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

Key enablers and barriers to change

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.