5 ways to decarbonize heavy industry

Heavy industry accounts for approximately 30% of global emissions, with sectors like steel, cement, and aviation facing significant technical challenges. The authors argue that the transition to net-zero is a growth opportunity rather than a financial burden, noting that climate-related policy could permanently reduce the value of high-polluting companies by 43% while adding 33% to best performers. To accelerate this transition, the document proposes five key changes: establishing global policy consistency to prevent carbon leakage, prioritizing both natural and technological carbon removals, incentivizing circular value chains, directing up to $100 trillion in finance toward the greening of fundamental industries, and ensuring a fair transition for industrial heartlands to enable inclusive growth.

• Heavy industry is responsible for roughly 30% of global emissions, with specific sectors like steel, cement, and aviation facing inherent chemical or physical barriers to decarbonization.
• There is a significant financial risk for high-polluting companies and a corresponding reward for leaders in the transition; UN PRI analysis suggests climate policy could decrease the value of the highest polluters by 43% and increase the value of top performers by 33%.
• The transition to a decarbonized heavy industry will require massive financial investment, estimated at up to $100 trillion between the present and 2050, which must be directed toward industries essential for greening the entire economy.
• Five systemic changes are necessary to foster innovation in heavy industry: global policy consistency to avoid carbon leakage, a combination of natural and technological carbon removals, circular value chain practices, targeted finance, and a fair transition to ensure inclusive growth and job creation.

APA

East, C. F. W. (2021). 5 ways to decarbonize heavy industry. World Economic Forum. https://www.weforum.org/stories/energy-transition/5-ways-to-unlock-a-zero-carbon-future-for-heavy-industry/

Chicago

East, Christiana Figueres, Warren. 5 ways to decarbonize heavy industry. World Economic Forum, 2021. https://www.weforum.org/stories/energy-transition/5-ways-to-unlock-a-zero-carbon-future-for-heavy-industry/.

Wikipedia

{{cite press release |last1=East |first1=Christiana Figueres, Warren |title=5 ways to decarbonize heavy industry |publisher=World Economic Forum |date=22 June 2021 |url=https://www.weforum.org/stories/energy-transition/5-ways-to-unlock-a-zero-carbon-future-for-heavy-industry/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{east2021ways, author = {East, Christiana Figueres, Warren}, title = {{5 ways to decarbonize heavy industry}}, publisher = {World Economic Forum}, year = {2021}, month = jun, url = {https://www.weforum.org/stories/energy-transition/5-ways-to-unlock-a-zero-carbon-future-for-heavy-industry/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }