Industrial decarbonization is critical to achieving net-zero emission targets. Effective decarbonization pathways demand swift action from industry stakeholders and governments worldwide. The OECD offers data-driven, factual analyses and policy recommendations to assist governments and enterprises in this crucial transition to net zero.
An energy sector transition to net-zero CO2 emissions by 2070, depicted in the Sustainable Development Scenario, demands a radical technological transformation of the energy sector. Energy efficiency and renewable energy are major pillars, but additional technologies are needed for net-zero emissions.
Reaching Net-zero Goals is Impossible without Decarbonizing the Industry
Reaching net zero across industry extends beyond simply translating climate objectives into decarbonization pathways. It presents a comprehensive transformation encompassing labor and skills, research and development (R&D), and finance. OECD analysis highlights the need for an industry perspective to achieve this goal. This approach requires consideration of the specificities of industries across countries, engagement with stakeholders, and awareness of the diversity of circumstances. It also highlights the growing need for inclusive transition to meet these objectives.
Read more: The Rise of Eco-Friendly Transport in 2025: From EVs to Hyperloop
-
Energy Transformations for Net-zero Emissions
No single fuel or technology can help the entire energy sector achieve net-zero CO2 emissions. Success relies on a wide range of fuels and technologies tailored to individual parts of the energy sector as well as to country-specific circumstances. Net-zero CO2 emissions demand a fundamental change in how we produce and use energy. At net-zero emissions, low-carbon electricity, bioenergy, hydrogen, and hydrogen-based fuels deliver more than 70% of final energy needs, about the same share currently provided by fossil fuels.
-
Tackling Carbon Intensity
Zero-carbon is a journey that requires bold moves and breakthrough technologies. Businesses need to chart a path to low-carbon fuels and collaborate to develop and deliver industry-leading technology for point-source carbon capture. Additionally, they need to redefine their framework to provide safe and reliable carbon-free solutions to their consumers.
Transitioning to net-zero emissions is a significant task that requires big changes across manufacturing, consumption, and traveling, along with major transformations across key industries. Let's explore some of the advanced technologies paving the way forward.
-
Smart Grids
The ideal future energy setup features high consumption levels balanced with sustainability. Progress in energy generation and control is the key to making intense yet eco-friendly solutions accessible. A focused vision on maximized efficiency will help bring energy production closer to users and minimize ecological harm. With expanding clean power, supervising networks becomes increasingly critical; intelligent grids will help balance supply and demand, training industries for virtual power stations.
With clean energy growing, opportunities are emerging for groundbreaking ideas such as carbon capture and regenerative farming. Embedding these energy-consuming inventions in clean platforms will enable realistic, resilient answers for upcoming ages. It is all about pairing consumption with responsible care for the planet. The future embodies clever and amplified energy habits.
Read more: Anti-Greenwashing Strategies for 2025: How can Companies Maintain Trust with Authentic ESG Claims?
-
Carbon Avoidance
Some of the most effective clean technologies deal with carbon avoidance to produce industrial items like electricity, cement, steel, and hydrogen. Instead of carbon capture and storage, these solutions help replace old oil and combustion systems with electric ones, enabling businesses to operate on zero-carbon resources.
Carbon avoidance helps cut emissions at the source by scrutinizing alternative energy sources and managing waste. Compared to carbon removal, it cuts added costs, water use, energy, and carbon sequestration issues, including limited storage capacity. Carbon avoidance leads to lasting advancements and drives technological developments. Government bodies and investors need to prioritize carbon avoidance to bring environmental gains and strengthen the tech frame for a sustainable future.
Focusing on carbon capture and prevention is crucial. However, backing carbon avoidance should be prioritized. Concentrated efforts will help promote immediate positive effects and foster robust tech ecosystems.
-
Green Hydrogen
Steelmaking releases almost 5% of the EU's annual carbon dioxide, making it an immediate target for reducing emissions. Traditional steel production burns fossil fuels to remove oxygen from iron ore and heat scrap steel. This leads to the release of a lot of CO2s. While the EU steel industry has tried to lessen emissions by being more energy efficient and raising recycling rates, they still require bigger changes to meet net-zero carbon goals.
-
Micro-gasification and Wood Recycling
Wood waste, such as pallets, dry biological waste, and solid fuel - can be converted into heat and electricity using micro-gasification. These materials can generate energy, enabling businesses to save up to 40% on energy costs and reduce CO2 emissions by 30%-50%. Recycling wood waste on-site helps remove the need for transportation disposal.
In the construction sector, wood can be recycled to create alternative insulation. Wood fiber insulation includes processing leftover wooden debris, such as sawmill shavings and wood chips, into a coherent substance. Manufacturers use harmless binders to join wood pieces into homogeneous boards suitable for insulating houses and businesses. Using abundant industrial waste stock encourages sustainable practices and broadens product usage, keeping surplus raw materials out of landfills.
Read more: Unlocking the Potential of Carbon Markets in 2025: Challenges and Opportunities
-
Carbon Capture
Carbon capture catches CO2 from power plants and factories before it is emitted into the atmosphere. This powerful tool helps cut emissions caused by power generation in the industry, which are the two major contributors to global greenhouse gases. Capturing the CO2 helps improve oil extraction efficiency and safely store it underground. Carbon capture helps balance and protect nature and maintain productive industries amidst the growing human-induced climate changes.
Carbon capture works with renewable energy sources, offering reliable backup and smoother integration. It also supports wide-ranging industries such as power generation, cement making, and steel production. Due to its vast applicability and effectiveness, carbon capture has emerged as a dynamic response addressing modern environmental challenges.
Encouraging a Quick Change Towards Net-Zero
Incorporating clearly defined rules is critical for big infrastructure projects and new business models for net-zero emissions. Governments need to set ambitious net-zero goals to guide companies.
- Fast testing of new tech, such as hydrogen and large-scale carbon capture, will facilitate fast innovation. Close coordination across sectors will help install complex systems and gain public trust in new advancements.
- Combining green and digital trends will help accelerate innovation. Integrating advancements in energy efficiency and clean transportation across digital services will enhance user convenience and accessibility.
- Implementing new tech successfully needs supportive steps to drive commercialization. Combining required targets and market-focused strategies will be helpful in rapidly introducing fresh tech and services.
Successful innovation is not just about integrating new tech. Strategists must develop targeted innovation policies, identify game-changing innovations with excellent carbon-reducing abilities, promote teamwork across companies and industries, and leverage existing industrial skills.
Read more: The Green Consumer: Meeting the Demand for Sustainable Products
The Road Ahead to Net-Zero Emissions
Achieving net-zero CO2 emissions requires a versatile set of fuels and technologies tailored to distinct energy sectors and regional conditions. Policymakers and stakeholders need to consider multifaceted approaches, incorporating proven and emerging solutions for global sustainability.
A leader in ESG Services, SG Analytics offers bespoke sustainability consulting services and research support for informed decision-making. Contact us today if you are in search of an efficient ESG (Environmental, Social, and Governance) integration and management solution provider to boost your sustainable performance.
About SG Analytics
SG Analytics (SGA) is an industry-leading global data solutions firm providing data-centric research and contextual analytics services to its clients, including Fortune 500 companies across BFSI, Technology, Media & Entertainment, and Healthcare sectors. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company with a team of over 1200 employees and a presence across the U.S.A., the UK, Switzerland, Poland, and India.
Apart from being recognized by reputed firms such as Gartner, Everest Group, and ISG, SGA has been featured in the elite Deloitte Technology Fast 50 India 2023 and APAC 2024 High Growth Companies by the Financial Times & Statista.
