IFIs and Heavy Industry Decarbonization

The document highlights the critical need for timely financing to decarbonize heavy industry in emerging and developing economies, noting that steel and cement production alone account for 11% of global greenhouse gas emissions. It argues that IFIs can accelerate the transition to net zero by providing concessional capital to de-risk investments and offering technical assistance for national and corporate roadmaps. However, IFI engagement is currently in its early stages due to barriers such as misaligned financing mandates, the massive scale of required investments, and competing country priorities.

• Heavy industry is a significant driver of global emissions, with steel production contributing 6% of all global greenhouse gas emissions (8% of CO2) and cement production contributing 5% (6% of CO2).
• International financial institutions (IFIs) can facilitate the transition to net zero by using targeted concessional capital to reduce risk for commercial financiers and first movers, while providing technical assistance for project pipelines, capacity development, and transition plans.
• Current IFI involvement in heavy industry decarbonization is limited by several barriers, including the scale of necessary investments, country priorities favoring other sectors, and a misalignment between IFI mandates and corporate needs.

APA

Stockholm Environment Institute (2023). IFIs and Heavy Industry Decarbonization. https://www.sei.org/publications/ifis-heavy-industry-decarbonization/

Chicago

Stockholm Environment Institute. IFIs and Heavy Industry Decarbonization. 2023. https://www.sei.org/publications/ifis-heavy-industry-decarbonization/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=IFIs and Heavy Industry Decarbonization |date=6 December 2023 |url=https://www.sei.org/publications/ifis-heavy-industry-decarbonization/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2023ifis, author = {{Stockholm Environment Institute}}, title = {{IFIs and Heavy Industry Decarbonization}}, institution = {Stockholm Environment Institute}, year = {2023}, month = dec, url = {https://www.sei.org/publications/ifis-heavy-industry-decarbonization/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }