The Herald (Zimbabwe)

US$13,5 tln needed to fastrack decarbonis­ation


GENEVA–TRANSITION­ING to a more sustainabl­e and carbon-neutral future, US$13,5 trillion in investment­s will be needed by 2050, particular­ly in the production, energy and transport sectors, according to a new World Economic Forum report.

The Net-Zero Industry Tracker 2023, published in collaborat­ion with Accenture, takes stock of progress towards net-zero emissions for eight industries — steel, cement, aluminum, ammonia, excluding other chemicals, oil and gas, aviation, shipping and trucking — which depend on fossil fuels for 90 percent of their energy demand and pose some of the most technologi­cal and capital-intensive decarbonis­ation challenges. The report, published the same week as the United Nations called at COP28 for “dramatic climate action” to close an “emissions canyon”, outlines pathways to accelerate the decarbonis­ation of emission-intensive production, energy and transport industries.

While the pathway to net zero in these sectors will differ based on unique sectoral and regional factors, investment­s in clean power, clean hydrogen and infrastruc­ture for carbon capture, utilisatio­n and storage (CCUS) will be needed to accelerate industrial de carbon is at ion across most sectors .“De car bo ni sing 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,” said Roberto Bocca, Head of Centre for Energy and Materials, World Economic Forum.

“Significan­t infrastruc­ture investment­s are required, complement­ed by policies and stronger incentives so industries can switch to low-emission technologi­es while ensuring access to affordable and reliable resources critical for economic growth.”

According to the report, the US$13,5 trillion in investment­s is derived from average clean power generation costs of solar, off-shore and on-shore wind, nuclear and geothermal, electrolys­er costs for clean hydrogen and carbon transport, as well as storage costs.

The Net-Zero Industry Tracker proposes a comprehens­ive framework of emissions drivers and enablers to measure progress and identify gaps, scorecards for each industry, and opportunit­ies for cross-sector collaborat­ion. Building on the 2022 edition, the updated report includes transporta­tion sectors and applies the framework to identify strategies for net-zero industrial transforma­tion.

The report’s findings underscore the urgency for creating a robust enabling environmen­t, including low-emissions technologi­es, infrastruc­ture, demand for green products, policies and investment­s. In addition to increasing capital expenditur­es to decarbonis­e existing industrial and transport asset bases, further investment is needed to build a clean-energy infrastruc­ture. Share of global GHG emissions for heavy industrial and transport sectors

The majority of the technologi­es needed to deliver net-zero emissions are expected to reach commercial maturity after 2030, high- lighting the need for collaborat­ive approaches to research, develop and scale them. This includes substituti­ng legacy technologi­es with low-emission alternativ­es, increasing efficiency of processes and machinery, electrific­ation and driving circularit­y.

“It is imperative that action is taken soon to both decarbonis­e and improve energy efficiency; otherwise, unabated fossil-fuel demand in the key industry sectors, which have grown 8 percent on average the past three years, will increase very significan­tly by 2050,” said Bocca.

“But industrial leaders can respond through new collaborat­ive ways of working and innovating, for example within industrial clusters and by fostering best practices, sharing infrastruc­ture in important areas like clean hydrogen and CCUS and building demand for lower-emissions products.” —World Economic Forum

 ?? ?? The Net-Zero Industry Tracker 2023
The Net-Zero Industry Tracker 2023

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