Decarbonizing Hard-to Abate Sectors with Renewables: Accelerating Net-Zero Ambitions
Background:
Decarbonising hard-to-abate industries: heavy-duty transport, shipping, aviation, iron and steel, chemicals and petrochemicals is particularly critical for meeting global climate targets. These sectors collectively account for 25% of global energy consumption and 20% of CO2 emissions. Despite technological progress, these industries are not on track to achieve net-zero emissions by mid-century without significant intervention and innovation. Transitioning to renewable energy and enhancing energy efficiency are crucial for reducing emissions in these sectors (IRENA, 2023).
Renewables can play a central role in the decarbonisation of all hard to abate sectors. The drastic cost reductions that we have observed in recent years make renewable power the cheapest source of carbon-neutral energy worldwide. Furthermore, there is potential for further cost reductions through technological learning and economies of scale. The full decarbonisation of the hard-to-abate sectors will require a combination of approaches, given the characteristics of each sector. However, most emission reductions will have to be achieved through a combination of five main pathways which rely primarily on renewable energy and energy efficiency, as presented in Figure 1. (IRENA, 2024). Several enabling conditions need to be put in place to accelerate the decarbonisation of hard-to abate sectors. These will require decisive action by governments, as well as by the private sector. They also have fundamental implications in terms of national and international policy and regulatory environments, technology and infrastructure planning, global commodity markets, international supply chains and business models.
About the organizer:
The objective of the Alliance for Industry Decarbonization, supported by IRENA, is to facilitate dialogue on industry level and increase cooperation to help companies to develop solid decarbonization strategies and implementation plans, aligned with their countries’ net-zero and decarbonization commitments. The Alliance is to serve as a global platform for enhancing dialogue through exchange of insights, experiences and best practices. Members of AFID have individual reduction plans that collectively aim to reduce 51% of direct and indirect greenhouse gas (GHG) emissions and grow the installed renewable capacity from 84 gigawatts (GW) installed in 2023 up to 187 GW by 2030. Moreover, Alliance’s members committed to almost double installed green hydrogen, drive green energy solutions, increase workforce re-skilling from currently 15% to 91% and significantly boost investments in energy transition projects to more than USD 50 billion by the end of this decade. In accordance with its Implementation Plan, AFID has fostered actions for decarbonization of industrial value chains, promote understanding of renewables-based solutions and their adoption by industry with a view to contributing to country-specific net-zero goals.
The key pillars of the Alliance include Renewables, Bioenergy with CCUS, Green Hydrogen, Circularity, Human Capital and Finance. In implementing its Decarbonization Commitment, more than 75 member companies and ecosystem knowledge partners of AFID are advancing joint activities, initiatives and realized projects on the ground to advance they key decarbonization pillars related to technologies, industrial processes and enablers. AFID underlines the importance of collaboration among governments, industry stakeholders, and research institutions to create supportive policies and incentives. It calls for significant investment in research, the implementation of pilot projects, and workforce training to advance decarbonisation technologies and ensure their successful implementation (AFID, 2024). To know more about AFID, visit the website: https://allianceforindustrydecarbonization.org
Objective:
This session at New York Climate Week 2024 will provide a platform to share industry experiences and discuss what must be done to decarbonize hard-to abate sectors with renewables aiming at accelerating net-zero ambitions. It will bring together the key stakeholders to share experiences and insights on policy frameworks, technological innovations, and cross-sectoral collaboration for achieving decarbonisation goals efficiently. The session will also highlight the importance of partnerships in driving the global transition to a sustainable and low-carbon future.
Reference reports: IRENA (2024), Decarbonising hard-to-abate sectors with renewables: Perspectives for the G7, International Renewable Energy Agency.
IRENA (2023), World Energy Transitions Outlook 2023: 1.5°C Pathway, International Renewable Energy Agency.
AFID (2024), Solutions to decarbonise heat in the steel industry, Alliance for Industry Decarbonization.