Toward Climate-Neutral Heavy Industry: An Analysis of Industry Transition Roadmaps

Abstract

Global efforts to decarbonize heavy industry remain insufficiently aligned. While relatively new forms of international collaboration between and among states and companies are emerging, there is still considerable room to embark on more structured knowledge-sharing activities and coherent action among nations. In order to assess the concrete needs of an industry transition at scale, this paper analyzes 29 industry transition roadmaps across 13 countries, spanning the value chain of extractive, processing, and end-use heavy industry sectors. We compare and contrast these roadmaps according to the degree of ambition in decarbonization targets, the financial costs of implementing the roadmaps, and the key mitigation measures to achieve decarbonization targets. Importantly, this paper synthesizes and categorizes key policy, finance, and technology requirements called for to enable roadmap implementation. We demonstrate that the implementation of roadmaps across different industries and countries encounters common and comparable barriers and challenges, highlighting the need for international cooperation to facilitate global industry transitions.

Roadmap to Neutrality – What Foundational Questions Need Answering to Determine One’s Ideal Decarbonisation Strategy

“…Even though the general approach towards what needs to be done may be similar to approaches applied by others, this roadmap to neutrality differs by (a) taking the perspective of an executive decision maker on the demand-side and (b) by going a level deeper, where most other approaches indicate what needs to be done, either in general from a system or country level [24][25], or on a micro level (i.e., technical optimisation options and procedures) [21][22]37]. In addition, where existing approaches outline technical roadmaps [37] or indicate what has to be done but not always how [26][27][28]74] and remain short of putting it in context, the approach presented explained the underlying strategic aspects that need to be taken on beforehand.…”

“…These studies address decarbonisation of industry from either a policy, a supply side or technology perspective -often with a focus on energy intensive industries -but are short of giving corporate stakeholders (irrespective of their company's energy intensity) concrete advice on how to get started from an individual company's perspective. Similarly, studies like the one of Johnson et al [25] analyse and compare national roadmaps for decarbonising heavy industry on a global scale alongside factors such as ambition, financial effort and mitigation measures, thus again leaving a gap when it comes to company-tailored advice.…”

Framework for industry’s net-zero transition

“…Such paths may consider availability of resources, access to finance, human-resource needs and supply, manufacturing capacity, costs development and the age of the capital stock that can help transition to go beyond the current policies path. Transition paths can target a policy goal to be achieved by a given year such as realising a certain share of local energy resources or renewable energy in the energy system by 2030 (IRENA, 2016 [47]) or achieving carbon neutrality by midcentury (IEA, 2021 [48]). In addition to such global paths, numerous assessments are available at the level of countries, regions and individual energy sectors.…”

Kerangka kerja untuk transisi netralitas karbon sektor industri

“…Step 3 Assess the business cases of a net-zero pathway for the low-carbon transition of the Focus Area and identify a pipeline of projects terbarukan dalam sistem energi pada tahun 2030 (IRENA, 2016 [47]) atau mencapai netralitas karbon pada pertengahan abad (IEA, 2021 [48]). Selain jalur global tersebut, banyak penilaian tersedia di tingkat negara, wilayah, dan sektor energi individu.…”