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This research paper uses Sweden as a case study to investigate if financing acts as a significant barrier to radical emission reductions in energy-intensive industrial sectors.

This thought piece examines the financial barriers and business cases for mobilizing investments in low-carbon industrial production within the Global South, highlighting the need for policy interventions, innovative business models, and custom solutions to address risks that are more complex than those found in the renewable energy sector.

The policy brief argues that the 2020s represent a critical window for International Finance Institutions (IFIs) to prevent emerging economies—particularly India, Nigeria, Pakistan, and Indonesia—from locking in high-carbon steel capacity. It proposes five intervention areas: providing policy knowledge, facilitating green hydrogen roadmaps, de-risking first-mover investments (including SMEs), utilizing green procurement in IFI operations, and scaling scrap-based circular production to reach a target of 50% of global output.