Photo by Alex Proimos via Flickr

Since industrial process emissions that result from chemical reactions cannot be eliminated by decarbonizing the energy supply, new solutions and production methods are critically needed.

In most sectors, greenhouse gas (GHG) emissions come from the combustion of fossil fuels. In these cases, electrification and the direct use of renewable energy are prime solutions for decarbonization. Even though eliminating energy-related emissions will make an important contribution, process emissions resulting from chemical reactions in various industrial processes make up a substantial part and will also need to be tackled.

Industrial process emissions cannot be tackled by decarbonizing the energy supply and need new solutions and methods

Many industrial subsectors involve the chemical processing of raw materials, such as iron ore or limestone. That process typically releases carbon from the raw material into the atmosphere, resulting in carbon dioxide (CO2) emissions. These emissions, commonly referred to as process emissions, cannot be eliminated by decarbonizing the energy supply.

Cement, steel and chemicals are responsible for about 70% of industrial CO2 emissions. A significant share of those emissions are process emissions, and plastics production is one of the major emissions sources in the chemicals industry. Thus, the adoption of alternative methods to create cement, steel and plastics while lowering industry’s climate impact is crucial. Pathways toward this goal vary depending on the product and all are in different stages of technological development.

For some industrial processes, such as steel production, switching to carbon-free feedstocks like green hydrogen is a viable solution. For other processes, such as cement production, few scalable options exist today. Carbon capture and storage (CCS) is likely to play an important role. CCS could also become crucial for the decarbonization of industrial plants with long lifespans, or those that are located in geographies with limited ability to produce or obtain carbon-free feedstocks.

Most solutions to mitigate process emissions need to be commercialized and coupled with the development of appropriate infrastructure

Most of the novel technologies that eliminate process emissions are still early in their development and will need accelerated scaling and commercialization. However, their progress will depend on access to finance, effective policies and increased demand for low-carbon industrial products.

In addition to the adoption of novel technologies, the development of new infrastructure — for example, to transport and store captured carbon and green hydrogen — will be an important step. The supply of green hydrogen itself must be ensured while making it cost-competitive with fossil fuels and feedstocks.

Because the manufacture of steel and cement generate high levels of process emissions, it is important to monitor each industries’ progress in lowering these levels. Green hydrogen production must also be tracked, given its expected role in mitigating process emissions in industry.

Tracking progress on global outcomes

0Right Direction, On Track
0Right Direction, Off Track
3Right Direction, Well Off Track
0Right Direction, No Target
3Wrong Direction
1Insufficient Data
Cement
Well Off Track
i
Carbon intensity of cement
kgCO2/t cement
400450500550600650201220202030
365
Cement
Wrong Direction
i
CO2 emissions from cement production
MtCO2
8001k1.2k1.4k1.6k1.8k2k200020202030
Steel
Wrong Direction
i
Carbon intensity of steel
kgCO2/t steel
1.4k1.6k1.8k2k200720222030
1.34k
Steel
Wrong Direction
i
CO2 emissions from steel production
MtCO2
2.5k3k3.5k4k4.5k200720212030
Steel
Insufficient Data
i
Near-zero-emission ore-based steel

No publicly available data source was identified.

Learn moreLearn more about data gaps
Hydrogen
Well Off Track
i
Total installed electrolyzer capacity
GW
200400600800201520222030
850
Hydrogen
Well Off Track
i
Green hydrogen production
Mt
1020304050199020212030
58

Key enablers and barriers to change

Cement
i
Corporate R&D spending for cement

No publicly available data source was identified.

Learn moreLearn more about data gaps
Cement
i
Clinker-to-cement ratio
%
7678808284199020220
Cement
i
Alternative fuels for thermal energy in cement production
%
51015199020190
Cement
i
Planned low-carbon cement projects
2345678201820230
Cement
i
Production of novel low-carbon cement types

No publicly available data source was identified.

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Cement
i
Cost of producing decarbonized cement

No publicly available data source was identified.

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Cement
i
Announced low-carbon cement projects
102030201520220
Cement
i
Cement production under a green production policy

No publicly available data source was identified.

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Cement
i
Cement companies setting net-zero targets

No publicly available data source was identified.

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Cement
i
Cement production covered by a net-zero roadmap

No publicly available data source was identified.

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Cement
i
Construction companies setting SBTs for scope 3 emissions
Number of companies
0202120220
Cement
i
Jobs in RDI for low-carbon cement

No publicly available data source was identified.

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Steel
i
Corporate R&D spending for low-carbon steel

No publicly available data source was identified.

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Steel
i
Cost of producing decarbonized steel
USD/tonne of crude steel produced

Data is available.

Steel
i
New installed capacity of steel production
Mtpa
20406080201020220
Steel
i
Secondary steel in total steel production
%
2020.220.420.620.821201820210
Steel
i
Announced low-carbon steel projects
Number of projects
1020304050201120220
Steel
i
Planned low-carbon steel projects
Number of projects
20253035404550202320300
Steel
i
Steel companies committing to zero-emission steel
Number of companies
510152025201920230
Steel
i
Steel production covered by national net-zero roadmaps

No publicly available data source was identified.

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Steel
i
Automotive companies setting SBTs for scope 3 emissions
Number of companies
0202220230
Steel
i
Jobs in RDI for low-carbon steel

No publicly available data source was identified.

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Hydrogen
i
R&D spending on green hydrogen
USD
100M200M300M400M500M600M201920220
Hydrogen
i
Cost of producing hydrogen
$/kg

Data is available.

Hydrogen
i
Size of electrolyzer plants
MW
24681012201820220
Hydrogen
i
Governments with published hydrogen strategies
Number of governments
1020304050201720240
Hydrogen
i
Companies committing to green hydrogen deployment
Number of companies
343638404244202120230
Hydrogen
i
Green hydrogen projects planned
Number of projects
200300400500600700800202320400
Hydrogen
i
Jobs in green hydrogen

No publicly available data source was identified.

Learn moreLearn more about data gaps

Data challenges

Centralized and comprehensive data on commercializing new solutions for zero-carbon cement, steel and plastics and the changes needed in policy and investment to accelerate their scale-up is limited. That is partly because the shift is reliant on emerging technologies, and partly because insufficient data is being collected and publicly published in a comprehensive manner. Some of the data shown throughout the electrification of industry shift is based on manual aggregation across many sources and only represents what information is publicly available, so may not be fully representative of everything that is happening on the ground.

Other shift Other shifts needed to transform the system

Reduce demand for cement, steel and plastics

To curb rising demand for industrial products that increase greenhouse gas emissions, we need to mainstream material efficiency and circular economy principles in climate policies, alongside adopting regulations incentivizing efficient resource use.

Improve industrial energy efficiency

Energy efficiency can power net-zero climate goals — it has the potential to mitigate over 40% of energy-related greenhouse gas emissions by 2040 across all sectors.

Electrify industry

The industry sector is highly energy intensive, as many processes are reliant on heat. Sourcing this energy from electricity, particularly renewable sources, can substantially mitigate greenhouse gas emissions.

Reduce methane emissions from oil and gas operations as they are phased down

Methane is an extremely potent climate pollutant. In the short term, it’s much more potent than carbon dioxide, which is the most common greenhouse gas. To cut methane emissions in oil and gas operations, we need to adopt better monitoring techniques, take action to end flaring and venting, and identify and fix methane leaks.