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1、Net-Zero Industry Tracker 2024 EditionI N S I G H T R E P O R TD E C E M B E R 2 0 2 4In collaboration with AccentureImages:Getty ImagesDisclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclu

2、sions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.2024 World Economic Forum.All rights

3、 reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.ContentsForeword 3Executive summary 41 Context 62 Framework 93 Cross-sector findings 133.1 Performance 143.2 Read

4、iness 193.3 Key priorities 394 Aviation industry net-zero tracker 405 Shipping industry net-zero tracker 516 Trucking industry net-zero tracker 627 Steel industry net-zero tracker 738 Cement industry net-zero tracker 849 Aluminium industry net-zero tracker 9510 Primary chemicals industry net-zero tr

5、acker 10611 Oil and gas industry net-zero tracker 118Conclusion 130Appendices 131A1 Abbreviations and acronyms 131A2 Readiness criteria 133A3 Data sources 134Contributors 135Endnotes 137Net-Zero Industry Tracker:2024 Edition2ForewordThe energy transition is rapidly progressing in areas where technol

6、ogies,supportive policies and the business case for investments align.However,to achieve a net-zero future,faster advancements across all sectors and countries are required,particularly in hard-to-abate industries such as steel,aluminium,cement,primary chemicals,oil and gas,aviation,shipping and tru

7、cking.These sectors play an important role in our economies,with heavy industry alone contributing to around 30%of global gross domestic product(GDP)1.Significantly reducing emissions in these sectors present unique physical,macroeconomic,and business challenges.The World Economic Forums Net Zero In

8、dustry Tracker 2024 offers a data-driven assessment of energy transition progress in these eight challenging sectors,which collectively account for around 40%of global GHG emissions.These sectors are vital to the global economy as demand for heavy industry and heavy transport sectors is projected to

9、 rise by more than 60%on average by 2050.This publication marks the third edition of the report,and we are encouraged to see some progress.We have observed a reduction in average emissions intensity of 4.1%in the last five years(2019-2023),with an accelerated reduction in the last year(2022-2023)of

10、1.2%.Nevertheless,the current pace of progress is insufficient to meet net-zero emissions scenarios.As the recent report by the United Nations Environment Programme highlights,current promises and commitments place us“on track for best-case global warming of 2.6C this century”.2 This underscores the

11、 urgent need to accelerate energy transition efforts.The physical challenges of emissions reduction have been further compounded by macroeconomic and geopolitical conditions.Higher interest rates strain investments in energy transition technologies,especially given most of these sectors operate in h

12、ighly competitive profit margin environments.Geopolitical tensions and conflicts have led to an increase in energy prices,leading to some nations prioritizing energy security and national industrial protectionism over sustainability.Additionally,trade restrictions and tariffs increase the cost of pr

13、oducts with already-high green premiums,such as green steel and aluminium.However,technology,particularly artificial intelligence(AI),shows significant potential to drive progress.Over the past year,AI has enhanced the speed and economics of capital projects,improved asset management,optimized energ

14、y efficiency and enabled more accurate emissions tracking.The World Economic Forum,with support from Accenture,seeks to identify key barriers in these sectors,align stakeholders on essential actions,and promote collaboration to accelerate progress.These sectors cannot achieve their targets in isolat

15、ion and require support from the broader ecosystem,particularly for capital deployment,as our report highlights that around 57%of the necessary investments must come from sources outside of these sectors.The majority of these investments will be needed to build infrastructure for clean power,clean f

16、uels,and carbon capture,utilization and storage(CCUS).The most challenging aspects of the transition necessitate close public-private collaboration.The Forum embraces this multistakeholder approach and is working to drive action with leading governmental bodies such as Clean Energy Ministerial and G

17、20,as well as multilateral initiatives like the First Movers Coalition(FMC),Transforming Industrial Clusters,Mission Possible Partnership(MPP)and the Industrial Transition Accelerator(ITA).Only by advancing this collaborative spirit can we enable a more effective approach to the energy transition,en

18、suring that all sectors contribute to a sustainable future.Muqsit Ashraf Group Chief Executive,Accenture StrategyRoberto Bocca Head,Centre for Energy and Materials;Member,ExecutiveCommittee,WorldEconomic ForumNet-Zero Industry Tracker:2024 Edition December 2024Net-Zero Industry Tracker:2024 Edition3

19、Executive summaryThis is the first time since the launch of the Net Zero Industry Tracker report that there has been a reduction in absolute emissions of hard-to-abate sectors in scope.Sectors have reduced absolute emissions by 0.9%between 2022 and 2023,compared to total global energy-related emissi

20、ons increasing by 1.3%.3 Emissions intensity decreased by 4.1%between 2019 and 2023,with an accelerated 1.2%drop in the last year.Five out of eight sectors in scope reduced emissions intensity in the last year,i.e.aluminium,cement,chemicals,aviation and trucking.Additionally,energy intensity decreas

21、ed by 3.2%in 2022 in these sectors,1.6 times more than the global level.4 To gain the required trajectory for net zero,an estimated$30 trillion in additional capital is required by 2050 for the sectors in scope.This figure represents around 45%5 of the total incremental net-zero investment required

22、by 2050.This need for investment is particularly challenging given the competitive profit margins of most of these sectors,which limits companies capacity to absorb the substantial costs while maintaining adequate profitability.Data and artificial intelligence(AI)have emerged as powerful tools to su

23、pport the transition to net zero.Accenture estimates that use of generative AI could improve capital efficiency by 5-7%,reducing capital requirements of hard-to-abate sectors by$1.5-2 trillion for the net-zero transition.Additional value levers include asset management and energy efficiency,research

24、 and development(R&D)acceleration,and enhanced transparency through product-level reporting.However,the increased use of AI is expected to raise electricity demand,potentially competing with hard-to-abate sectors for access tolow-carbon power.A system-wide approach versus point solutions is needed i

25、n hard-to-abate sectors to effectively transition to net-zero emissions by 2050.Net-Zero Industry Tracker:2024 Edition4The Net Zero Industry Tracker highlights the key steps that the industries must take to further progress towards their respective emission reduction goals across five key dimensions

26、 of the readiness framework technology,infrastructure,demand,capital and policy.Each dimension has a readiness score based on a set of metrics.Technology readiness scores have improved this year due to improved economics and adoption;however,nearly half of the required emissions reductions need to b

27、e achieved through technologies that are not commercially viable.The adoption of methane abatement,electric transport and industrial processes,and energy efficiency technologies has increased.However,deep emission reduction in hard-to-abatesectors relies heavily on disruptive technologies that are n

28、ot economically viable today.Investments in R&D need to be ramped up in carbon capture,utilization and storage(CCUS),new production pathways for materials,and hydrogen and itsderivatives.Infrastructure development has been slow;the sectors covered in this report are forecast to represent nearly 70%a

29、nd 55%of the total hydrogen and CCUS capacity required by 2050,respectively.While infrastructure development for low-carbon power has been encouraging,hydrogen and CCUS infrastructure currently address less than 1%of sector requirements.Clean power,hydrogen and CCUS infrastructure need to be develop

30、ed faster in countries with large heavy industry and heavy transport sectors.Demand readiness scores have shown limited progress due to the conditions not being met for scaling demand for low-emission products.Major barriers for scaling clean demand include high green premiums,lack of clarity on cus

31、tomer willingness to pay the premium,and limited industry-wide adoption of carbon threshold standards for green products.Current estimates suggest a 40-70%increase in the price of net-zerobase material products.Standardized carbonthresholds needindustry-wide adoption,and businesses need to enhance p

32、roduct-level reporting.Capital readiness scores have remained stagnant due to lack of material flow of capital to decarbonize the sectors in scope,driven by the challenge of generating returns on clean investments.This report estimates that the$30trillion additional capital required by 2030 across t

33、he sectorsin scope is split 43%($13 trillion)directly bythese sectors and 57%($17 trillion)for clean energy infrastructure.The sectors must generate returns to raise investments on energy transition initiatives,which represent an 80%increase in investment relative to todays levels.Sectors shouldincr

34、ease investments in retrofitting existing assets and building new climate-compatible assets,while energy suppliers needto build the enabling infrastructure.Policy support has been fragmented and lacking cross-regional collaboration.As of 2024,there are 75 carbon-pricing instruments in operation worl

35、dwide,covering 24%of global emissions.6 However,increased protectionism through tariffs on green products add an incremental cost on green premiums.Moreover,there are insufficient incentive-based policies to drive focus on low-emission production.Policy-makers should create stronger incentives that

36、align with the goals of hard-to-abate sectors,energy suppliers and consumers.The sectors in this report face a gridlock as businesses,policy-makers,consumers,energy suppliers and financiers hesitate,each waiting for others to commit to investments and measures thatcan significantly reduce emissions.

37、Hence,there is a need to shift from a point-solutions approach to a system-wide,partnership-based approach,to simultaneously solve several problems,align supply and demand,and overcomecost and risk hurdles.Net-Zero Industry Tracker:2024 Edition5Context1The physical challenges of reducing emissions i

38、n hard-to-abate sectors are compounded by technological,economic and political challenges.Net-Zero Industry Tracker:2024 Edition6The 2030 milestone of the Paris Agreement is fast approaching,and while substantial progress has been made,hard-to-abate sectors remain among the most difficult sectors to

39、 reduce emissions.This is owed to the difficulty of reducing emissions in processes that rely on high-temperature heat or specialized or energy dense fuel.There have been encouraging developments in renewable energy,electric vehicles(EVs)and battery technology.Global renewable energy capacity is pro

40、jected to expand by 2.7 times by 2030,7 exceeding current national targets by 25%and nearing the COP28 goal to triple capacity,mainly driven by improving economics,climate and energy security policies.Battery technology has also experienced significant advancement.The deployment of battery storage s

41、ystems within the power sector more than doubled in 2023,making clean power supply less intermittent.This progress across various technologies has primarily been driven by substantial investments,supportive policy frameworks and a continued decline in costs.Other technologies that are essential for

42、industry emission reduction,such as certain types of clean fuels and carbon capture,utilization and storage(CCUS),have not reached the scale-up phase.Their widespread deployment will require further maturation,scalability and cost reduction before they can be used in industrial applications.For inst

43、ance,global hydrogen growth projections have seen a downward revision by 10-25%compared to earlier estimates,due to a 20-40%increase in green hydrogen costs and continued uncertainty around regulations.8 The global CCUS capacity grew by only 4%in the last two years,9 and future growth is uncertain.R

44、ising geopolitical tensions are also impacting the global path towards net-zero emissions.Energy security was already tested by the Ukraine-Russia conflict,and ongoing conflict in the Middle East risks further strain on global supply chains.Energy prices saw an uptick due to supply constraints drive

45、n by these events,caused some major companies,to scale back their net zero targets.While inflation is seeing a decline,interest rates have remained elevated despite recent cuts.This negatively impacts the ability of hard-to-abate sectors to invest towards reducing emissions,especially in emerging an

46、d developing countries where the weighted average cost of capital(WACC)is higher than in advanced economies.Recent fluctuations in commodity prices,such as the drop in steel prices,have also placed strain on these industries and directed their focus towards maintaining profitability at the expense o

47、f investing in the energy transition.While inflation is seeing a decline,interest rates have remained elevated despite recent cuts.This negatively impacts the ability of hard-to-abate sectors to invest towards reducing emissions.7Net-Zero Industry Tracker:2024 EditionDue to years of shock,including

48、the COVID-19 pandemic and changing geopolitical dynamics,some countries are re-evaluating their trade partnerships and becoming more self-reliant to promote domestic production,through protectionist policies including trade tariffs.For instance,a rise in US tariffs on imports from China,such as a 10

49、0%duty on the import of Chinese EVs,and the EUs carbon border tax are expected to reduce the volume of imports.As per the International Monetary Fund(IMF),new trade restrictions have more than tripled since 2019.Thus,global trade is becoming increasingly fragmented,and this is leading to higher cost

50、s due to the erosion of economies of scale.Advancements in generative artificial intelligence(AI)are driving transformative changes in businesses globally by enhancing productivity,streamlining operations and reducing costs.Despite progress,many companies face challenges in the effective and transpa

51、rent collection and reporting of data across their operations an essential element in their efforts to reduce emissions.A comprehensive data strategy,supported by digital reporting platforms power,can streamline carbon accounting and enable detailed product-level emissions reporting.In addition to t

52、he enhancement of companies emissions reporting,these innovations have the potential to free up capital,which can be used to invest in clean energy projects and advanced technologies.Accenture estimates$10trillion in economic value can be unlocked by 2038 by companies adopting gen AI at scale.10Due

53、to a combination of these technological,economic and political challenges,the eight hard-to abate sectors in scope which contribute to around 40%of the global Scope 1 and 2 greenhouse gas(GHG)emissions have seen limited progress towards their net zero goals.These sectors span across production(i.e.s

54、teel,cement,aluminium and primary chemicals),energy(i.e.oil and gas)and transport(i.e.aviation,shipping and trucking).Global GHG emissions(Scope 1 and 2)by sectorFIGURE 13%2%5%7%6%2%3%10%61%OtherThe tracker represents approximately 40%of global GHG emissionsAviationShippingTruckingSteelCementAlumini

55、umOil and gasPrimarychemicalsSources:IEA and IAI.Net-Zero Industry Tracker:2024 Edition8Framework2The Net Zero Industry Tracker analyses the progress of eight sectors across production,energy and transport,in achieving net-zero emissions by 2050.Net-Zero Industry Tracker:2024 Edition9The Net-Zero In

56、dustry Tracker offers stakeholders a framework and methodology to understand the key drivers of industrial emissions,and the key enablers of the transition to net-zero for eight emission-intensive sectors.The tracker provides both quantitative and qualitative scorecards for the sectors in scope to c

57、ontinuously track their progress towards the net-zero goal.Furthermore,the tracker identifies priority areas for the industries to encourage targeted actions to facilitate progress.Of the eight sectors in scope in the 2024 iteration of the tracker,ammonia has been expanded to primary chemicals(which

58、 also includes ethylene,propylene,benzene,toluene,mixed xylenes and methanol),which contribute to 2.5%of global GHG emissions,increasing the overall volume of emissions being tracked.For the production and energy sectors,the field of analyses covers Scope 1 and 2 emissions,while for transport sector

59、s,the GHG emissions in the fuel supply and operational value chains(well-to-wake emissions)have been covered.While the overarching framework of the tracker remains the same as last year,the quantitative methodology has been updated this year.In addition,numerous cross-cutting themes have been outlin

60、ed into the five readiness dimensions,distilling some of the key technologies and efforts needed across sectors that deserve elevated attention.Performance framework the four drivers of industry net GHG emissionsFIGURE 2ProductionWhat is produced:Industry production volume and mixTransportWhat is be

61、ing transported:Industry transport activity and mixProductionHow is it produced:Production process emission and energy intensityTransportHow it is transported:Emission and energy intensity,transport work by processProductionWhat it contributes to:Value chain emissions and offsetsTransportWhat it con

62、tributes to:Value chain emissions and offsetsProductionWhat energy is used:Types of energy sources consumedTransportWhat fuel is used:Types of fuel sources consumed1423Net GHGemissionsIndustry outputValue chain emissions and offsetsEnergy mixOperational process intensity10Net-Zero Industry Tracker:2

63、024 EditionNet-zero transformation enablersTechnologyCapitalDemandPolicyInfrastructureReadiness framework the five readiness dimensions of industry net-zero transformationFIGURE 3The underlying framework of the tracker combines two complementary lenses to track industries progress on the ground perf

64、ormance and readiness.Performance refers to the drivers of industry net GHG emissions,including industry output,emission and energy intensity,value chain emissions and energy mix.To measure industry readiness for net-zero transformation,a scoring system has been developed across five readiness dimen

65、sions:Technology:Are the technologies needed for net-zero emissions commercially available?Infrastructure:Is the infrastructure to enable use of low-emission technologies available?Demand:Can the market support low-emission products,given the green premiums and 2030 project progress?Capital:Are retu

66、rns sufficient to drive investments towards low-emission assets?Policy:Are the supporting policies to enable the growth of low-emission industry in place?Each of the five dimensions is scored by averaging the values of its sub-dimensions,which are scored on a scale of 1 to 5.A detailed methodology c

67、an be found in the appendices.Each sub-dimension has specific thresholds.Dimensions rated at stage 5 demonstrate significant advancements towards net-zero goals,while stage 1 indicates that substantial progress is still required.For instance,in technology readiness levels(TRL),a score of 1-3 indicat

68、es that the technology is in the concept stage,4-6 signifies prototype testing,7-8 indicates the demonstration phase,9 represents early adoption and 10-11 indicates a fully developed,mature technology.A detailed methodology can be found in the appendices.The targets in the tracker refer to the 2030

69、and 2050 emission intensity thresholds based on sector-specific net-zero trajectories used for the analysis.These trajectories are scenarios based on the analysis of data from the International Energy Agency(IEA)Net Zero by 2050,11 the International Air Transport Associations(IATA)net-zero roadmaps,

70、12 the International Civil Aviation Organizations(ICAO)long-term aspirational goal(LTAG),13 the International Maritime Organizations(IMO)GHG strategy,14 the International Aluminium Institutes(IAI)GHG pathways,15 and the IEAs net-zero report on oil and gas.16 Business-as-usual(BAU)trajectories have a

71、lso been considered based on the International Council on Clean Transportation(ICCT),the IEAs Stated Policies Scenario17 and Mission Possible Partnerships(MPP)sector-specific trajectories.18 These trajectories have been used for this analysis only and are not a final recommendation for the sectors.N

72、et-Zero Industry Tracker:2024 Edition11Scoring matrix for transformation dimensionsFIGURE 4 Technology readiness level(TRL)Infrastructurecapacity required Price elasticityof demand B2B greenpremium(cost)B2C green premium Progress towards2030 projects goal(announced projects)Required increasein capit

73、al Capital efficiency Ease of increasingcapital currentreturn margins Progress towards2030 projects goal(investment stage)Availability andmaturity of policyTechnologyInfrastructureDemandCapitalPolicyDimensionSub-dimensionsStages5Stage4Stage3Stage2Stage1StageNote:Individual key performance indicators

74、 scoring is in the appendices.Definitions Clean power:A combination of renewable energy,including solar,offshore wind,on-shore wind,hydropower,biomass,nuclear and geothermal energy,used to electrify thermal processes in production and as an alternative propulsion source in transport sectorsClean hyd

75、rogen:Considers both blue hydrogen(produced with natural gas abated by CCUS)andgreen hydrogen(produced through electrolysis),though the preference in most casesisgreen hydrogen Green premium:Additional products/fuel costs passed to businesses and end consumers,associated with adoption of low-emissio

76、n technologies“Low-emission”production:Defined quantitatively for each industry in terms of product emission intensity(Scope 1 and 2)Carbon capture,utilization and storage(CCUS):A technology that captures carbon dioxide(CO2)emissions from large point sources,such as power generation and industrial f

77、acilities,and then utilizes or transports the captured CO2 for storage in deep geological formationsNet-Zero Industry Tracker:2024 Edition12Cross-sector findings3The sectors in scope last year have made progress in emissions reduction,but improvement in sector readiness scores has been limited.Net-Z

78、ero Industry Tracker:2024 Edition13Current emissions The eight hard-to-abate sectors in scope collectively contribute to around 40%of direct CO2 equivalent(CO2e)emissions.This includes five heavy industry sectors(steel,cement,aluminium,primary chemicals,and oil and gas)and three heavy transport sect

79、ors(aviation,shipping and trucking).Emissions historical trendFrom 2019 to 2023,the total direct CO2e emissions for the sectors in scope decreased by 1.2%.Thedecline in emissions was mainly driven by aviation,cement,and oil and gas,and was partially offset by an increase in emissions in trucking and

80、 chemicals.Trucking saw the highest increase of 6.2%,19 while aviation emissions declined the most,with areduction of 8.4%.20More recently,from 2022 to 2023,the total absolute direct CO2e emissions for the sectors in scope decreased by 0.9%.This decline in emissions was mainly driven by oil and gas

81、and cement,and was partially offset by the increase in emissions in aviation,steel and shipping.Aviation saw the highest increase of 17.6%,21 while oil and gas emissions declined the most,with a reduction of 6.4%.223.1 Performance2019 vs.2023 absolute direct CO2e emissions by sector in gigatonnes(Gt

82、)CO2eFIGURE 5Year-over-year(YOY)change*201920231234560Oil and gas*-4%-6%Primarychemicals+6%-0.1%Aluminium-1%+0.4%Cement-4%-2%Steel+2%+3%Trucking+6%+1%Shipping-1%+2%Aviation-8%+18%Notes:*Oil and gas data for 2018-2022 since 2023 data is not available;*YOY change represents 2023 vs.2022(except for oil

83、 and gas,which is 2022 vs.2021).Sources:IEA and IAI.From 2019 to 2023,the sectors in scope saw a 4.1%decline in emissions intensity on average.All sectors(except steel)saw a decrease in emissions intensity in this period,with the highest drop of 13.7%23 seen in trucking,closely followed by a 13.6%24

84、 drop in aluminium.More recently,from 2022 to 2023,the sectors in scope saw a 1.2%decline in emissions intensity on average.All sectors except steel and shipping saw a decrease in emissions intensity in this period,with the highest drop of 14.1%25 seen in aviation.Net-Zero Industry Tracker:2024 Edit

85、ion142019 vs.2023 emissions intensity by sectorFIGURE 6Year-over-year(YOY)change*20192023802040601001400120Aviation(g CO2/tRPK)-3%-14%Primary chemicals(t CO2/t)-2%-2%Oil and gas*(kg CO2/boe)-3%naAluminium(t CO2/t)-14%-2%Cement(t CO2/t)-0.2%-0.2%Steel(t CO2/t)+1%+2%Trucking(g CO2/tkm)-14%-1%Shipping(

86、g CO2/tnm)-5%+1%Notes:*Oil and gas data for 2018-2022 since 2023 data is not available;*YOY change represents 2023 vs.2022.Sources:Accenture analysis based on IEA and IAI.Net-Zero Industry Tracker:2024 Edition152019 vs.2023 demand by sectorFIGURE 7Year-over-year(YOY)change*20192023504010203060807001

87、,5002,5005001,0002,0003,0004,5003,5004,0000Shipping(Trillion tonne miles)+4%+1%Trucking(Trillion tonne km)+23%+2%Aviation(Trillion RPK)-6%+37%Oil and gas(mboe/d)+4%+3%Primary chemicals(MT)+37%+2%Aluminium(MT)+14%+3%Cement(MT)-3%-2%Steel(MT)+1%+0.1%Notes:*YOY Change represents 2023 vs.2022.Sources:IE

88、A and IAI.Industry outputThe overall demand across the eight sectors in scope saw an average 9.2%increase in the 2019-2023 period.The rise in demand has been driven by the heavy industry sectors,which saw an average 10.6%increase,where all sectors except cement saw an increase.Primary chemicals and

89、aluminium saw the highest growth across the heavy industry sectors.Cement saw a decline,mainly due to decreased production in China,which accounts for around half of global production,due to its real-estate crisis and COVID-19 pandemic-related policies.The heavy transport sectors saw an average 6.9%

90、increase,mainly driven by the sharp rise in trucking demand,followed by shipping,while aviation demand saw a decline.More recently,from 2022 to 2023,the sectors in scope saw an average 5.8%increase.All sectors except cement saw an increase during this period.The rise in demand was mainly due to avia

91、tion,which saw a 36.9%26 increase recovering from the exceptional COVID-19 pandemic period drop,followed by oil and gas with a 2.9%increase.2716Net-Zero Industry Tracker:2024 Edition2019 vs.2022 energy intensity by sectorFIGURE 8Year-over-year(YOY)change*201920222051015250Aluminium(KWh/T)-0.7%-1%Cem

92、ent(GJ/T of clinker)0.0%+0.3%Steel(GJ/T)-0.8%+5%Trucking(MJ/tonne km)-8%-15%Shipping(MJ/tonne mile)+4%+0.4%Aviation(MJ/RTK)-12%+0.8%Primary chemicals(GJ/T)+0.6%-20%Notes:*YOY change represents 2022 vs.2021.Sources:Accenture analysis based on IEA,IAI and World Steel.Operational process and energyinte

93、nsity Production processes in heavy industry and operations in heavy transport sectors consume large amounts of energy,which contributes to a significant share of their GHG emissions.Efforts are being made across sectors to reduce the energy intensity and bring down energy-related emissions.From 201

94、9 to 2022,the sectors in scope saw a 3.9%decline in energy intensity on average.This decline was mainly driven by primary chemicals,trucking and aluminium,and was partially offset by an increase in energy intensity in steel.For primary chemicals,energy intensity has reduced due to a shift towards mo

95、re efficient production processes.For trucking,increasing electrification and fuel efficiency improvements have contributed to this decline.Recycling and reuse of materials have played a major role in reducing energy intensity for aluminium.For steel,the increase in energy intensity is mainly due to

96、 increase in production in China,which predominantly uses primary processes,which are more energy intensive than secondary production processes.More recently,from 2021 to 2022,the sectors in scope saw a 3.2%decline in energy intensity on average.This decline was mainly driven by aviation and truckin

97、g and was partially offset by an increase in energy intensity in shipping.By comparison,the global energy intensity global energy consumed per unit of gross domestic product(GDP)improved by 2%in the same period,28 which shows that the sectors in scope are moving faster than the global economy in ter

98、ms of improving their energy efficiency.17Net-Zero Industry Tracker:2024 EditionEnergy mix Progress in evolving the energy mix has been relatively slow,as fossil fuels continue to be the primary source of energy,forming a 90%share of the energy mix on average across the sectors in scope.In compariso

99、n,fossil fuels form 81%of the total global energy supply,29 which shows that the sectors in scope are lagging behind in their energy transition journey.Heavy industry sectors like aluminium,steel and primary chemicals have increased the use of electricity in place of coal for generating heat for the

100、ir production processes.Additionally,the aluminium sector is using nuclear energy for its production.Heavy transport sectors are yet to significantly replace fuel oil with alternative fuels,though slight progress has been made in the trucking sector,where the use of biofuels has increased.2022 energ

101、y mix by sector(fossil fuels include coal,oil and gas)FIGURE 9Fossil-fuelsElectricityBiofuelsNuclearOthers1%100%20%40%60%80%0%Shipping100%Trucking96%4%Steel83%14%3%Cement8%92%Aluminium61%39%1%Primarychemicals92%7%1%Oil and gas100%Aviation100%Sources:Accenture analysis based on IEA,IMO and IAI.Value

102、chain emissions andoffsets Value chain emissions(or Scope 3 emissions)remain high in the heavy industry sectors,largely because their upstream supply chains(e.g.raw materials)are highly carbon intensive or the products they produce rely on petrochemical feedstocks(such as plastics).Carbon offsets th

103、at result in additionality continue to be a valuable short-term solution towards emissions reduction,until the technologies and alternative fuels required for industry deep-emission reduction are commercially available.Heavy transport sectors like aviation and shipping have seen growth in the use of

104、 offsets,supported by industry-wide carbon offset policies such as voluntary carbon offsetting in aviation,and book and claim in shipping.The oil and gas sector is also one of the largest users of offsets to compensate for emissions that cannot be easily reduced through operational changes.Net-Zero

105、Industry Tracker:2024 Edition18Readiness assesses the impact of energy transition strategies within the industrial and transport sectors and discusses key cross-sector themes across the five readiness dimensions:technology,infrastructure,demand,capital and policy.According to several scenarios cited

106、 in this report,the eight sectors are projected to reduce emission intensity by 93%by 2050.Key pathways for industrial sectors are process shifts,electrification and CCUS,while transport sectors focus on energy efficiency,hydrogen-based fuels and biofuels.Notable progress has been made in technologi

107、es,including battery electric planes,hydrogen and hybrid electric planes,hydrogen bunkering,ammonia-powered engines in shipping,combining blast furnace-basic oxygen furnaces(BF-BOF)with bioenergy with carbon capture and storage(BECCS)in steel,hydrogen and CCUS in cement,and downstream electrificatio

108、n in oil and gas.Infrastructure for clean power,clean fuels and CCUS requires significant expansion to meet the 2050 net-zero goal.Fossil fuels still account for about 90%of the energy used across these sectors,and less than 1%of the necessary infrastructure for the target energy mix has beenestabli

109、shed.Demand for low-carbon products is increasing,but the gap between demand commitments and willingness to pay green premiums limits scaling.To reach net zero by 2050,$30 trillion in investment is needed,with most sectors operating on limited margins,making it challenging for companies to absorb th

110、e additional costs needed to develop clean technologies while maintaining sufficient profits.Policies can create an enabling environment for decarbonization and adoption of clean energy across industries to support the global 2050 netzero target.Target emissions To achieve net-zero emissions by 2050

111、 and evaluate progress across the eight sectors,this section analyses target emissions for both BAU andnet-zero emissions(NZE)scenarios.By 2050,according to several scenarios cited in this report,industries like shipping,cement and chemicals will need to nearly eliminate their direct emissions,while

112、 sectors such as aviation,trucking,and oil and gas will need to reduce direct emissionsby 79%,91%and 91%,respectively.These reductions highlight the significant efforts required across all sectors to achieve net zero,especially in those that face more challenges in reducing emissions.3.2 ReadinessBA

113、U 2050 and NZE 2050 emission intensity by sectorFIGURE 108.078.3-90%-100%Steel(tCO2/t)Cement(tCO2/t)Aluminium(tCO2/t)Primary chemicals(tCO2/t)Shipping(gCO2/tnm)Oil and gas(kgCO2/boe)Aviation(gCO2/RPK)Trucking(gCO2/tkm)BAUNZE107133.328.2-79%37.23.4-91%1.00.1-91%1.0-98%0.38.5-97%7.30.00.01.3-98%0.0Not

114、e:Emission intensity figures are not comparable between sectors due to different units for production volumes.Sources:IATA,30 IMO,31 IAI32 and IEA.33,34,35Net-Zero Industry Tracker:2024 Edition19Contribution to emission reduction by decarbonization lever for industrial sectors and topmitigation meth

115、odsFIGURE 11Avoided demandEnergy efficiencyElectrificationOther fuel shiftsMaterial efficiencyHydrogenOther process shiftsCCUS246810120GT CO2eTop three mitigation methods Process shift(Including methane reduction and zero-flaring technologies in oil and gas):Expected to reduce emissions by 27%Electr

116、ificationExpected to reduce emissions by 24%CCUSExpected to reduce emissions by 20%202220302050+5%-41%-93%+7%-99%Source:Accenture analysis based on IEA.Decarbonization leversAbsolute direct emissions from industrial sectors(steel,cement,aluminium,primary chemicals,and oil and gas)are projected to de

117、crease by 41%by 2030 and 93%by 2050,largely due to the adoption of various technologies.For the transport sectors(aviation and shipping),direct emissions will need to decrease by around 84%by 2050.Achieving these reductions across all sectors will require coordinated efforts and significant investme

118、nt in the necessary technologies and infrastructure.Net-Zero Industry Tracker:2024 Edition20Contribution to emission reduction by decarbonization lever for transport sectors and top mitigation methodsFIGURE 12Activity increaseEnergy efficiencyHydrogen-based fuelsElectrificationAvoided demandBiofuels

119、CCUS1234560GT CO2eTop three mitigation methods ElectrificationExpected to reduce emissions by 20%20222050Energy efficiencyimprovementsExpected to reduce emissions by 21%Hydrogen-based fuels Expected to reduce emissions by 30%-88%+62%H2Source:Accenture analysis based on IEA.21Net-Zero Industry Tracke

120、r:2024 EditionReadiness scoresAccording to the readiness framework,each of the eight sectors in scope has been evaluated and assigned a score across five readiness dimensions:technology,infrastructure,demand,capital and policy.Each dimension was analysed for all sectors and scored based on the relev

121、ant sub-dimensions detailed in Section 2.The arrows indicate which dimensions and sectors have undergone changes in scores compared to 2023.2024 readiness scores by sector and dimensionTABLE 1TechnologyInfrastructureDemand CapitalPolicyAviationShippingTruckingSteelCementAluminiumPrimary chemicalsOil

122、 and gasReadiness stages:Stage 1Stage 2Stage 3Stage 4Stage 5Decrease vs.2023Increase vs.2023SectorDimensionNet-Zero Industry Tracker:2024 Edition22TechnologyKey readiness questionAre the technologies needed for net-zero emissions commercially available?Key messages Several technologies have seen an

123、increase in their TRL scores compared to last year,including battery electric planes,hydrogen and hybrid electric planes,hydrogen bunkering and ammonia-powered engines in shipping,BF-BOF with BECCS in steel,hydrogen and CCUSin cement,and downstream electrification in oiland gas.Generative AI signifi

124、cantly enhances decarbonization efforts by improving asset management and operational processes,optimizing capital allocation,and automating carbon management,thereby helping companies reduce emissions and costs.Despite its advantages,the growing energy demands of AI systems may contribute to increa

125、sed electricity consumption and modest inflation,as investments in AI could outweigh efficiency gains.Scores for net-zero emissions technologies across sectors(2022-2024)FIGURE 13CementSteelTruckingOil and gasShippingPrimarychemicalsAviation202220232024Aluminium12345Technology readiness scoresNote:A

126、viation,shipping and trucking sectors were not included in the 2022 report,and the primary chemicals sector has been added this year.Readiness score movements in the past year:Trucking:The score increased from 2 to 3 during the past year,mainly driven by the advancement in hydrogen-electric trucks t

127、o early adoption phase.Decarbonizing hard-to-abate sectors requires the development of innovative technologies,many of which are expected to become available between 2025 and 2030.However,several technologies,such as methane and flaring reduction in the oil and gas sector,as well as the decarbonizat

128、ion of electricity for secondary aluminium smelting,are already mature technologies,having a TRL of 10.Meanwhile,methanol-powered engines and ammonia bunkering are nearing widespread implementation with a TRL of 9.Challenges:The development and deployment of new decarbonization technologies often fa

129、ce prolonged timelinesNet-Zero Industry Tracker:2024 Edition23 Many industrial sectors in scope require temperatures exceeding 500C,making electrification challenging.For instance,the steel industry relies on high-temperature heat for 83%of its operations,while cement production requires it for 45%.

