High-Emitting Sectors: Challenges and Opportunities for Low-Carbon Suppliers

The report examines the transition to low-carbon production in aviation, shipping, trucking, aluminium, cement/concrete, steel, and carbon dioxide removal (CDR). It identifies a 'first-mover paradox' where high production costs and uncertain demand signals hinder the scaling of breakthrough technologies. Key cross-sector barriers include a lack of standardized emissions measurement, competition for critical inputs like green hydrogen and renewable energy, and buyer risk aversion. The document advocates for long-term offtake agreements, innovative contracting, and policy interventions—such as the EU's Carbon Border Adjustment Mechanism—to bridge the price gap between conventional and low-carbon goods.

• Aviation is currently not on track to meet the International Energy Agency's Net Zero Emissions by 2050 scenario, with sustainable aviation fuel (SAF) remaining the only commercially viable near-term pathway despite high costs.
• The shipping industry faces significant financial hurdles, with synthetic hydrogen-based fuels costing 2 to 6 times more than regular bunker fuel, and a need for approximately $40 billion in annual investment for zero-emission fuel bunkering and production.
• Decarbonizing trucking is hindered by infrastructure bottlenecks, specifically the difficulty for logistics companies to secure necessary power allocations from electric utilities for fast-charging EV fleets.
• Primary aluminium production is heavily dependent on electricity for smelting, which accounts for over 70% of its emissions; transition opportunities include inert anode smelting and carbo-chlorination.
• The cement and concrete sector is uniquely challenged by process emissions, with clinker production responsible for 88% of overall emissions, necessitating a shift toward non-fossil supplementary cementitious materials (SCMs) and carbon capture.
• Steel suppliers face a 'first-mover disadvantage' where the first firms to market low-carbon steel may struggle to sell products due to a ~40% price premium, effectively de-risking the technology for later competitors.
• Engineered carbon dioxide removal (CDR) is limited by high costs and a lack of mature measurement, reporting, and verification (MRV) standards, though direct air capture (DAC) is viewed as a promising solution for permanent storage.
• Across all sectors, the absence of globally accepted emissions measurement standards prevents buyers and investors from accurately determining the impact of low-carbon solutions on their carbon footprints.
• Suppliers are facing critical input constraints and competition for renewable energy and low-carbon hydrogen, which are essential for technologies like direct air capture and green steel production.
• Buyer risk aversion is a major barrier, as many procurement teams lack the internal carbon pricing tools and expertise to value the long-term economic and climate benefits of a green premium.

APA

World Economic Forum (2024). High-Emitting Sectors: Challenges and Opportunities for Low-Carbon Suppliers. https://www3.weforum.org/docs/WEF_High_Emitting_Sectors_Challenges_and_Opportunities_for_Low_Carbon_Suppliers_2024.pdf

Chicago

World Economic Forum. High-Emitting Sectors: Challenges and Opportunities for Low-Carbon Suppliers. 2024. https://www3.weforum.org/docs/WEF_High_Emitting_Sectors_Challenges_and_Opportunities_for_Low_Carbon_Suppliers_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=High-Emitting Sectors: Challenges and Opportunities for Low-Carbon Suppliers |date=September 2024 |url=https://www3.weforum.org/docs/WEF_High_Emitting_Sectors_Challenges_and_Opportunities_for_Low_Carbon_Suppliers_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024highemitting, author = {{World Economic Forum}}, title = {{High-Emitting Sectors: Challenges and Opportunities for Low-Carbon Suppliers}}, institution = {World Economic Forum}, year = {2024}, month = sep, url = {https://www3.weforum.org/docs/WEF_High_Emitting_Sectors_Challenges_and_Opportunities_for_Low_Carbon_Suppliers_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }