$13.5trn required for decarbonisation of major industries — WEF
In a significant report released by the World Economic Forum (WEF) in partnership with Accenture, an estimated $13.5 trillion investment has been deemed necessary to decarbonize critical industries and meet the ambitious net-zero emissions target.
The report, titled ‘The Net-Zero Industry Tracker 2023,’ evaluates the current state of net-zero efforts across eight key sectors.
These sectors, which include steel, cement, aluminium, ammonia (excluding other chemicals), oil and gas, aviation, shipping, and trucking, are particularly challenging to decarbonize as they rely on fossil fuels for 90 percent of their energy needs.
The WEF’s analysis highlights the urgency of transforming these industries, which are responsible for a substantial 40 percent of global greenhouse gas emissions. Roberto Bocca, the Head of the Centre for Energy and Materials at the World Economic Forum, emphasised the critical nature of this endeavor.
According to Bocca, achieving net-zero emissions in the industrial and transport sectors is a cornerstone in the global effort to combat climate change.
“Decarbonising these industrial and transport sectors, which emit 40 percent of global greenhouse gas emissions today, is essential to achieving net zero, especially as demand for industrial products and transport services will continue to be strong,” he said.
The report stressed that the $13.5 trillion in investments is derived from average clean power generation costs of solar, off-shore and on-shore wind, nuclear and geothermal, electrolyzer costs for clean hydrogen and carbon transport, and storage costs.
It emphasised the urgency for creating a robust enabling environment, including low-emissions technologies, infrastructure, demand for green products, policies and investments.