130、36 Many companies in these sectors operate with limited research and development(R&D)budgets due to relatively low profitability,limiting their ability to invest in innovative technologies for decarbonization.The increasing doubts about the feasibility of green hydrogen and CCUS are causing targets

131、and projects to be cancelled.Way forward:Several sectors are expected to rely heavily on technologies that are not currently commercially available,such as CCUS and clean hydrogen.For example,it is estimated that CCUS could reduce emissions in the cement sector by 60%by 2050.37 As a result,it is ess

132、ential to focus on reducing energy consumption by improving the energy efficiency of processes,adopting clean fuels across sectors,switching to low-carbon power sources and scaling CCUS technologies.Improving energy efficiency of processes:Enhancing energy efficiency is a cost-effective strategy to

133、lower energy demand and CO2e emissions from fossil fuels.IRENAs 1.5C scenario suggests that improving efficiency could provide about 20%of the necessary CO2e reductions in shipping by 2050.Measures like high-efficiency propellers and waste heat recovery can significantly cut fuel consumption and emi

134、ssions.38 Adopting clean fuels across sectors:Transitioning to clean fuels,such as hydrogen and biofuels,is crucial for decarbonizing industries and transport.Clean hydrogen supply is expected to increase thirtyfold to 16.4million tonnes(MT)by 2030 due to supportive policies.Regions with abundant re

135、newable resources can produce green hydrogen for 3 to 5 per kilogram(kg).39 In the IEAs 2C Scenario,biofuels are projected to rise tenfold in the transport sector by 2060,reaching 30%of transport energy.40 Switching to low-carbon power sources:Renewable energy sources will provide 85%of global elect

136、ricity production in 2050,led by solar photovoltaic(PV)and onshore wind.41 Various sectors will need to electrify operations,although applications like electric arc furnaces(EAFs)in steelmaking may face challenges.42 In 2023,battery storage emerged as the fastest-growing energy technology,increasing

137、 over twofold year-on-year to add 42gigawatts(GW)globally.Lithium-ion batteries experienced a remarkable price drop of 14%from 2022 to 2023,43 driven by advancements in manufacturing and economies of scale.Scaling of CCUS technology:According to the IEA,CCUS could contribute over 25%of emissions red

138、uctions in iron and steel by 2050.CCUS is also emerging as a key solution for chemicals manufacturing.44Expected commercialization date of major technologies by sectorFIGURE 14CementSteelAluminiumAviationPrimary chemicalsTruckingShippingOil and gasToday20252030HEFA Other biofuelsHydrogenBattery elec

139、tric Fuel efficiency measuresPower-to-liquids(PtL)Hydrogen-powered enginesAmmonia-powered enginesBattery electric trucks(BETs)DRI-EAF with carbon captureCarbon capture for cement kilnsCCUSInert anodes Electric boilers Mechanical vapour recompressionDecarbonization of electricity Downstream hydrogenC

140、CUS Upstream electrificationSwitch to low-carbon powerMethane reduction flaringChemicalsrecycling CCUSElectrolytic hydrogenBioenergy and renewablesElectrification It is essential to focus on reducing energy consumption by improving the energy efficiency of processes,adopting clean fuels across secto

141、rs,switching to low-carbon power sources and scaling CCUS technologies.Source:Accenture analysis based on IEA ETP Clean Energy Technology Guide and MPPNet-Zero Industry Tracker:2024 Edition24Digital technologies offer significant advantages to help companies in their decarbonization efforts,specific

142、ally in operational efficiency,capital and carbon management.Three major value levers have emerged for data and AI applications.Operational efficiency:Generative AI enhances asset management and operational processes.By using predictive asset management,companies can:Optimize production systems:AI h

143、elps streamline the entire production process,balancing output,margins and emissions.This boosts efficiency while minimizing energy use and emissions,directly supporting decarbonization.Improve asset energy efficiency:AI enables better equipment monitoring,ensuring that assets run at peak energy eff

144、iciency,reducing both emissions and energy costs.Capital projects:Generative AI optimizes capital allocation and project management by:Modelling energy transition scenarios:AIhelps companies simulate various energy transition scenarios,enabling informed decisions on capital allocation for low-carbon

145、 and carbon-neutral projects.Enhancing project design:AI can generate and refine capital project designs,reducing time-to-market and minimizing capital expenditure(CapEx)overruns.Improving CCS:AI has the potential to lower CCS costs by up to 30%,according to the IEA.45 It enhances site selection for

146、 carbon storage through geological data analysis and optimizes CCS efficiency by monitoring the capture process.Carbon management:Generative AI supports carbon management and sustainability initiatives by:Automating emissions management:AItracks real-time energy consumption and optimizes energy effi

147、ciency at the equipment and process levels,reducing GHG emissions and lowering carbon footprints.Managing carbon credits:AI automates the purchase and use of carbon credits,ensuring compliance with emissions regulations while maximizing green premium opportunities.Decarbonizing the supply chain:AIco

148、ntinuously assesses suppliers carbon performance,helping companies choose low-carbon suppliers and reduce Scope 2 and 3 emissions across the supply chain.Forecasting energy and emissions:AI predicts energy demand and deviations,allowing companies to take preventive measures to avoid higher emissions

149、 and align operations with sustainability goals.Despite its advantages,generative AI presents several challenges.The continuous operation of AI systems results in a constant peak demand for electricity from data centres,with projections indicating that their energy consumption could surpass 9%of tot

150、al US electricity usage by 2030.46 Digital technologies offer significant advantages to help companies in their decarbonization efforts,specifically in operational efficiency,capital and carbon management.Net-Zero Industry Tracker:2024 Edition25InfrastructureKey readiness questionIs the infrastructu

151、re to enable the use of low-emission technologies available?Key messages The cumulative infrastructure capacity required by 2050 across the sectors in scope in their net-zero scenario is 4.8 terawatts(TW)of clean power,297 million tonnes per annum(MTPA)of clean hydrogen and 4.2 gigatonnes per annum(

152、GTPA)of CCUS.47 Compared to IEA estimates for the global target capacity in 2050 in their Net Zero Emissions by 2050 Scenario,the requirement from these sectors contributes to 42%of the global target for clean power,69%for clean hydrogen and 55%for CCUS.48Scores for low-emission technology infrastru

153、cture across sectors(2022-2024)FIGURE 15CementSteelTruckingOil and gasShippingPrimarychemicalsAviation202220232024Aluminium12345Infrastructure readiness scoresNote:Aviation,shipping and trucking sectors were not included in the 2022 report,and the primary chemicals sector has been added this year.Re

154、adiness score movements in the past year:Cement:The score decreased from 2 to 1 during the past year,mainly due to limited advancements in expanding clean power and CCUS capacity,and the significant capacity increase required to meet the 2050 infrastructure requirements as compared to the other sect

155、ors in scope.Trucking:The score decreased from 2 to 1 during the past year,mainly due to lack of substantial increase in the use of clean hydrogen and clean power to meet energy requirements,and the significant capacity increase required to meet the 2050 infrastructure requirements as compared to th

156、e other sectors in scope.To achieve the 2050 net-zero target for the hard-to-abate sectors in scope,clean power,clean hydrogen and fossil fuels abated by CCUS will need to form over 90%of the final energy mix.Thus,it is important to look at the availability of infrastructure to support this energy r

157、equirement across each of the sectors in scope.Currently,fossil fuels contribute to approximately 90%of the energy used across these sectors,and less than 1%of the required infrastructure to meet the final energy mix targets is in place.In comparison,fossil fuels form 81%of the total global energy s

158、upply,49 which shows that the sectors in scope are lagging behind in their energy transition journey.Net-Zero Industry Tracker:2024 Edition26The cumulative infrastructure capacity required across the sectors in scope is 4.7 TW clean power,297 MTPA clean hydrogen and 4.2 GTPA CO2 utilization.Compared

159、 to IEA estimates for the global target capacity in 2050,the requirement from thesesectors contributes to 42%of the global target for clean power,69%for clean hydrogen and 55%for CCUS.502050 NZE infrastructure capacity required by sectorFIGURE 16Note:*Global targets as per IEA51Source:Accenture anal

160、ysis based on data from IATA,IMO,MPP,IEA and CGI.Clean power:Clean power derived from sources like solar,wind,hydropower and nuclear is expected to be the primary means for reaching global net-zero ambitions.Regarding decarbonizing hard-to-abate heavy industries and transport,clean power has direct

161、and indirect applications,including theelectrification of industrial processes and the production of clean fuels like green hydrogen.In aggregate,by 2050,clean power is expected to be an average 22%of thefinal energy mix across the sectors in scope.However,theapplication and impact of clean power on

162、 these sectors vary.Clean powers direct application in decarbonizing is especially critical for sectors like steel,aluminium and trucking,where clean electricity is better positioned to replace fossil fuels in specific processes.For instance,aluminium production has already made strides by using ren

163、ewable electricity,which currently accounts for 39%52 of its smelting energy mix for primary aluminium.Steel production can benefit from electrifying operations like steel rolling,and the trucking industry can adopt battery-electric trucks(BETs),which run directly on clean electricity,reducing emiss

164、ions in short-and medium-haul transport.Indirectly,clean power is necessary for the production of green hydrogen and other clean fuels,which are expected to account for 40%of emissions reduction in heavy transport sectors,and 12%in heavy industry sectors(including oil and gas)by 2050.For industries

165、like steel and chemicals,which require high temperatures and use fossil fuels as feedstock,green hydrogen offers a solution.Green hydrogen,produced via electrolysis powered by renewable energy,can help replace coal in steelmaking or serve as a clean feedstock in chemical production,such as for ammon

166、ia and methanol.In transport,green hydrogen and synthetic fuels produced from renewable electricity will be vital in decarbonizing long-haul trucking,aviation and shipping,where direct electrification is challenging due to limited availability of electrification technologies and nature of their ener

167、gy needs.Clean fuels:The transition to clean fuels and feedstocks is essential for achieving emissions reductions in heavy industrial and transport sectors by 2050.The key types of clean fuels used in these sectors include:Clean hydrogen:Hydrogen(particularly green hydrogen)produced using renewable

