Transitioning Industrial Clusters towards Net Zero

The report analyzes how governments in ten nations utilize fiscal incentives, renewable energy targets, and collaborative industrial cluster models to achieve net-zero goals. It highlights a global trend toward prioritizing renewable energy and electrification, while noting that carbon capture, utilization, and storage (CCUS) and hydrogen frameworks are in earlier stages in emerging economies. The document provides specific country profiles, including Brazil, Sweden, Portugal, Brunei, Thailand, Malaysia, India, Japan, the UAE, and South Africa, detailing their legislative support for key technologies and showcasing 'flagship' industrial clusters like the Green Hydrogen Hub in Pecém-Ceará and the Industry Park of Sweden.

• There is a global trend where governments prioritize renewable energy sources—including green hydrogen, solar, wind, and biofuels—over other solutions like energy efficiency and CCUS in terms of funding and financial incentives.
• EU policies, specifically the Carbon Border Adjustment Mechanism (CBAM), are significantly influencing the industrial decarbonization strategies of non-EU nations such as Brazil, South Africa, and the United Arab Emirates.
• Carbon pricing is becoming more prominent in emerging markets, particularly in South-East Asia, though its implementation is hindered by concerns regarding high energy costs and reduced economic competitiveness.
• Brazil's industrial decarbonization is supported by the National Guidelines for Climate Neutrality, which aims for net zero by 2050 and targets 50% renewable energy in the energy matrix by 2030.
• Sweden targets negative industrial emissions by 2045, utilizing a bottom-up approach through 'Fossil Free Sweden' and the 'Industrial Leap' (Industriklivet) program, which provided €80.6 million in 2022 for GHG reduction projects.
• Portugal is investing €185 million in green hydrogen and €715 million in industrial decarbonization between 2021 and 2029, primarily through the Portuguese Recovery and Resilience Plan (PRRP).
• Japan is focusing on 'Green Transformation' (GX) with a financial package estimated at over JPY 150 trillion over the next decade, including the issuance of GX Economy Transition Bonds worth JPY 20 trillion.
• India's National Green Hydrogen Mission aims for a production capacity of at least 5 million metric tonnes per annum by 2030, requiring an estimated $96 billion in total investments.
• The United Arab Emirates aims for 30% clean energy capacity by 2030, increasing to 35% by 2035, and is targeting a reduction of emissions in hard-to-abate sectors by 25% using low-carbon hydrogen by 2031.
• South Africa's Just Energy Transition Investment Plan, signed at COP26, allocates $8.5 billion for decarbonization, with 81% ($6.9 billion) dedicated to electricity infrastructure such as coal decommissioning and new solar, wind, and hydro projects.

APA

World Economic Forum (2023). Transitioning Industrial Clusters towards Net Zero. https://www3.weforum.org/docs/WEF_Transitioning_Industrial_Clusters_towards_Net_Zero_2023.pdf

Chicago

World Economic Forum. Transitioning Industrial Clusters towards Net Zero. 2023. https://www3.weforum.org/docs/WEF_Transitioning_Industrial_Clusters_towards_Net_Zero_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Transitioning Industrial Clusters towards Net Zero |date=November 2023 |url=https://www3.weforum.org/docs/WEF_Transitioning_Industrial_Clusters_towards_Net_Zero_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023transitioning, author = {{World Economic Forum}}, title = {{Transitioning Industrial Clusters towards Net Zero}}, institution = {World Economic Forum}, year = {2023}, month = nov, url = {https://www3.weforum.org/docs/WEF_Transitioning_Industrial_Clusters_towards_Net_Zero_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }