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The document analyzes the 2026 State of the European Union address, emphasizing that while the EU has made progress in clean electricity, it now faces a critical 'delivery' phase. It argues for a diverse energy mix including clean firm power, the acceleration of grid expansion to resolve connection bottlenecks, and the use of the Industrial Decarbonisation Bank to move projects to final investment decisions. Additionally, it stresses the importance of maintaining strong methane regulations and creating lead markets for low-carbon products to ensure industrial competitiveness and energy security.

The policy brief examines the 'cross-chain' risks in the carbon capture and storage (CCS) value chain, where delays in transport or storage infrastructure leave industrial emitters facing a 'double burden': the cost of capture equipment and continued EU ETS payments for uncaptured emissions. It contrasts the EU's current funding gaps with the UK's 'CCS business models' and suggests the EU utilize ETS revenues or the proposed Industrial Decarbonisation Bank to provide financial safeguards during infrastructure outages.

Carbon Market Watch asserts that free allowances in the EU ETS have failed to drive decarbonisation, instead allowing heavy industry to generate profits while avoiding pollution costs. The organization criticizes the European Commission's revision proposal for extending free allocations and calls for a full phase-out by 2034 for CBAM sectors and a plan for all other sectors, insisting that any remaining subsidies be tied to proven investments in zero-carbon transformation and social safeguards.

The report analyzes four decarbonization pathways for California's cement sector, all incorporating carbon capture and storage (CCS) to address process emissions. Pathways involving limestone calcined clay cement (LC3) and alternative fuels (woody biomass or engineered municipal solid waste) demonstrate the lowest lifetime carbon abatement costs, around $100 per metric ton of CO2. In contrast, full electrification combined with CCS is the most expensive at $479 per metric ton. While all pathways significantly reduce emissions relative to a baseline, the report highlights that energy costs are the primary driver of lifetime expenses. Qualitatively, the transition to these technologies is expected to provide net air quality benefits by reducing SO2 and particulate matter, although amine-based CCS may slightly increase VOC emissions.

The report finds that while Poland has significant geological storage potential (estimated at 15 Gt) and industrial demand in hard-to-abate sectors like cement, the CCS sector remains pre-commercial due to regulatory uncertainty and a lack of revenue support. It identifies regulatory certainty and revenue adequacy as the most critical barriers to final investment decisions (FID). To address these, the report proposes a three-phase roadmap: establishing regulatory and financing foundations by 2027, initiating pre-commercial value chains by 2030, and expanding infrastructure for market scale-up thereafter. Key recommendations include adopting a national CCS strategy, implementing Carbon Contracts for Difference (CCfDs), and creating a digital 'one-stop shop' for permitting to align with Net Zero Industry Act (NZIA) requirements.

Mighty Earth is campaigning to accelerate the decarbonization of the automobile industry, targeting Hyundai Motors Corporation. The organization highlights the need for fully fossil-free steel and green hydrogen investments, while criticizing the environmental and human rights risks associated with Hyundai's global steel supply chain, including a planned facility in Louisiana and suppliers linked to abuses in Mexico.

The policy brief argues that the proposed €100 billion Industrial Decarbonisation Bank (IDB) must move beyond fragmented grants to a coordinated system of carbon contracts for difference (CCfDs), project development support, and shared infrastructure funding. It highlights a significant delivery gap in existing EU programs, noting that only 16 of 208 Innovation Fund grant agreements had entered operation by June 2025. To resolve this, the author recommends technology-neutral auctions with sector-specific caps, two-way CCfD settlements referenced to EU ETS prices, and the sequencing of infrastructure delivery to align with industrial final investment decisions (FID).

The briefing reports that a majority of citizens in several EU member states support requiring heavy industry to pay for CO2 emissions and favor investing carbon revenues into industrial decarbonisation over the continuation of free allowances. It highlights a contrast between public opinion and lobbying efforts by industry giants and certain member states to weaken EU ETS rules.

The Clean Air Task Force recommends that the EU increase its 2029 public procurement mandates for low-carbon steel to 50% and low-carbon concrete and mortar to 10%. It argues that the current IAA proposal is insufficient to drive investment and suggests expanding mandates to 100% by 2040. The report also proposes extending these requirements to private construction projects over 1000 m2 and private automotive fleets by 2032, while broadening the scope to include low-carbon plastics and fertilisers.

Geelen Counterflow developed an electric industrial dryer using heat pump technology to replace fossil gas burners in the production of pet kibble and fish feed. The technology utilizes a self-cleaning heat exchanger to recover waste heat and moisture. A 2022 installation at a Cargill-Ewos plant in Norway created the world's first zero-emissions fish feed factory, reducing energy use and running costs by 75% and eliminating 3,000 tons of annual CO2 emissions. The company has since expanded installations to China, South Korea, and Thailand, targeting markets where the 'spark ratio' between electricity and gas prices makes electrification financially viable.

SKF Group has fully electrified the heating and cooling systems at its Massa factory in Italy, replacing gas-fired boilers with reversible heat pumps. This transition, integrated with a digital monitoring system, has reduced operational energy demand and lowered costs, despite high electricity prices in Italy. The factory sources 100% of its electricity from renewable sources, utilizing a virtual power purchase agreement for a solar plant in Spain and Guarantees of Origin. This project is part of a broader SKF Group strategy that has seen similar electrification and decarbonization efforts across eleven other global factories.