168、energy sources is essential for various industrial applications.Blue hydrogen is also expected to play a role.Advanced biofuels:Derived from feedstocks like agricultural residues and waste oils,and sustainable energy crops that do not compete with food need.Sustainable aviation fuel(SAF),in particul

169、ar,is crucial for reducing aviation emissions.In aggregate,by 2050,clean power is expected to be an average 22%of thefinal energy mix for the heavy transport sectors and 33%for the heavy industry sectors including oil and gas.AviationShippingTruckingSteelCementAluminiumPrimary chemicalsOil and gasTo

170、talGlobal target*%Clean power generation(TW)000.70.80.60.22.20.24.711.242%Clean hydrogen production(MTPA)4472504861060829743069%Carbon capture,utilization and storage(GTPA)0.70.1300.851.40.0860.640.394.27.655%Net-Zero Industry Tracker:2024 Edition27 Ammonia:Used as a zero-emission fuel(ZEF)in the sh

171、ipping industry,ammonia can be produced from green hydrogen or from natural gas coupled with CCS.Methanol:Another clean fuel for shipping,methanol can be produced from renewable sources and offers a lower carbon footprint.Waste:Renewable municipal waste,sewage and landfill gas,and residue waste are

172、important in some applications such as in kilns in the cement industry.The analysis shows that an average 61%of energy needed in 2050 climate scenarios for heavy transport sectors,and 21%for heavy industry sectors will be sourced from clean fuels.The sectors in scope often require high energy densit

173、y fuels(such as in shipping and aviation),high temperature process heat(steel,cement)or feedstock to produce secondary products(chemicals).While some of these processes and fuels can be replaced by other energy carriers(such as electricity),many cannot,and there will be strong competition for those

174、clean electrons for uses in other sectors.Thus,it is imperative that clean fuels develop alongside electrification.In the shipping industry,clean fuels such as ammonia and methanol are essential to meet the International Maritime Organizations(IMO)targets for achieving net-zero emissions by or aroun

175、d 2050.Ammonia and methanol offer an alternative to traditional marine fuels,significantly lowering the carbon footprint of maritime transport when they are produced from low-to zero-carbon energy sources(such as biomass or clean electricity).In the aviation sector,SAF is expected to play a crucial

176、role.SAF,derived from renewable feedstocks like agricultural residues and waste oils,can reduce lifecycle emissions by up to 80%compared to conventional jet fuel.The analysis shows that 400MTPA of SAF alone is needed in the sector by 2050.Meanwhile,the trucking industry is exploring the use of hydro

177、gen and biofuels to replace diesel,thereby reducing emissions and improving air quality;however,the sector can be more easily electrified for certain transport cases.In the heavy industrial sectors such as steel,chemicals and cement,clean fuels are equally critical.The steel industry is transitionin

178、g to green hydrogen to replace coal in the production process,and green hydrogen is expected to contribute to 21%of steel emissions reduction by 2050.53 The chemicals industry receives 93%of its energy from fuels but will also need to shift towards green hydrogen,ammonia and methanol to reduce emiss

179、ions.In the cement industry,the use of alternative fuels like biomass and waste-derived fuels is being explored to lower the carbon footprint.These transitions are not only essential for meeting environmental targets but also for ensuring the long-term viability and competitiveness of these industri

180、es in a low-carbon economy.Carbon capture utilization and storage(CCUS):Hard-to-abate sectors such as cement,steel,chemicals and aluminium are characterized by emission-intensive processes that are challenging to decarbonize using methods such as clean power and process changes.To address this,a mul

181、ti-faceted approach involving CCUS and The analysis shows that an average 61%of energy needed in 2050 climate scenarios for heavy transport sectors(excluding trucking),and 21%for heavy industry will be sourced from clean fuels.Net-Zero Industry Tracker:2024 Edition28carbon offsets is essential.CCUS,

182、in particular,is expected to account for 18%of global emissions reduction in the heavy industry sectors,and 1%in the heavy transport sectors in scope by 2050.Moreover,CCUS facilitates the production of blue hydrogen,which can significantly reduce emissions by providing a low-carbon fuel alternative

183、for heavy industry and transport.In 2024,global operational CCUS capacity reached over 50 MT of CO2 per year,with over 110 commercial-scale projects potentially reaching final investment decision(FID).54 If these projects proceed as planned,CCUS investment could rise almost tenfold to$26 billion by

184、2025,boosting global CO2 capture capacity to 430MT per year and storage to 620 MT per year by 2030.55 However,despite progress,current CCUS deployment lags behind net-zero needs,with only 20%of the announced capture capacity and 15%of the storage capacity for 2030 in place or reaching FID.56 Industr

185、ial sectors are even further behind,representing less than 10%of the announced global capacity,far below the 25%of CO2 they need to capture by 2030 under the IEA Net Zero Scenario.57 High costs,technological challenges,insufficient CO2 transport and storage infrastructure,and regulatory uncertaintie

186、s remain major barriers to scaling CCUS in time to meet emission reduction targets.Government investments,such as the$12 billion from the US Infrastructure Investment and Jobs Act and various European initiatives,have significantly supported the expansion of CO2 pipelines and storage infrastructure,

187、which must be available promptly to meet growing CCUS demand.ENI has successfully secured UK government funding to support its Hynet Project on creation of a CCUS infrastructure network by 2030.58 Equinor,Shell and Total have invested in the Northern Lights project,the worlds first cross-border CO2

188、transport and storage facility,which is now ready for use.59Challenges:Clean power:Policy uncertainties and delayed policy responses to the new macroeconomic environment,insufficient investment in grid infrastructure preventing faster expansion of renewables,cumbersome administrative barriers and pe

189、rmitting procedures and social acceptance issues,and insufficient financing in emerging and developing economies Clean fuels:Limited international collaboration in terms of supportive policies to increase production of hydrogen-based fuels and biofuels,and needed infrastructure,combined with a lack

190、of clear demand signals in terms of demand projections across sectors and pricing that is competitive with fossil fuels.Carbon standards and accounting are also insufficient to accurately measure and assess fuel options,and enable comparability and cross-border trade.CCUS:High costs related to techn

191、ology and infrastructure,insufficient regulatory frameworks and incentives to support large-scale adoption,and the need for enhanced public and industry trust in its effectiveness and safetyWay forward:While clean power is increasingly available and crucial for decarbonizing hard-to-abate sectors,mu

192、ch greater investment is needed to achieve net-zero targets.Approximately 50%of the total investment will come from the broader ecosystem,with a notable portion allocated to energy infrastructure.By 2050,clean power is projected to account for 26%,60 100%61 and 60%62 of thesteel,aluminium and trucki

193、ng energy mix by 2050,respectively.On the other hand,the relative role of renewables and electrification in the cement and chemicals sectors is more limited,with clean power expected to be only 8%63 of the 2050 power mix for cement,and approximately 0%for chemicals.64 To reach net-zero targets,a wid

194、er array of solutions,including clean fuels,will be essential.The IEA and IRENA indicate that about half of final energy demand in net-zero scenarios will come from non-electron sources.These include renewable molecules such as liquid,gaseous and solid clean fuels,which are especially important for

195、sectors with non-energy uses,such as feedstocks.CCUS will also be a key component,with new players like gas infrastructure developers,chemical companies and capture-as-a-service providers entering the market.This increased competition helps reduce costs,particularly through the creation of CCUS hubs

196、,where infrastructure is shared by multiple emitters.Despite the growth in CCUS,sectors like aviation will still require carbon offsets for remaining emissions,necessitating collaboration among governments,businesses and stakeholders to address challenges like verification and transparency.Industrie

197、s and co-located companies from different industries can benefit from collaborating with each other through shared infrastructure models(such as infrastructure hubs and industrial clusters)to improve access to the required clean energy,by capitalizing on economies of scale.CCUS is expected to accoun

198、t for 18%ofglobal emissions reduction in the heavy industry sectors,and 1%in the heavy transport sectors in scope by 2050.Net-Zero Industry Tracker:2024 Edition29DemandKey readiness questionCan the market support low-emission productsgiven the green premiums and 2030 project progress?Key messages De

199、mand signals for low-carbon products areincreasing,but the gap between demand commitments and willingness to pay green premiums puts clean technology investments at risk.Key barriers for scaling demand include unclear standards for carbon thresholds,uncertainty in measurements,low willingness to pay

200、 and limited previous experiences and typically unbinding offtake agreements at scale for low-carbon products.Collaboration between sectors and policy-makers is needed to establish clear standards,improve reliability of carbon measurements and address high costs to encourage the adoption of low-carb

201、on products.Demand scores for low-emission products across sectors(2022-2024)FIGURE 17CementSteelTruckingOil and gasShippingPrimarychemicalsAviation202220232024Aluminium12345Demand readiness scoresNote:Aviation,shipping and trucking sectors were not included in the 2022 report,and the primary chemic

202、als sector has been added this year.Sectors with readiness score movements in thepast year:Shipping:The score increased from 2 to 3 compared to last year as MPPs announced projects exceeded the 2030 target.Aluminium:The score decreased from 4 to 3 compared to last year due to limited progress toward

203、s the MPPs announced projects of 70 low-carbon refineries and smelters by 2030.Demand signals for low-carbon products are gradually growing and are starting to be tested for scale and associated green premium potential.The apparent disconnect between demand commitments and readiness to pay a green p

204、remium is weakening the business case for low-carbon producers being willing to invest in clean technologies.ChallengesCurrently the main barriers for scaling demandinclude:Standards and definitions:Lack of clear and unified industry-wide standardized thresholds for low-carbon and near-zero emission

205、 products impedes product comparison.Carbon footprint methodologies and emissions tracking standards have been developed in most sectors but are not being implemented consistently to reach widespread adoption.Net-Zero Industry Tracker:2024 Edition30 Auditability:There is a lack of clear verification

206、 for carbon footprint calculations,which affects trust in these methods and slows down demand for low-carbon products.Willingness to pay premium:The layered costs of using multiple low-carbon materials in products can add up significantly,especially in business-to-business(B2B)markets,making adoptio

207、n costly and limiting demand.Offtake agreements:The critical mass needed for offtake agreements in most sectors has not been established yet.Additionally,the non-binding nature of most offtake agreements limitspace.Way forward:Hard-to-abate sectors face a gridlock in decarbonization due to systemic

208、inability to effectively distribute the costs along the value chain.Breaking through would require unparalleled collaboration and realization that the costs of decarbonization need to be shared among the industry players and society.Sectors have started addressing barriers to standardizing carbon co

209、ntent measurement through various initiatives.For example,IATAs TrackZero provides a comprehensive methodology for aviation.The Industrial Transition Accelerator(ITA)is collaborating with standard-setters to promote standards in key sectors like aviation fuel,ammonia,aluminium,cement and steel.65 Co

210、mpanies must enhance transparency in carbon accounting and collaborate across value chains with policy-makers and industry bodies to align sector-wide standards,methodologies and definitions,ensuring consistent implementation for decarbonization progress.The First Movers Coalition(FMC),accounting fo

211、r over 100 corporate members,has established ambitious purchasing commitments for low-carbon and near-zero industrial products across several sectors.For example,regarding steel,FMC members have set a target for at least 10%of their steel purchases to be on near-zero emissions steel by 2030.The coal

212、ition helps in resolving the“first mover disadvantage”challenge by establishing a strong demand signal to encourage suppliers and investors to break the gridlock.The sectors must reduce the currently high B2B green premiums to align consumer expectations with willingness to pay.For example,for the s

213、hipping sector,biofuels and hydrogen-based synthetic fuels are 1.5 to 4 times and 2 to 6 times the cost of conventional bunkering fuel,respectively.Having clear price points on consumer willingness to pay for different products would incentivize suppliers to target cost reduction innovation and buil

214、d economies of scale.Hard-to-abate sectors face a gridlock in decarbonization due to systemic inability to effectively distribute the costs along the value chain.Key industry standards,green premium and the percentage of low-emission productsTABLE 2SectorExamples of notable industry standardsPercent

215、age of low-emission productsB2B green premium*B2C green premium*Aviation IATA TrackZero(2021):Framework for companies to report on their individual progress on performance metrics such as fuel efficiency,carbon intensity and SAF share Carbon Offsetting and Reduction Scheme for International Aviation

216、(CORSIA)(2019):Framework for airlines to report their emissions annually Less than 1%of current aviation energy consumption comes from low-emissions sources.300-400%per litre of fuel3-12%per ticketShipping IMO Data Collection System(2019):Framework for ships to report fuel oil consumption to guide f

217、uture IMO measures for reducing GHG emissions Sea Cargo Charter(2019):A framework for assessing and disclosing the climate alignment of ship chartering activities worldwide 5%current LNG usage in total fuel consumption Less than 1%of low-emission fuels,such as methanol,in total fuel usage30-80%per s

218、hipment1-2%per product unitTruckingGlobal Logistics Emissions Council Framework(2016):Establishes comprehensive global standardized frameworks to measure GHG emissions from private and public sector operations,including the trucking sectorLess than 1%of the battery and fuel cell electric trucks need

219、ed by 2050 are available.33-133%per vehicle1-3%per itemNet-Zero Industry Tracker:2024 Edition31By promoting energy efficiency and demand-side management,we can reduce overall consumption,helping to alleviate the pressure on prices.Programmes that encourage energy-saving behaviours can help consumers

220、 save money while contributing to carbon reduction goals.The transition to a low-carbon economy presents an opportunity to enhance daily life,encouraging beneficial behavioural changes and innovation.While some price adjustments for essential products may occur,proactive planning and supportive poli

221、cies can help balance these effects,paving the way for a more sustainable and equitable future for all.The share of societal costs of industry decarbonization and broad energy transition underscores the need for equitable transitioning.Policy-makers must prioritize support for vulnerable populations

222、 most affected by price increases and potential job losses.Measures such as subsidies for low-income households,investment in public transport and incentives for energy efficiency can encourage positive behavioural changes,easing the financial burden and protecting those least able to afford the tra

223、nsition.For instance,the Just Transition Fund not only provides grants and technical assistance but also promotes policy development and peer learning to support communities facing job displacement,such as those impacted by the decline of coal-based industries.66 By promoting energy efficiency and d

224、emand-side management,we can reduce overall consumption,helping to alleviate the pressure on prices.SectorExamples of notable industry standardsPercentage of low-emission productsB2B green premium*B2C green premium*Steel The worldsteel Climate Action Data Collection(2008):Framework for companies to

225、report CO2 emissions,enabling steel plants to benchmark against average and best performances to identify improvement areas Climate Group Steelzero Reporting Framework(2020):Organizations are required to report to the Climate Group annually on their progress towards their SteelZero commitmentLess th

226、an 10%of steel was produced using low-emission processes,with nearly all progress occurring in low-emission secondary production like recycling40-70%per ton of steel0.5%per carCementGlobal Cement and Concrete Association(GCCA)sustainability guidelines(2018):Framework for companies to report on speci

227、fic KPIs such as CO2 emissions,fuels and raw materials used in manufacturingLess than 1%near-zero-emissions clinker production for cement60-70%per ton of cement1-3%per built houseAluminiumAluminium Carbon Footprint Methodology(2018):Specifies the principles and requirements for quantifying GHG emiss

228、ions from primary aluminium production processesApproximately 30%of primary production emits less than 5t CO2e/t40%per ton of aluminium1%per carPrimary chemicalsGRI Sector Program(2019):Framework designed for companies to report on sector-specific standards in the manufacturing ofchemical products,i

229、ncluding plastics andfertilizersLess than 2%of low-emission primary chemicals are currently being produced55%1-3%Oil and gasOil and Gas Climate Initiative(OGCI)Reporting Framework(2016):Framework for companies to report on specific metrics including GHG figures and low-carbon investment1%contributio

230、n of the oil and gas sector to the total clean energy investments globally10%per barrel of oil7%per metric million British thermal unit(MMBtu)of gas6%per litre of gasoline1%per MWh of electricityNote:*Accenture analysis.Sources:Smart Freight Centre.(n.d.).The GLEC Framework;International Civil Aviat

231、ion Organization(ICAO).(n.d.).Carbon Offsetting and Reduction Scheme for International Aviation(CORSIA);International Maritime Organization(IMO).(n.d.).IMO Data Collection System(DCS);Sea Cargo Charter.(2024).Sea Cargo Charter:Aligning global shipping with societys goals;Worldsteel Association.(n.d.

232、).Climate Action Data Collection;Climate Group.(n.d.).SteelZero;Global Cement and Concrete Association(GCCA).(2019).Sustainability Charter and Guidelines;World Aluminium.(2018).Aluminium Carbon Footprint Technical Support Document;GRI.(n.d.).Sector Program;Oil and Gas Climate Initiative(OGCI).(2023)

233、.Oil&Gas Climate Initiative Reporting Framework.Key industry standards,green premium and the percentage of low-emission products(continued)TABLE 2Net-Zero Industry Tracker:2024 Edition32CapitalKey readiness questionAre returns sufficient to drive investments towards low-emission assets?Key messages

234、To meet net zero scenarios across the eight sectors by 2050,$30 trillion is needed as cumulative additional investment,with 57%required by the ecosystem and 43%by sectors.67 Increased capital spending and funding strategies are essential for advancing clean technology development.Companies can offse

235、t decarbonization costs by tapping into new markets,setting premiumprices,and lowering energy and material expenses.Capital scores for low-emission assets across sectors(2022-2024)FIGURE 18CementSteelTruckingOil and gasShippingPrimarychemicalsAviation202220232024Aluminium12345Capital readiness score

236、sSectors with readiness score movements in thepast year:Cement:The score increased from 1 to 2 during the last year,as current capital levels increased,leading to an additional 35%of annual CapEx needed,compared to 71%previously.To meet net-zero scenarios,the eight sectors in scope need an estimated

237、 additional$30 trillion in investments with more than 68%of this needed for trucking,aviation and primary chemicals.Of the total investments,57%will be required from the ecosystem for enabling infrastructure,while 43%will be needed within the sectors to retrofit existing assets and develop new techn

238、ologies.68 In last years report,the investment was divided across infrastructure and capital sections,with$13.5 trillion for infrastructure and$11 trillion for industries to retrofit assets.This year,those figures have been combined into the capital section.Challenges Investments in low-carbon techn

239、ologies,such as clean hydrogen and CCUS,require significant capital that often exceeds current spending levels.Most sectors in scope operate with low profit margins(typically between 3%and 10%),except for the oil and gas sector,which has a higher margin of about 15%.69 This makes it hard to cover th

240、e additional costs of decarbonization while maintaining profitability.Increased demand for capital from multiple companies increases competition,making it harder for smaller firms to secure necessary funding.Net-Zero Industry Tracker:2024 Edition33Existing annual CapEx vs.additional annual required

241、by 2050 by sector and ecosystem($billions)FIGURE 19SteelCementAluminumAviationPrimarychemicalsTruckingShippingOil and gasExisting annual CapExAverage additional annual CapEx required by ecosystem by 2050Average additional annual CapEx required by sector by 2050968170179442071912862131073201113990129

242、1473516235 15208611811450624174123251Way forwardTo decarbonize high-emission sectors,companies can use several capital-raising strategies.Green debt issuance,such as green bonds or sustainability-linked loans(SLLs)can provide the required funding by linking loan terms(e.g.interest rate)to sustainabi

243、lity metrics.This incentivizes companies by linking financial impact directly with sustainability performance.For example,voestalpine,an Austria-based steelmaker,has successfully issued the first green corporate bond for around$550 million to finance sustainable projects.Among these is voestalpines

244、greentec steel,which refers to the production of high-quality steel with a reduced carbon footprint.70 Green securitization can unlock financing in debt capital markets for smaller-scale,low-carbon and climate-resilient assets,improving access to capital and reducing costs.71 Moreover,special funds

245、are helping to decarbonize high-emission sectors,such as the Climate Investment Funds(CIF),which recently announced the launch of its Industry Decarbonization Program.This programme offers up to$1 billion to support the transition of heavy-emitting sectors in developing countries.The programme will

246、spur innovation,provide proof of concepts for new technologies and advance a just transition.72In addition,public-private partnerships(PPPs)can help in raising capital for decarbonization efforts.For instance,the US Department of Energy has allocated$2.2 billion in funding for the Appalachian Hydrog

247、en Hub and the Gulf Coast Hydrogen Hub.73 National and regional development banks can enhance private sector investment by mitigating risks and facilitating access to capital,while development finance institutions(DFIs)improve the bankability of green projects through de-risking instruments and tech

248、nical assistance.Private equity firms are also increasingly investing in long-term decarbonization opportunities for high-emitting sectors.For example,Ara Partners focuses on investing in technologies that replace polluting industrial processes,as well as in businesses that support decarbonization p

249、latforms through their products and services.74 Capital recycling also serves as an effective financing strategy for long-term decarbonization projects.By selling or leasing assets that have transitioned to a lower-risk phase,firms can repurpose the capital to invest in new green initiatives.This ap

250、proach enhances asset efficiency while providing ongoing funding for decarbonization efforts.75Source:Accenture analysis based on MPP,S&P,DNV,Center for Global Commons and IEA dataNet-Zero Industry Tracker:2024 Edition34Most of the investments needed will come from the private sector.Companies will

251、invest only if the business case is robust enough and risk-adjusted returns can be earned over time.Governments and other relevant actors can play an important role in de-risking investments through targeted policies and blended financing,especially for“first-of-its-kind”applications of key technolo

252、gies in hard-to-abate sectors.Additionally,to further help developing countries raise capital,strategies such as increasing concessional capital from institutions,expanding private investment through tools like blended finance and risk mitigation,and enhancing domestic financial markets and tax syst

253、ems have emerged.Additional approaches include sovereign debt restructuring,carbon market development and improved risk frameworks.76 Developed countries also have a role to play,by providing concessional finance,supporting risk-reducing instruments and promoting global climate finance initiatives.A

254、n example of such collaboration is Pentagreen Capital,launched by HSBC and Temasek,aimed at mobilizing over$1 billion for sustainable infrastructure in South-East Asia.Their financing of solar and bioenergy projects exemplifies how developed countries can provide essential capital and expertise to s

