A total investment of $13.5 trillion will be required to facilitate the transition to a more sustainable and carbon-neutral future by 2050, particularly in the production, energy and transport sectors, the World Economic Forum said in a new report.
The Net-Zero Industry Tracker 2023, published in collaboration with Accenture, highlighted the progress towards net-zero emissions for eight industries – steel, cement, aluminum, ammonia, excluding other chemicals, oil and gas, aviation, shipping and trucking – which depend on fossil fuels for 90% of their energy demand.
The report comes after the United Nations called at COP28 for “dramatic climate action” to close an “emissions canyon”, outlining pathways to accelerate the decarbonisation of emission-intensive production, energy and transport industries.
Investments in clean power, clean hydrogen and infrastructure for carbon capture, utilisation and storage (CCUS) will be needed to accelerate industrial decarbonization across most sectors.
“Decarbonising these industrial and transport sectors, which emit 40% of global greenhouse gas emissions today, is essential to achieving net zero, especially as demand for industrial products and transport services will continue to be strong,” said Roberto Bocca, Head of Centre for Energy and Materials, World Economic Forum.
The report underscored the urgency for creating a robust enabling environment, including low-emissions technologies, infrastructure, demand for green products, policies and investments.
In addition to increasing capital expenditures to decarbonise existing industrial and transport asset bases, further investment is needed to build a clean-energy infrastructure, WEF said.
(Editing by Seban Scaria firstname.lastname@example.org )