Search Climate Insights Directory

The report identifies four key investment opportunities for hydrogen in Latin America: green steel, green hydrogen production via electrolysis, green chemicals (methanol, ammonia, and fertilisers), and heavy-duty mining vehicles in remote locations. It argues that while net-zero models project hydrogen's share of final energy consumption at 3-20% by 2050, the region must more than double its planned electrolysis capacity by 2030 to align with 1.5-compatible scenarios. Success depends on policy signals, including carbon pricing and certification schemes, to attract international finance and avoid carbon lock-in.

The briefing outlines six trends for financial institutions in 2023: the rise of short-term transition plans, political backlash against ESG investing, the growth of renewables over plateauing fossil fuels, the need for climate upskilling of employees, increased regulatory scrutiny on greenwashing, and the shift toward using transition-relevant data for portfolio steering.

The Corporate Climate Stocktake 2023 reveals that while clean technology adoption is accelerating in sectors like power and road transport, systemic barriers—including infrastructure gaps, high 'green premiums', and workforce shortages—persist. The report argues that national emissions targets alone are insufficient and calls for multilateral coordination of industrial policy and sector-specific strategies to drive the diffusion of clean technologies.

The Inflation Reduction Act commits $369 billion to energy and climate initiatives to decarbonize the US economy and secure clean energy supply chains. Key measures include tax credits for electric vehicles, residential energy efficiency, and green hydrogen, alongside funding for urban forestry and carbon capture. The legislation targets a reduction in energy costs for households, the revitalization of former fossil fuel communities, and the acceleration of low-carbon industrial production in sectors like steel and cement.

The report argues that green hydrogen is essential for India to decarbonize hard-to-abate sectors like refining and steel, potentially meeting 94% of its 2050 hydrogen demand. It projects that this transition could abate 3.6 gigatons of CO2 and save up to $358 billion in energy imports by 2050, provided that policy supports, industrial clusters, and export markets are developed.

Coal producers in the US and Canada plan to invest $4.8 billion USD in 15 new metallurgical coal mines to produce 38 million tonnes annually for export, primarily to Asia Pacific markets. However, Global Energy Monitor argues these projects face high risks of economic and regulatory stranding. The global steel industry is under pressure to shift from coal-based blast furnace-basic oxygen furnace (BF-BOF) processes to lower-emissions alternatives like electric arc furnaces (EAF) and direct reduced iron (DRI) to meet net-zero targets. Major importers such as China, Japan, South Korea, and India have committed to carbon reduction, while domestic steel production in the US and Canada is already declining or transitioning away from coal. Furthermore, existing reserves in North America are sufficient to sustain current production levels until at least 2032, making new capacity largely unnecessary.

The document analyzes the EU's Carbon Border Adjustment Mechanism (CBAM) as a shift in climate policy toward trade and economic levers. It highlights the growth of carbon pricing globally, including the EU ETS and China's national ETS, and suggests that COP26 should be used to establish a 'green window' for preferential treatment of green goods and a mechanism to allocate CBAM revenues to vulnerable countries to ensure a just transition.

The document highlights that steelmaking is a highly emission-intensive process, contributing approximately 8% of global CO2 emissions annually. It argues that reducing these emissions is essential for achieving net-zero by 2050 and meeting Paris Agreement commitments, suggesting that G7 nations should lead international cooperation to establish the groundwork for a global industrial transition.

The report identifies five key technical solutions for net-zero—energy efficiency, electrification, low-carbon fuels, heavy industry decarbonization, and carbon removal—and five strategic recommendations for Canada, including the creation of industry consortia, Indigenous leadership, a whole-of-government approach, a just transition for workers, and a transparent framework for carbon offsets.

The authors contend that while corporate pledges to reduce emissions are increasing, the decarbonization of heavy industry—which accounts for approximately 18% of global carbon emissions—requires significant government funding and regulatory support. They highlight the 'Global Framework Principles for Decarbonizing Heavy Industry' as a tool to coordinate these efforts and criticize the gap between the climate rhetoric and actual policy actions of leaders in the US, China, Japan, and India.

The briefing argues that achieving a 1.5°C future requires substantial reductions in absolute energy use, which can be achieved through incremental gains, technological breakthroughs, and systems-level design. It contends that traditional energy models, which rely on extrapolating past supply, systematically underestimate the potential of efficiency. Using Tesla as a case study, the document demonstrates how integrated design across the supply chain can drastically reduce costs and resource use. It recommends that businesses and policymakers move toward service-oriented models and innovate across supply chains to avoid stranded assets and capture new economic opportunities.