255、timulate private sector investment in developing nations.77While the costs of these initiatives may be significant,companies can offset some of these expenses by generating returns from decarbonization initiatives across multiple value levers.New markets:To increase profits,companies can use their c

256、ore businesses to tap into new markets.For example,Maersk is actively developing both the supply and demand for green shipping fuels.By investing in a green ammonia facility with Danish logistics group DFDS and establishing a green methanol company,Maersk aligns its operations with carbon reduction

257、goals while positioning itself to capture market share in a growing sector.78 Premium pricing:Companies that identify opportunities for greener products can command premium prices,as green premiums are becoming more prevalent across various commodities.These premiums can offer added value to consume

258、rs by supporting sustainable choices,allowing companies to maintain industry margins with moderate adjustments in consumer prices.Economic factors,including inflation and rising living costs,are influencing the supply-demand balance in these markets.For instance,high-quality recycled plastics have a

259、chieved an average premium of up to 60%over virgin plastics in recent years.Similarly,low-CO2 steel is expected to command significant premiums by 2030.79 Energy and material expense reduction:Companies that manage to reduce both their costs and carbon emissions can gain a bigger share of the market

260、 and save money for future projects aimed at reducing their environmental impact.Many industry leaders focus on cutting down their emissions by 20-40%.At the same time,they work on lowering their costs,which leads to higher profits.80 Enhanced branding:Decarbonization enhances a companys brand reput

261、ation,cultivating trust and loyalty among environmentally conscious consumers while differentiating it in the marketplace.By adopting transparent and genuine green practices,companies improve brand perception and customer loyalty,which can lead to increased sales and profitability.While the costs of

262、 these initiatives may be significant,companies can offset some of these expenses by generating returns from decarbonization initiatives across multiple value levers.Net-Zero Industry Tracker:2024 Edition35PolicyKey readiness questionAre the supporting policies to enable the growth oflow-emission in

263、dustry in place?Key messages Effective policies are essential for creating an enabling environment to achieve the 2050 net-zero target.Decarbonization policies face challenges including increased costs,uneven global commitment,opposition from fossil fuel sectors and risks of carbon leakage.GHG emiss

264、ions reduction policies can be classified into three main types:market-based,mandate-based and incentive-based.Policies scores supporting the growth of low-emission industry across sectors(2022-2024)FIGURE 20CementSteelTruckingOil and gasShippingPrimarychemicalsAviation202220232024Aluminium12345Poli

265、cy readiness scoresSectors with readiness score movements in thepast year:The policy scores for all the sectors have remained stagnant since last year,due to no major developments in terms of sector-specific policies and regulations.To achieve the global 2050 net-zero target,policies can help create

266、 an enabling environment for decarbonization and adoption of clean energy across industries.ChallengesDecarbonization policies face several significant challenges,which vary depending on the region,industry and the specifics of the policy:Clean energy policies can,in some instances,raise costs for b

267、usinesses and consumers,leading to social resistance and implementationdifficulties.Uneven commitment to decarbonization across countries complicates coordinated efforts across global product value chains and can undermine national progress.Distributional effects on suppliers and workers in emission

268、s-intensive industries can weaken policies aimed at reducing emissions.Regulatory arbitrage may drive businesses to relocate to less regulated regions,diminishing overall emission reduction efforts.Note:Aviation,shipping and trucking sectors were not included in the 2022 report,and the primary chemi

269、cals sector has been added this year.Net-Zero Industry Tracker:2024 Edition36Way forwardCurrently,the different policies on GHG emissions reduction are of three key types:Market-based:This type of policy involves the construction of systems that make the polluting entity incur a cost for their emiss

270、ions.These systems can be carbon taxes,emissions limits or cap-and-trade programmes.The European Unions(EU)Emission Trading Scheme(ETS)81 is an example of a market-based GHG emission reduction policy.This type of policy can be classified as a“push”policy because it pushes the industry to move away f

271、rom emission-intensive practices.The EU ETS policy covers the steel,cement,chemicals,aviation and shipping sectors.Mandate-based:This type of policy involves the introduction of direct regulations or setting up of government targets for decarbonization initiatives such as installed capacity of speci

272、fic types of clean energy.The EUs Net Zero Industry Act(NZIA),82 Chinas 14th Five Year Plan83 and Indias National Action Plan on Climate Change84 are examples of a mandate-based GHG emission reduction policy.This type of policy can also be classified as a“push”policy,since it pushes the industry to

273、move away from emission-intensive practices.Incentive-based:This type of policy involves direct funding,tax credits or subsidies from the government to support decarbonization initiatives like increasing the production of clean energy or the development of low-emission technologies.The US Inflation

274、Reduction Act(US IRA)85 and Japans Green Transformation(GX)Policy86 are examples of an incentive-based GHG emission reduction policy.This type of policy can be classified as a“pull”policy,as it pulls theindustry towards low-emission practices.Each policy type has specific objectives and covers key s

275、ectors and technologies.A balanced approach,combining push and pull strategies,can encourage long-term industry participation,providing pathways for sectors like transport and industrial sectors to decarbonize effectively.Policy summaryTABLE 3Policy namePolicy typePolicy objectivesKey pointsSector/t

276、echnology coverageUS IRA(2022)Incentive-based(pull)A 40%reduction in US GHG emissions by 2030,relative to 2005 levels Uses tax incentives to encourage private sector investment in clean energy projects$369 billion in federal funding towards clean energy This funding includes$100 billion to solar ene

277、rgy,$53 billion to enhance energy storage solutions,$78 billion for advancing battery manufacturing,$23 billion for developing hydrogen technologies,$27 billion to support wind energy,and$20 billion allocated to carbon capture and other emerging technologies.Energy(low-carbon power)Transport(low-car

278、bon fuels e.g.hydrogen and EV adoption)CCUS technology for manufacturing(steel,cement,chemicals)EU NZIA(2024)Mandate-based(pull)At least 40%of the annual deployment needs for strategic net-zero technologies to be met through EU-based manufacturing by 2030 Target to achieve an annual CO2storage capac

279、ity of at least 50 million tonnes by 2030 Focused on dismantling legislative gridlocks Emphasizes reducing dependency on non-EU countries for critical technologies and resources Net-Zero Technologies Manufacturing Projects(“NZT Manufacturing Projects”)will benefit from streamlined permitting procedu

280、res.NZT Manufacturing Projects that are deemed“strategic”will benefit from expedited permitting timelines.Energy(low-carbon power,energy storage,nuclear power)Transport(low-carbon fuels e.g.hydrogen,biofuels,sustainable fuels)CCUS technology Heat technologyNet-Zero Industry Tracker:2024 Edition37Pol

281、icy summary(continued)TABLE 3Policy namePolicy typePolicy objectivesKey pointsSector/technology coverageEU Carbon Border Adjustment Mechanism(CBAM)(2023)Market-based(push)Aligned to EUs Fit for 55 package target,i.e.reducing net GHG emissions by 55%by 2030 Prevent carbon leakage Encourage global dec

282、arbonization Focused on taxing carbon emissions Transitional phase(2023-2025):During the transitional phase,importers are required to report the emissions embedded in the covered goods without having to pay any financial adjustment.Full implementation(from 2026):From 2026 onwards,importers will need

283、 to purchase and surrender CBAM certificates to cover the emissions embedded in their imports,fully aligning with the EU ETS carbon price.Iron/steel Cement Fertilizers Aluminium Hydrogen Electricity (To be expanded further from 2026 onwards)EU ETS(2005)Market-based(push)At least a 55%reduction in EU

284、s GHG emissions compared to 1990 by 2030,and net zero by 2050 Cost-effective reduction of GHG emissions Focused on taxing carbon emissions “Cap and trade”principle,where thecaprefers to the limit set on the total amount of GHG that can be emitted,and this cap is reduced annually.This cap is expresse

285、d in emission allowances with one allowance giving right to emit one tonne of CO2e.Power generation and heat production Steel Cement Chemicals Refineries Glass Aviation ShippingChinas 14th Five Year Plan(2021)and Action Plan for Energy Saving and Carbon Reduction(2024)Mandate-based(pull)Reduce energ

286、y intensity by 13.5%and emissions intensity by 18%by 2025 from 2020 levels Control of coal consumption,optimization of oil and gas use,increased non-fossil energy consumption,and energy savings and carbon emission reductions across industries Reduce emissions from existing coal plants through biomas

287、s co-firing,green ammonia co-firing and CCUS technologies Steel Petrochemicals Metals Buildings TransportIndias National Action Plan on Climate Change(2008)Mandate-based(pull)Reduce GHG emissions by enhancing renewable energy production and improving energy efficiency Focused on expansion of solar e

288、nergy use and improvement of energy efficiency Renewable energy(especially solar)AgricultureJapan GX(Green Transformation)Policy(2023)Incentive-based(pull)Achieve 46%of emissions reduction compared to 2013 levels by 2030 and net zero by 2050 Includes a 10-year roadmap outlining the allocation of JPY

289、 150 trillion(Japanese yen)of public-private investment for various sectors and technologies A carbon levy starting from 2028 and theemissions trading system introducedin the future Focused on fading out inefficient coal-fired thermal power generation,including promotion of hydrogen/ammonia co-firin

290、g and direct combustion,as well as investment in upstream liquified natural gas(LNG)development in cooperation with Asian countries Promotes investment and development in electric furnaces and hydrogen reduction steelmaking Goal of 100%EVs in new passenger carsales in 2035 Renewable energy Iron and

291、steel Automotive sectorSources:U.S.Department of the Treasury.(n.d.).Inflation Reduction Act;European Commission.(n.d.).Net-Zero Industry Act;European Commission.(2024).Carbon Border Adjustment Mechanism;European Commission.(n.d.).EU Emissions Trading System(EU ETS);Climate Cooperation China.(2024).

