Achieving Net Zero Heavy Industry Sectors in G7 Members - IEA

Achieving Net Zero Heavy Industry Sectors in G7 Members is a new report by the International Energy Agency that focuses on the implementation of policies aimed at drastically lowering CO2 emissions from heavy industries in the G7 and beyond. This work, requested by Germany’s 2022 G7 Presidency, builds on analysis from the IEA’s Net Zero by 2050: A Roadmap for the Global Energy Sector. It follows Achieving Net Zero Electricity Sectors in G7 Members, produced as an input to the UK’s G7 Presidency in 2021. This report focuses on two key areas for achieving net zero heavy industry sectors in G7 members, both of which are priority areas for Germany’s 2022 G7 Presidency.The first is a toolbox of policies and financing mechanisms to initiate and sustain the industry sector transition. The second is a series of common and practicable definitions of what constitutes near zero emission steel and cement production, a key step to establishing future policy mechanisms, irrespective of the exact mitigation pathway or the specific technologies chosen. The report is designed to inform policy makers, material producers and consumers, investors, leading sectoral initiatives and the research community in the lead up to the G7 Climate and Energy Ministerial in May 2022 and beyond.G7 members Canada, France, Germany, Italy, Japan, the United Kingdom, the United States plus the European Union account for around 40% of the global economy, 30% of energy demand and 25% of energy system CO2 emissions. Meanwhile, heavy industry’s direct CO2 emissions amount to around 6 billion tonnes per year, more than one-sixth of total CO2 emissions from the global energy system. Producers of steel and cement in particular face unique challenges to drastically reduce their emissions footprint. The G7’s economic heft, technology leadership and international alliances present it with a special role in leading the way and inspiring successful energy transitions in these crucial sectors. The new report says “There is no way to reach net zero without dramatic reductions in emissions from heavy industry, and G7 economies have both a responsibility and an opportunity to take a leadership role in driving that forward. Emissions from heavy industry are among the most stubborn, making it essential that countries with significant financial and technological resources use them to scale up practical solutions in a coordinated way. This new report sets out realistic and actionable steps for G7 members that can provide a catalyst for the global progress that is urgently needed. To achieve our goal to limit the global temperature rise to 1.5 degrees, we have to decarbonize our industries. This decade is key to set the tracks to climate neutrality. Especially in sectors where emissions are high but hard-to-abate like steel and cement, we have to fundamentally shift production methods.”

Achieving Net Zero Heavy Industry Sectors in G7 Members - IEA

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