The paper examines the 'valley of death' in industrial innovation, specifically for the HYBRIT initiative's transition to fossil-free steel. It compares two hypothetical demonstration plant scales: a 'small' option (200,000 t/annum) and a 'large' option (800,000 t/annum). The authors argue that a larger plant is preferable because it better addresses non-technical risks such as supply chain coordination, grid integration, and business model validation, despite higher capital costs and regulatory hurdles regarding permitting.

The report analyzes the HYBRIT process, which replaces coal with hydrogen for the direct reduction of iron ore combined with an electric arc furnace to create fossil-free steel. While technically feasible and potentially cost-competitive depending on electricity and carbon prices, the transition faces systemic barriers including high investment risks, the need for large-scale electrolysis infrastructure, and the risk of carbon leakage in a globally competitive market.

Africa possesses significant critical minerals (30% of global reserves) and solar resources (60% of global resources), yet contributes only 2% of global manufacturing value added. The document asserts that green industrialization requires systems-level policy coordination, treating finance as industrial policy, and utilizing Digital Public Infrastructure (DPI) to improve competitiveness. It highlights successful examples, such as South Africa's REIPPPP attracting over $14 billion in private investment and Morocco's $32.5 billion in approved green ammonia, steel, and fuel projects. With energy demand projected to increase by one-third by 2030, the text emphasizes the need to shift from exporting raw materials to domestic processing and manufacturing to generate more jobs and long-term value.

The document asserts that Germany possesses the necessary technological innovations to combat climate change and reduce dependence on Russian energy, but lacks the scale for implementation. It highlights that climate tech startups, particularly those focused on hardware for heavy industry (steel and cement) and sustainable fuels, are key to this transition. To increase the number of these startups hundredfold, the author proposes six measures: implementing Carbon Contracts for Difference (CCfDs), adopting Green Public Procurement (GPP) for building materials, focusing public funds like the Deep Tech Future Fund on climate tech, streamlining research-to-startup guidelines at universities, reducing bureaucracy, and expanding 'living labs' for scaling innovations.

The document advocates for a strategic shift in Germany to leverage its existing research and development in climate technology to end dependence on Russian energy. It highlights that while Germany possesses many necessary technological solutions, they have not been consistently implemented. The author proposes six specific policy measures to scale Climate Tech start-ups, including the use of climate protection contracts, green public procurement for construction materials, and the reform of university spin-off practices to accelerate the transition to a sustainable economy.

South Africa's Critical Minerals and Metals Strategy aims to maximise the economic value of its vast mineral reserves—including PGMs, manganese, and vanadium—by shifting from raw ore exports to local beneficiation and high-tech manufacturing. The strategy identifies a specific list of high, moderate-to-high, and moderate criticality minerals and proposes six pillars of intervention: geoscience mapping, value addition, R&D, infrastructure/energy security, financial instruments, and regulatory harmonisation. It emphasizes the need to overcome domestic bottlenecks in energy and logistics, foster regional integration within Africa, and navigate geopolitical tensions, particularly China's dominance in the supply chain, to secure a role in the global green energy transition.

The Financing Steel Decarbonization (FSD) instrument is designed to mobilize private finance for the adoption of commercially available and pre-commercial low-carbon technologies in India's steel sector. It consists of two entities: the Steel Decarbonization Financing Facility (SDF), a blended debt fund, and the Steel Decarbonization Initiative (SDI), a service provider for project implementation. Over five years, FSD intends to deploy nearly USD 1 billion to mobilize an additional USD 3.4 billion in private investment, targeting a 25% reduction in emission intensity for approximately 20 MTPA of capacity.

The report investigates the impact of a transition to a green hydrogen economy on TVET-level employment in South Africa, contrasting domestic development with international export opportunities. It identifies key sectors for skill development—including chemicals, electrical machinery, and PGM mining—and argues that while GHE jobs are expected to grow significantly after 2030, the TVET system must address structural gaps and develop specialized curricula in fuel cell and electrolyser manufacturing to support a just transition for workers in coal and refining.

The policy brief highlights a critical window in the 2020s for emerging economies to leapfrog to green steel production, as these regions are expected to see the largest increases in steel capacity by 2030. It proposes five ways IFIs can intervene: acting as knowledge partners for policy frameworks, supporting green hydrogen roadmaps, de-risking investments for first movers and SMEs, utilizing green procurement in their own operations, and scaling up scrap-based secondary steel production and circular business models.