Search Climate Insights Directory

The report evaluates transition planning among ASEAN companies in sectors like cement, steel, and chemicals against the Climate Bonds Initiative's 'Five Hallmarks' of a credibly transitioning company. It finds that while net-zero commitments are increasing, most plans are fragmented and lack the robust, costed, and science-based pathways necessary for a 1.5°C alignment. The document provides specific analysis of companies such as Siam Cement Group and PTT, and offers guidance on improving the credibility of sustainability-linked bonds (SLBs) by ensuring they include material emission scopes and absolute targets.

The document highlights that the steel industry contributes nearly 10 percent of global carbon emissions and 17 percent of China's emissions, positioning clean hydrogen-based steelmaking as a potential zero-carbon solution. It notes that while Europe provides government funding across various project stages, China focuses on high-level policies for R&D, alliances, and capacity replacement.

The report provides a comprehensive overview of Peru's sustainable finance landscape, detailing the growth of Green, Social, and Sustainability (VSS+) bonds. It highlights Peru's role as a regional pioneer, starting with the first green bond in Latin America in 2014, and examines the current market composition where sustainable bonds dominate. The document identifies significant investment gaps in infrastructure, water management, and low-carbon transport, while outlining a roadmap for growth involving key public and private stakeholders. It also addresses systemic barriers such as low market liquidity, currency risk, and the need for a national green taxonomy.

The document reports that despite China's climate goals, investment in high-carbon coal power and blast furnace steel capacity remains high. While renewable energy and electric arc furnace (EAF) investments are growing, the continued approval of coal plants and high-emission steel projects creates significant stranded asset risks. The report argues that power shortages in provinces like Sichuan are caused by rigid grid management and fuel costs rather than a lack of capacity, suggesting that further coal expansion is unnecessary if grid reforms are implemented.

Reclaim Finance argues that the Powering Past Coal Alliance's (PPCA) current Finance Principles allow members to continue supporting coal expansion. The organization recommends updating the global phase-out deadline to 2040, removing the term "unabated" to ban all coal power, expanding the scope to include the entire coal value chain (including mining), banning general financial services to companies planning coal expansion, and implementing a sanction mechanism to exclude non-complying members.

The guide defines demand signal initiatives as campaigns and alliances that commit companies and public bodies to purchasing net-zero products and services, thereby incentivizing supply-side investment. It outlines a five-step process for setting up these initiatives, identifies key target audiences across the value chain, and provides a case study on the steel industry and a list of existing global initiatives such as SteelZero and the First Movers Coalition.

The Clean Air Task Force asserts that carbon capture and storage (CCS) is essential for decarbonising foundational industries like cement, iron, steel, and chemicals, which account for approximately one-fifth of total emissions. While some national initiatives exist in the UK, Denmark, Germany, the Netherlands, and Norway, the author argues that a centralized EU strategy is needed to resolve cross-border transport issues, close a projected €10 billion funding gap, and address a storage capacity deficit where available space by 2030 may only meet half of the captured CO2 volume. The proposed strategy would include setting milestone targets, developing strategically placed storage sites, and creating a regulatory platform for CO2 transport infrastructure.

The briefing outlines the political and structural challenges Brazil faces in achieving net-zero emissions, focusing on land use, agriculture, transport, carbon markets, waste management, and industry. It argues that climate policies must be aligned with national development and income generation to overcome weak governance and industry opposition. The report highlights specific opportunities for international funding, such as supporting biomethane, nature-based solutions in carbon markets, and technology transfer for industrial decarbonization and waste sorting.

The report finds that the global steel industry is not on track to meet IEA Net-zero 2050 targets, as the shift from carbon-intensive BF-BOF to cleaner EAF technology is too slow. Current capacity under construction is more heavily weighted toward BF-BOF than the existing operating fleet. Asia, particularly China and India, is the primary hotspot for new BF-BOF capacity. This trend creates a significant stranded asset risk estimated between 345 and 518 billion USD. Additionally, the report highlights that accounting for coal mine methane could increase the sector's reported emissions footprint by 27%.

The report finds that neither the scale of capital investment nor access to financing are primary obstacles to Sweden's green industrial transition. Instead, the most critical barriers are the lack of market demand for more expensive green products, insufficient infrastructure (particularly renewable electricity), and slow permitting processes. The authors recommend that policymakers focus on market formation through carbon pricing and the EU's Carbon Border Adjustment Mechanism (CBAM), while continuing direct support for R&D and demonstration projects through programs like Industriklivet.