292、China Issues Action Plan for Energy Saving and Carbon Reduction(2024-2025);Climate Action Tracker.(n.d.).India;InfluenceMap.(n.d.).GX(Green Transformation)Basic Policy and Roadmap.Net-Zero Industry Tracker:2024 Edition38Comparison of key cross-sector policiesFIGURE 210%50%100%Policy typeEmissions-re

293、duction scope(by 2030)EU NZIAEU ETSEU CBAMJapan GX PolicyUS IRAMandate-basedMarket-basedIncentive-basedNote:This figure excludes China and Indias policies,which focus on emissions intensity reduction.Source:Accenture analysis based on data from European Commission,Climate Cooperation China,Climate A

294、ction Tracker,U.S.Department of Treasury and InfluenceMap(Japan).In the last year,while the eight hard-to-abate sectors in scope have seen some progress in terms of emissions intensity reduction,their efforts have led to limited movement in their readiness scores across the five readiness dimensions

295、.Going forward,these sectors must accelerate efforts to reduce emissions intensity to achieve their respective net-zero ambitions by 2050.In order toincrease momentum,the key stakeholders across these sectors must consider the following priorities as the main impact drivers,and explore areas of coll

296、aboration:3.3 Key prioritiesKey priorities for stakeholders impacting the transition for hard-to-abate sectorsFIGURE 22While collective efforts on these key areas of collaboration can potentially enable a faster transition to net zero,the implementation of sector-specific strategies will be critical

297、 for each of the hard-to-abate sectors to successfully achieve their net-zero ambitions by 2050.Policy-makersTargets:Set short-term targets for emission reductions,maintaining long-term visionInnovation:Incentivize R&D and scaling for H2 and derivatives,CCUSTariffs:Reduce/delay tariffs on sectors wi

298、th high green premiumsEquity:Address affordability,supply security and equity in policy-makingIndustry bodiesStandards:Set carbon standards with clear thresholdsTransparency:Provide publicly available data,especially on green premium of offtake agreementsCollaboration:Promote industrial hubs and col

299、laborationDemand:Aggregate demand/offtake agreementsCompaniesElectrification:Electrify as much as possible,especially where low-carbon power isavailableCommitment:Commit to short-term emission reduction targetsInvestment:Invest in lower emission/transition fuelsCircularity:Enhance circularity throug

300、h supply chain traceability capabilitiesCarbon reporting:Build a strong digital core with accurate and auditable data on product-level carbon reportingCustomers/consumersCircularity:Embrace circular economy practices like recycling and reducing wasteTransparency:Advocate for transparency in product

301、emissions and carbon footprintsGreen products:Choose low-carbon,sustainable products to boost demand for green and energy-efficient productsNet-zero alignment:Support companies aligned with net-zero goals through purchasing choicesFinanciersDe-risk investments:Provide equity for high-risk/high-retur

302、n investments and debt for low-risk/low-return investmentsCapital efficiency:Channel funds to major production hubs where impact is biggestESG factors:Consider special ESG factors for hard-to-abate sectors and prioritize financingNovel instruments:Develop innovative financial instruments that promot

303、e capital flowCreate financial models and environmental,social and governance(ESG)criteria together that support innovations in hard-to-abate sectorsFinancial instrumentsLeverage synergies and drive technological innovationIndustrial hubs/clustersPromote transparency across stakeholders by data shar

304、ing and sustainability reportingData sharing and reportingCollaboration areasNet-Zero Industry Tracker:2024 Edition39Aviation industry net-zero tracker4The industry must prioritize sustainable aviation fuel and aircraft design improvements while advancing novel propulsion technologies to reduce long

305、-term emissions.With passenger numbers recovering to pre-COVID-19 pandemic levels,the aviation industry is encountering difficulties related to increasing emissions.Despite SAF production tripling in a year,it still accounts for a small portion of total jet fuel use,indicating the need for significa

306、nt investment.18%14%37%Increase in absolute CO2emissions(2022-2023)Decrease in emission intensity(2022-2023)Increase in demand(2022-2023)Net-Zero Industry Tracker:2024 Edition40AVIATIONKey performance data 202387,88,89,902.5%0.94 Gt CO2e8%118 gCO2e/RPKContribution to global CO2e emissionsScope 1 and

307、 2 emissions(2023)Emissions reduction(2019-2023)Emissions intensity(2023)3%2.1 times1%$5 trillionDecrease in emission intensity(2019-2023)Demand increase by 2050 in IEAs NZE scenario,compared to 2023Low-emission aviation fuel consumptionAdditional investment required for net zero by 2050Performance

308、summary Global air passenger traffic surged by nearly 37%in 2023,with total revenue passenger kilometres(RPK)reaching 94%of pre-COVID-19 pandemic levels from 2019.This highlights astrong recoveryin the industry.91 The absolute direct emissions were 0.94GtCO2e92 in 2023 an 8%reduction from 1.02GtCO2e

309、93in2019.The industry has decreased emission intensity by 3%94 in the last five years.In 2023,SAF volumes reached over 600 million litres(0.5 Mt),double the 300 million litres(0.25Mt)produced in 2022,but still only amounting to 0.2%of all aviation fuel for the year.95 SAFproduction volume is project

310、ed to triple to 0.53%96 of aviations fuel need in 2024.Energy intensity reduced by 19%from 14.9 megajoules of energy used per revenue tonne kilometre(MJ/RTK)in 2020 to 12.1 MJ/RTK in 2022.97Future emissions trajectory The industry is forecasted to reduce emissions intensity by 13%98 by 2030 and 76%9

311、9 by 2050,compared to 2023 levels,according to IATA Net-Zero Roadmap S2 scenario.The absolute directCO2e emissions are expected to be 1.12 Gt100 in 2030 and 0.47 Gt101 in 2050.In the aviation industry,75%102 of publicly traded companies consider climate change in their operational decision-making pr

312、ocesses.Net-Zero Industry Tracker:2024 Edition41Readiness key takeaways Technology2 HEFA and other biofuels are the most advanced,with TRL of 8-10,103 and are already commercially available.Battery-electric and hydrogen fuel cell technologies are in the early prototype stage,withaTRL of 4-5,and are

313、projected to become commercially viable by 2030.104Infrastructure2 100 MTPA of clean hydrogen,700 MTPA of CCUS,and 400 MTPA of biofuel are required by 2050.105 Efforts are needed to build capacity for SAF,as less than 1%106 of the 2050 SAF production capacity is currently available.Demand2 Less than

314、 1%107 of current aviation energy consumption comes from low-emissions sources.The green premium to produce SAF is estimated to be 2-5 times more expensive than conventional jet fuel.108 Identifying more potential feedstocks and diversifying SAF production could be a solution to meet the demand.Capi

315、tal1 Industry requires over$5 trillion109 in cumulative investments to achieve net zero by 2050(i.e.$179 billion110 annual investment,compared to current CapEx of$68billion111annually)Of the investment required by 2050,52%is for fuel production and 36%is for upstream renewable electricity generation

316、 by the ecosystem.112Policy3 Establishing clear blending mandates,reducing cost differentials,de-risking projects and increasing SAF usage in public-sector travel are crucial initiatives.In 2024,Japan,Brazil,Malaysia and the UK all introduced mandates for SAF entering intoforce in the coming years.S

317、ector prioritiesCompany-led solutionsMid-term(by 2030)Reduce fuel consumption through air traffic management(ATM)improvement and operationalefficiencies.Scale the use of SAF.Long-term(by 2050)Invest in R&D for low-TRL technologies and efficiency measures to reduce energy demand.Ecosystem-enabled sol

318、utionsMid-term Reduce the cost differential between SAF and fossil jetfuel(e.g.by direct or indirect subsidies).Long-term Develop refuelling/recharging infrastructure for zero-emission aircraft at key airports.Develop CCUS facilities to meet the 2050 demand.Net-Zero Industry Tracker:2024 Edition420.

319、020.040.060.080.100.120.14BAUNet zerokgCO2/RPK2023203020502050 BAUscenario0.13 kgCO2/RPK2050 net-zero scenario0.03 kgCO2/RPK0.120.1200.130.1PerformanceReadinessThe sector currently accounts for 2.5%113 of global CO2e emissions.Fossil fuels(mostly Jet-A and Jet A-1 kerosene)account for over 99%114 of

320、 fuel consumption in the industry,making them a critical driver for emission intensity.Aviation industry performanceEmissions intensity trajectory for aviation sectorTABLE 4FIGURE 23Performance metricChange(2019-2023)Industry activity(RPK)-5.9%115Emission intensity(gCO2/RPK)-3%116Total CO2e emission

321、s-8%117In 2023,industry traffic(RPKs)reached 94%118 of 2019 levels and rose 37%compared to 2022.The aviation industry has seen a significant rebound post-pandemic,with global revenues projected to surpass pre-2019 levels.Airlines have started using SAF in limited quantities,aiming to reduce their de

322、pendence on traditional fossil fuels.However,the high cost and limited availability of SAF present significant challenges for scaling its use.Among the largest SAF users in 2023,DHL119 partnered with IAG Cargo and Air France-KLM120 to sign a major 10-year agreement for the supply with TotalEnergies,

323、marking more milestones on the journey towards sustainable airfreight.Airbus121 is making progress towards zero-emission propulsion,announcing a number of collaboration agreements with global airports in 2024.New market entrants such as ZeroAvia122 are developing hydrogen-electric powertrain plans t

324、o bring a retrofitted hydrogen-powered aircraft with this ramped up capability to market by 2027.Source:IATA and ICCT.Net-Zero Industry Tracker:2024 Edition43Overall aviation activity demand is expectedto more than double by 2050,increasing by a factor of 2.1 compared to 2023.123 The Asia-Pacific124

325、 region is expected to account for about half of new passengers by 2036,driven by rapid income growth.In order to align with the Net Zero Emissions by 2050 Scenario,scaling up longer-term solutions like SAF and electric or hydrogen-powered aircraft is essential.Key strategies include diversifying SA

326、F feedstocks,establishing blending mandates,reducing cost differentials and de-riskingprojects.Decarbonization levers and top mitigation methods(MPPs NZE Scenario)FIGURE 24+182%-79%0.51.01.52.02.50Top three mitigation methods 20222050Increase in demandAircraft design improvementsNovel propulsion air

327、craft SAF:PtLsSAF:biofuels CO2 removalsSAFExpected to reduce emissions by 35-60%Aircraft design improvementsExpected to reduce emissions by 40-45%Novel propulsion technologiesExpected to reduce emissions by 5-15%CO2 emissions,Gt CO2Source:MPP.44Net-Zero Industry Tracker:2024 EditionTechnologyAVIATIO

328、N Technologies to implement aviation decarbonization levers are at different readiness levels.Three leading pathways have emerged:SAF,fuel efficiency and novel propulsion technologies.Decarbonization TRLs and year of commercial availabilityFIGURE 25Small prototype12356791011Large prototypeDemonstrat

329、ionEarly adoptionMatureConceptHydroprocessed estersand fatty acids(HEFA)(2025)48Other biofuels(2025)Improved wing aerodynamics(pre-2030)Hydrogen and hybrid electric plane(pre-2030)Power-to-liquids(PtL)(2030)Blended wing body design,open rotor,propulsion-airframe integration and battery electric plan

330、e(2030)Increase in TRL vs.2023Source:Accenture analysis derived from data from IEA ETP Clean Energy Technology Guide and MPP.Net-Zero Industry Tracker:2024 Edition45Technology pathway 1:SAFSAF includes biofuels made through various pathways such as hydroprocessed esters and fatty acids(HEFA),the Fis

331、cher-Tropsch process(FT)and alcohol-to-jet(AtJ),as well as synthetic aviation fuels made from captured carbon and low-emissions hydrogen electrolysis,known as power-to-liquids(PtL)or e-fuels.HEFA is currently the most mature,and likely to remain so until 2030,with 85%125 of announced SAF production

332、facilities using this pathway.PtL is advancing rapidly and offers long-term scalability due to its reliance on renewable resources,but costs remain high.Regulatory frameworks,like the EUs ReFuelEU initiative,are pushing for increased adoption,with targets of 70%126 SAF blends of which half(35%127)mu

333、st be PtL by 2050.Technology pathway 2:Aircraft design and air traffic management improvementsOver the past decade,the aviation industry has made huge progress in making its aircraft and flight procedures more efficient.Within normal fleet turnover cycles,the replacement of retired aircraft with new,more efficient aircraft leads to regular efficiency improvements.Fuel efficiency measures in aviati