The author contends that current unilateral green industrial strategies and carbon border adjustments create an inequitable trade environment that disadvantages developing countries. To resolve this, the paper proposes 'transition compacts': plurilateral, sector-specific agreements that link market access to verified emissions performance while making equity provisions, such as technology transfer and investment, legally binding rather than aspirational. Using examples like the failed Global Arrangement on Sustainable Steel and Aluminium (GASSA) and the Agreement on Climate Change, Trade and Sustainability (ACCTS), the text suggests that these compacts should be designed to be resilient to the withdrawal of major powers and focused on cooperative management of the energy transition.

The We Mean Business Coalition (WMBC) advocates for a coordinated EU framework to overcome barriers to electrification, such as high upfront costs and grid constraints. The coalition proposes a 50% electrification target by 2040 and suggests realigning financial incentives, modernising electricity grids, and mobilising public finance to de-risk private investment in clean energy technologies.

The report proposes a tripartite contracting model for Europe, where a state-backed intermediary connects clean energy suppliers and industrial consumers. This mechanism aims to solve structural barriers in bilateral Power Purchase Agreements (PPAs), such as creditworthiness requirements for SMEs and the mismatch between variable renewable generation and industrial baseload demand. By pooling diverse technologies—including renewables, storage, and clean firm capacity—the intermediary can offer 24/7 clean power products and absorb counterparty risk. The document outlines an implementation roadmap involving the European Commission and Member States, emphasizing the need for harmonized Guarantees of Origin, improved two-sided Contracts for Difference (CfDs) design, and integrated grid planning.

The report examines how Vertical Climate and Environment Funds (VCEFs)—specifically the Green Climate Fund (GCF), Global Environment Facility (GEF), Climate Investment Funds (CIF), and Adaptation Fund (AF)—can better mobilize private climate finance for emerging markets and developing economies (EMDEs). It identifies three primary opportunities: implementing sequential financing to move projects from ideation to scale, increasing collaboration with the global network of public development banks (PDBs), and aligning funding with country-driven investment plans. The document emphasizes the need to address the high cost of capital in EMDEs to enable greater real-economy transformation as public climate finance becomes more constrained.

The report argues that Canada's historical advantage of low-cost electricity is at risk due to outdated grid infrastructure, cautious energy planning, and policy instability. By comparing Alberta, British Columbia, Ontario, and Quebec with international peers like Texas and Germany, the analysis finds that Canadian grids often under-plan for industrial growth and lag in flexibility and transmission capacity. The document recommends that the federal government support interprovincial coordination, provide targeted funding for grid expansion, ensure a stable Clean Electricity Regulation, and prioritize grid flexibility to maintain industrial competitiveness.

The EU's Carbon Border Adjustment Mechanism (CBAM) transitioned from a reporting-only phase to a definitive period on January 1, 2026, introducing financial liabilities for importers of iron, steel, aluminum, cement, fertilizers, electricity, and hydrogen. Exporters must now provide verified actual emissions data to avoid high default values, which include annual markups of +10% in 2026, +20% in 2027, and +30% from 2028 onward. Financial liability is calculated based on embedded emissions, adjusted by a Free Allocation Adjustment (FAA) that phases out by 2034, and monetized through CBAM certificates linked to EU ETS prices. The guide emphasizes that verified actual emissions and documentation of carbon prices paid in the country of origin are critical for maintaining competitiveness and reducing costs.

The document addresses the risk of 'over-inflated pressure from minority laggard interests' in EU policy debates, noting that trade association positions often do not reflect their broader membership. It highlights a growing trend of companies bypassing traditional associations to support climate-aligned policies through initiatives like Corporate Leaders Group Europe. The guide introduces the RPE Framework and tailored EU guidance to help businesses align their advocacy with their climate commitments, noting that 94% of business leaders in 2025 viewed stable net-zero policies as critical to investment.

The Clean Air Task Force (CATF) reports on the 2026 Virginia legislative session, highlighting progress in diversifying the electricity portfolio, modernizing procurement, and improving infrastructure siting. Key achievements include the state's planned reentry into the Regional Greenhouse Gas Initiative (RGGI) by July 1, 2026, and the creation of a Chief Energy Officer position. CATF argues that while these targeted improvements are constructive, Virginia must further modernize its Clean Economy Act (VCEA) to better integrate clean firm resources and manage rising electricity demand from data centers and manufacturing.

The report examines the potential for the European Union to use local content requirements (LCRs) in public procurement to drive decarbonization and industrial resilience. It analyzes LCR frameworks in China, India, and Canada, noting that while these tools can create predictable demand for low-carbon industries, they risk increasing costs, reducing competition, and triggering trade retaliation. The authors argue that LCRs should only be used in strategic sectors where specific preconditions—such as high market leverage and strong climate gains—are met, and must be tied to ambitious, performance-based environmental criteria rather than origin alone. The report specifically evaluates the steel, cement, and clean technology sectors, concluding that while LCRs can support resilience, they must be carefully designed to avoid protecting high-emission producers or hindering the import of essential green intermediate goods.