Pathways to decarbonisation
High-emitting and hard-to-abate industries are responsible for the majority of greenhouse gas emissions, which makes them priority industries for decarbonisation. This collection of insights, developed by Deloitte’s leading global industry specialists, provides possible pathways to decarbonisation for high-impact sectors.
High-impact sectors and the road to net zero
Decarbonisation 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 decarbonisation 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 decarbonisation 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 decarbonisation pathways for their organisations.
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.
Explore sector insights
Hydrogen
Clean hydrogen provides important emissions savings to help decarbonise hard-to-abate sectors such as industry (chemicals, steel, etc.), heavy duty transport (aviation, maritime etc.), and power production.
Chemicals
The chemical sector plays a key role in the industrial value chain and drives sustainability knowledge, innovation, and demand across industries.
Food
Unlike some other critical path or hard-to-abate sectors, the food industry can become net positive.
Power
The electrification of transportation, buildings, industry, and other sectors will likely be a key pillar on the path to net zero.
Steel
A successful green steel transition will likely require the involvement of multiple stakeholders.
Built environment
With a complex value chain, industry players should embrace systemic change rather than focus on incremental progress.
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References
- IEA, Global Energy Review: CO2 emissions in 2021 Analysis, March 2022.
- IEA, Chemicals Analysis, September 2022.
- IEA, Iron and Steel Analysis, September 2022.
- IEA, Cars and Vans Tracking Report, September 2022.
- IEA, Executive Summary - Breakthrough Agenda Report 2022, September 2022.
- IEA, World Energy Outlook 2022, p. 449, November 2022.
- IEA, Global Energy Review: CO2 Emissions in 2021, March 2022.
Jennifer Steinmann
