product labeling standards can also help differentiate materials and incentivize consumers to pay premiums.
4. Strengthen net-zero policies and regulations to level the playing field for low-carbon producers.
Stable and ambitious policy frameworks are needed to level the playing field and incentivize companies to venture into low-carbon markets, while governments must facilitate the emergence of economically viable markets.
5. Develop risk-sharing mechanisms, green taxonomies, and public financing to reduce investment risk and attract capital.
To reduce the risk exposure of companies and accelerate capital inflows, innovative financing and risk-sharing mechanisms will be critical. Multilateral public-private partnerships, joint ventures across industries and value chains, sustainable finance taxonomies, and public funding in the form of grants, low-interest and concessional loans, etc., are imperative to attract capital for early commercial-scale assets.
Without radical change, industrial emissions will rise along with demand for industrial products, so the world must do all it can to address the challenge of decarbonizing industry, stresses the World Economic Forum.
