The industrial sector is responsible for 21% of global carbon emissions, more than 9 gigatons of CO2 per year
The industrial sector is responsible for 21% of global CO2 emissions, releasing more than 9 gigatons of CO2 per year, driven primarily by emissions from the cement, chemicals, and steel sectors. Decarbonizing the cement, steelmaking, and chemicals industries alone will cut global industrial emissions by half, but these industries are projected to continue growing for the long term. Therein lies the challenge for the industrial sector: How can carbon neutrality be attained while meeting the increasing demand for products? Building a roadmap for the decarbonization of industry is a complex endeavor that requires a deep understanding of the technologies available today as well as in the future to adequately prepare for tighter regulations in an increasingly competitive market.
Lux’s new report, “Decarbonization of Industry: The Path Toward Carbon Neutrality,” introduces a framework for assessing the technologies for decarbonizing industry and defines the challenge that entails by categorizing its carbon reduction technologies according to their complexity and ease of adoption. Decarbonization technologies can be split into three levels of complexity:
“These three levels of technologies are the building blocks of industrial decarbonization,” explains Runeel Daliah, Senior Analyst at Lux Research and lead author of the report. “Although we talk about industrial decarbonization as a single concept, there is no monolithic solution to the industry’s problem; industrial decarbonization is realized through bit-by-bit application of diverse technologies that are unique to specific industries and their core processes.”
Decarbonization of industry is complex – an industrial plant requires high investment, often to the tune of billions of dollars, and is built to last several decades. As companies pledge to reach carbon neutrality by 2050, they are under significant pressure to transition from the thermochemical platforms they have been reliant on for the past three centuries to transformational technologies in just three decades. Additionally, there are competitive concerns for industrial products. If there are no regulations promoting the adoption of low-carbon products at the consumer end, decarbonization will reduce an industrial player’s competitiveness on the regional and global market. Financial penalties on fossil-based manufacturing are not enough to support the decarbonization of industry – incentives for the import and consumption of low-carbon products within one’s borders are also necessary for a global transition to a carbon-neutral industry. Download the executive summary of the report to learn more.