The Net-Zero Industry Tracker 2023 underscores a pressing need for a substantial investment of $35 trillion globally by 2050 to drive the transition of heavy industries towards net-zero emissions. This figure, quadrupling previous estimates, was put forward by the International Renewable Energy Agency and is echoed by recent data from an Abu Dhabi-based agency. The report emphasizes the urgency for sectors such as steel, cement, and aluminum — which consume thrice the energy levels of the US and are major contributors to global greenhouse gas emissions — to shift to low-emission technologies. This transformation is essential not only for reducing emissions but also for fostering economic growth and innovation.
The report stresses the critical role of clean energy sources, including solar, wind, nuclear, and geothermal power, in achieving the International Energy Agency’s net-zero goals. It also highlights the importance of investing in carbon capture, utilization and storage (CCUS) technologies and the development of hydrogen production through electrolyzers. These technologies are expected to reach commercial maturity after 2030.
To facilitate the adoption of these technologies, the report suggests the formation of public-private partnerships. As advocated by Muqsit Ashraf from Accenture (NYSE:) Strategy, these collaborations are essential for ensuring equitable access to affordable clean energy solutions while considering economic impacts. They are envisioned to create supportive environments for shared infrastructure and innovation in low-emission technologies.
The call for investment and policy support comes at a time of increased activity and demand in energy-intensive industries. Despite an annual emission rise of 8%, there is a push towards adopting renewable sources and CCUS technologies. The report’s findings indicate that meeting the net-zero targets will require not just a shift in energy sources but also a comprehensive overhaul of industry practices and support mechanisms.
The World Economic Forum’s recommendations include promoting clean power tech advancements, creating shared infrastructures, standardizing low-emission product frameworks, aligning global emission reduction requirements, and enhancing transparency around eco-friendly alternatives.
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