The steel industry faces a conflict between growth outlooks and 1.5°C climate targets, requiring demand to peak between 2035 and 2040. Delaying decarbonization until 2030 would necessitate a 50% reduction in demand by 2050 to remain climate-aligned, posing a risk to primary steel production. To avoid this, the industry must invest in zero-carbon technologies like green hydrogen, with significant opportunities for producers in Australia, Brazil, and South Africa.

The report argues that while Europe has significant theoretical CO2 storage capacity, actual deployment is hindered by a funding gap, regulatory barriers to cross-border transport, and a lack of coordinated infrastructure. It recommends shifting from project-based funding to system-based approaches, implementing carbon contracts for difference (CCfDs), and establishing a market for low-carbon products. The authors call for a formal EU strategy to set milestone targets and coordinate the development of large-scale, open-access storage sites beyond the North Sea.

The policy brief contends that Germany cannot achieve climate neutrality by 2045 without carbon management technologies, including carbon capture and storage (CCS), direct air capture (DAC), and bioenergy with carbon capture and storage (BECCS). It highlights that current industrial emissions reductions are insufficient and that a lack of CO2 transport infrastructure and storage sites within Germany necessitates a strategy to connect to regional hubs in Northern Europe. The document further argues that carbon management is essential for decarbonizing the hydrogen economy—specifically through the use of blue hydrogen—and for producing the low-carbon industrial materials required for the renewable energy transition.

The document highlights the dependency of the European wind industry on steel, noting that turbines consist of at least 70% steel. It argues that while wind energy is critical for the EU's energy transition, the steel production process remains highly carbon-intensive, emitting 1.85 tonnes of CO2 per tonne of steel in 2020. Using the example of Dirostahl in Remscheid, the brief illustrates the technical and financial barriers to switching from fossil gas to hydrogen or carbon capture and storage (CCS), specifically citing a potential price increase of 700 to 800 Euro per tonne of steel if switching to renewable hydrogen. It calls for the development of hydrogen and CO2 pipeline infrastructure and the implementation of policy tools like Carbon Contracts for Difference to maintain industrial competitiveness during the transition.

The briefing assesses the failure of the EU ETS to reduce emissions in the steel sector, which accounts for 221 megatonnes of CO2 annually. It identifies flaws such as excessive free allowances and stagnant benchmarks—particularly for hot metal—that have led to flatlining emissions since 2012. The author proposes replacing free permits with a Carbon Border Adjustment Mechanism (CBAM) and increasing funding for the Innovation Fund to support zero-carbon technologies like hydrogen direct reduction.

India's buildings sector is a major source of CO2 emissions, with indirect 'embodied carbon' (EC) from material procurement and construction nearly tripling between 2000 and 2017. With India's total building space projected to more than double and its urbanization rate expected to reach 40% by 2030–31, the demand for energy-intensive materials like steel, cement, and bricks is set to rise sharply. The document highlights that while operational emissions are being addressed, EC emissions risk locking in high energy use for decades. It advocates for a whole-building life-cycle assessment approach and a national roadmap to transition toward low-carbon materials, suggesting that India could lead other developing economies in compatible economic expansion and emissions reduction.

The document argues that Carbon Capture and Storage (CCS) is essential for Germany to reach its 2045 climate neutrality goal, particularly for the cement, steel, and chemical industries. It calls for a government strategy that includes the development of CO2 transport infrastructure, the use of Carbon Contracts for Difference, and a legal declaration to the International Maritime Organization to enable cross-border CO2 transport.

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 report argues that current GHG accounting systems rely too heavily on approximations and are unsuitable for comparing scope 3 emissions between companies. To resolve this, RMI proposes a framework consisting of unified accounting principles that prioritize primary data, a technical architecture based on distributed ledger technology to track embodied carbon at the product level, and the creation of "digital twins" of carbon emissions to enable emissions to function as a unit of trade. This system aims to transform climate intelligence into actionable business intelligence and support the development of a global carbon market under Article 6 of the Paris Agreement.

The briefing outlines six insights for investors to drive net-zero transitions in the oil and gas, agricultural commodities, steel, and cement sectors. It emphasizes that while divestment is a common strategy, coordinated engagement to prevent new investments in polluting assets, promote sector-wide transitions, and influence value chains is more likely to achieve real-economy emission reductions. The authors suggest that investors should push for concrete actions, such as carbon capture projects in cement or production decreases in oil and gas, rather than relying solely on general emission trajectories.