Charting the Course: Navigating Decarbonisation Pathways in Greece, Germany, The Netherlands, and Spain’s Industrial Sectors

Abstract

In the quest for a sustainable future, energy-intensive industries (EIIs) stand at the forefront of Europe’s decarbonisation mission. Despite their significant emissions footprint, the path to comprehensive decarbonisation remains elusive at EU and national levels. This study scrutinises key sectors such as non-ferrous metals, steel, cement, lime, chemicals, fertilisers, ceramics, and glass. It maps out their current environmental impact and potential for mitigation through innovative strategies. The analysis spans across Spain, Greece, Germany, and the Netherlands, highlighting sector-specific ecosystems and the technological breakthroughs shaping them. It addresses the urgency for the industry-wide adoption of electrification, the utilisation of green hydrogen, biomass, bio-based or synthetic fuels, and the deployment of carbon capture utilisation and storage to ensure a smooth transition. Investment decisions in EIIs will depend on predictable economic and regulatory landscapes. This analysis discusses the risks associated with continued investment in high-emission technologies, which may lead to premature decommissioning and significant economic repercussions. It presents a dichotomy: invest in climate-neutral technologies now or face the closure and offshoring of operations later, with consequences for employment. This open discussion concludes that while the technology for near-complete climate neutrality in EIIs exists and is rapidly advancing, the higher costs compared to conventional methods pose a significant barrier. Without the ability to pass these costs to consumers, the adoption of such technologies is stifled. Therefore, it calls for decisive political commitment to support the industry’s transition, ensuring a greener, more resilient future for Europe’s industrial backbone.