The heavy industry accounts for approximately one-third of the world's energy use and is responsible for one-quarter of the world's energy consumption. global greenhouse gas emissionsbut decrease these to reach the zero carbon by 2050 is possible.
In an article published by World Economic Forum, Rana GhoneimHead of the Energy Infrastructure and Systems Division of the United Nations Industrial Development Organization (UNIDO); and Daniel MorrisClean Energy Leader, Climate Investment Funds, argue that it is necessary to change the current situation in sectors with high emissions, such as the cementthe steel and the chemicals.
Experts indicate that developing economies currently account for as much as 90% of the combined production of the heavy industryThey play a key role in achieving the objective.
"These countries now have the opportunity to put their industrial sectors on a zero-carbon path. They can start with incremental innovation, such as energy and resource efficiency and material circularity, on existing assets," the article states.
Therefore, efforts should focus on developing countries, where the potential for transformational change is greatest due to rapid growth; working on the climate finance and to achieve low-cost financing to get these projects off the ground.
The route to a "chain reaction
In recent months, the UNIDO and the VAT ID work on a new type of partnership in the high-emission industrial space designed to unleash a "chain reaction" from climate action throughout the developing world.
Its goal is to work together with countries as they develop roadmaps towards zero net emissions and identify existing gaps, especially financing gaps, the article explains.
"That information can be used to provide capacity support and low-cost financing through multilateral development banks to get these one-of-a-kind projects off the ground while helping to achieve a just transition. The goal is to use the roadmap to support early transformation projects that can generate private sector financing on a larger scale, helping to create a virtuous cycle that can drive growth across sectors, regions and entire countries."
This model combines the strengths of the CIF and UNIDO's work in the developing world to equip emerging markets with tools they can use to respond to the climate challenges they face.
"We stand ready to apply it to the green transformation of heavy industry, a transformation that will contribute greatly to our collective response to the climate crisis."
However, many stakeholders will need to work together: local and national governments, multilateral development banks, financial institutions, the private sector, workers and civil society.
Source: World Economic Forum
