World Economic Forum publishes first edition of the Net-Zero Industry Tracker report
The report highlights the key challenges industries face to enable a net-zero world by 2050, and finds decarbonization of industries must pick up pace rapidly as demand continues to grow for industrial products.
5 August 2022
On the 28 July 2022 the World Economic Forum released the first edition of a report on the state of the net-zero transition in key industrial sectors, the Net-Zero Industry Tracker 2022. The report focuses on six key industrial sectors that together make up approximately 80% of Industrial emissions – Aluminium, Ammonia, Steel, Concrete, Oil, and Natural Gas.
The report highlights the need to fully understand the scope and scale of the challenge for these sectors and identifies a significant gap versus the pace of decarbonization necessary to achieve net-zero goals to limit global warming to 1.5C by 2050. The urgency for industrial decarbonization is reinforced by high energy prices and energy supply chain disruptions.
The report notes that Aluminium benefits from a sizeable immediate decarbonization opportunity: low-carbon power. Decarbonizing electricity already provides an immediate option to eliminate most sectoral emissions; the potential is even more significant with the addition of electric boilers and inert anodes.
The report estimates that aluminium decarbonization would require a minimum investment of $510 billion in decarbonized power, clean hydrogen capacity and CO2 transport and storage infrastructure.
“With the aluminium sector requiring absolute emissions reduction of over 90% by mid-century, while meeting continued demand for the metal (a critical enabler of the energy transition), it is vital that action is urgently taken to decarbonise the industry and bring system-wide change to maximise aluminium recycling. This report is a sobering reminder that change is not happening at the pace required to deliver a 1.5 degree limited world – a commitment to which is embodied in ASI’s revised Performance Standard Principle 5.”
– Chris Bayliss, ASI Director of Standards
The report emphasizes five priorities for the aluminium sector
- Promote and further expand aluminium recycling networks.
- Boost the number of low-emission projects to accelerate the learning curve, drive costs down and bring forward the commercial readiness of clean technologies.
- Develop the low-emission power capacity, clean hydrogen production and CO2 transport and storage infrastructure required to enable low emission aluminium production.
- Multiply demand signals for green aluminium to incentivize producers and investors to direct capital towards low-emission production assets.
- Develop policies to support the four priorities above and strengthen the business case for low-emission aluminium production.
GHG Emissions disclosure and reductions in the ASI Performance Standard
The ASI Performance Standard V3 (2022) includes several criteria related to GHG Emissions, including Disclosure of GHG Emissions and Energy Use, Aluminium Smelter GHG Emissions Intensity, GHG Emissions Reduction Plans, and GHG Emissions Management.
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