In May 2022 the International Energy Agency (IEA)released a new report that outline 10 recommendations to accelerate the net zero transition of heavy industry sectors in G7 member countries by 2050.

According to the report the Heavy industry sector (steel, cement and chemicals) is responsible for more than 15% of coal use and about 10% of oil and gas use in G7 member countries (UK, USA, Canada, Japan, Germany, France, Italy &the EU). This makes the net zero transition in heavy industry an important pillar for reducing the reliance on fossil fuels in the G7.

However, the Industry is facing huge challenges in achieving net zero emissions. Some of the key obstacles mentioned in the report include much of the technology required still being in early phases of development, products of heavy industries such as steel being traded internationally with margins that are too slim to absorb elevated production costs and industry facilities being long-lived and capital intensive, locking in emissions inertia.

With this sector alone – accounting for around 6 gigatons (or around 70% of industrial emissions), reaching net zero emissions is impossible without a drastic reduction in the industry CO2 footprints. Even though the report states that commercially available technologies and strategies may not take the industry all the way, they are definitely a good place to start. With material efficiency and energy efficiency accounting for around 25% of emissions reductions by 2050,already existing digitalized solution such as ChainTraced, that allows for more visibility and traceability throughout the value chain, become an important contribution to reducing industrial emissions among others.

The report goes on to Outline 10 recommendations to decarbonize the Heavy industry by 2050 and place a great emphasis on two main areas. Firstly, for the G7 governments to implement toolbox of policies & financial mechanisms to initiate the industry transition. Second, setting a series of common guidelines of what constitutes Net-zero emission in the production of steel and cement.

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Austin Johnson

Solution Architect
Austin has previously worked as a Functional Consultant in a multinational IT company. Focus was to understand business requirements and deliver solutions with a lookout on easing client specific issues.