Pathways to decarbonization

High-impact sectors and the road to net-zero

Decarbonization has become a priority for many investors, regulators and businesses and other stakeholders. Companies from high-emitting and hard-to-abate sectors play a crucial role in this effort—from their own value chains to helping reduce scope 3 emissions of other industries.

These high-emitting and hard-to-abate industries—which include power, steel, chemicals, automotive, food, and heavy road transport—account for approximately 82% of total global C0₂ eq emissions (figure 1). While their decarbonization efforts are pivotal to hitting emission targets, these companies are also dealing with long asset lifespans, high energy dependency, and complex electrification requirements. As a result, possible pathways to decarbonization may involve large technology investments, business model evolutions, cross-collaboration—and the adoption of a new business mindset.

Building on feedback from clients, public sector teams, and the scientific community, these perspectives are designed to help leaders explore new modes of thinking, spark important conversations, and identify viable decarbonization pathways for their organizations.

Each of the sector perspectives offers a foundational starting point for leaders who would like to better understand the challenges, levers, policy and regulatory landscape across regions, success factors, stakeholders, and the potential of clean hydrogen—and includes links to in-depth reports to explore more.

References

1. IEA, Global Energy Review: CO2 emissions in 2021 Analysis, March 2022.
2. IEA, Chemicals Analysis, September 2022.
3. IEA, Iron and Steel Analysis, September 2022.
4. IEA, Cars and Vans Tracking Report, September 2022.
5. IEA, Executive Summary – Breakthrough Agenda Report 2022, September 2022.
6. IEA, World Energy Outlook 2022, p. 449, November 2022.
7. IEA, Global Energy Review: CO2 Emissions in 2021, March 2022.