Alliance

Alliance for Industry Decarbonization

About

With more than 30% of global greenhouse gas emissions and nearly 40% of global energy consumption, the industrial sector is the second largest emitter after power generation. At the same time, the demand for energy and industrial products is forecasted to increase tremendously. Without increased emission reduction efforts within the industrial sector, the goal of limiting global temperature rise to 1.5 Celsius stays unreachable.

The Alliance for Industry Decarbonization aims to decarbonize industrial value chains and accelerate net-zero ambitions in accordance with the Paris Agreement. The Alliance’s founders and partners, consisting of private and public organizations and stakeholders operating in energy-intensive sectors, commit to collaborate toward the common vision of a green future. The Alliance members believe in the power of partnerships based on honest dialogue and concrete actions.

The International Renewable Energy Agency (IRENA) coordinates and facilitates the activities of the Alliance based on its vast experience in hosting multi-stakeholder platforms. Siemens Energy co-chairs the Alliance leadership alongside EMSTEEL and Knowledge Partner Roland Berger supporting the buildup and implementation.

COP28
Top executives and knowledge partners of the Alliance for Industry Decarbonization held a roundtable at COP28 and committed to rise ambition towards decarbonization through tangible achievements by 2030.

Alliance Objectives

The objective of the Alliance for Industry Decarbonization is to facilitate dialogue on industry level and increase cooperation to help companies to develop solid decarbonization strategies and implementation plans, aligned with their countries’ net-zero and decarbonization commitments. The Alliance is to serve as a global platform for enhancing dialogue through exchange of insights, experiences and best practices.

Focus areas

Through common goals, willingness to change, and strong collaboration, industrial emissions will stop rising. Ultimately, only collective efforts of the industrial sector will accelerate the achievement of a net-zero future.

The Alliance operates under the following focus areas:

Members

Members

Ecosystem knowledge partners

The growing number of members and eco-system knowledge partners highlights that an international, multi-stakeholder platform enabling exchange and collaboration to tackle the decarbonization of the industrial sector was long overdue.

How to join

To apply to become a member of the Alliance for Industry Decarbonization, please fill out the membership form below and email it to afid@irena.org.

There is no membership fee.

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“Climate action needs industry leaders.”

“We have less than a decade left to secure a fighting chance for a 1.5°C world. Climate action needs industry leaders. This Alliance stands for the growing commitment of global industry to act on decarbonization.”

la camera
Francesco La Camera Director-General of IRENA

“There is no alternative to the energy transition.”

“There are no reasons or excuses to wait for action. All technologies needed are available and the recent IPCC report has made it clear that without major changes global warming will increase more than 3.2 °C. There is no alternative to the energy transition – we need to act together for just, ambitious implementation now.”

Christian Bruch
Christian Bruch President and Chief Executive Officer of Siemens Energy

Events

    Enhancing Commitment to Deep, Rapid and Sustained Emission Reductions – Alliance for Industry Decarbonization CEO High Level Dialog

    AFID major announcements during COP29


    Baku, Azerbaijan, 16 November 2024 – Today, during a pivotal CEO high level dialog on coordinated actions towards raising aspiration for decarbonization, aligned with global and national decarbonization at COP29, the Alliance for Industry Decarbonization (AFID), co-chaired by Siemens Energy and EMSTEEL, has announced four strategic commitments to address the challenges related to decarbonization of industrial sectors.

    CEOs have discussed progress under the Decarbonization Commitment and adopted enhanced joint Targets to 2030. Members of AFID have individual plans that combined aim to reduce 54% of direct and indirect greenhouse gas (GHG) emissions and grow the installed renewable capacity 183 gigawatts (GW) from 2023 to 534 GW in 2030. Moreover, Alliance member have committed to almost double installed green hydrogen, significantly increase bioenergy with CCUS solutions, increase workforce re-skilling from currently 20% to 99% and significantly boost investments in energy transition projects to more than USD 124 billion by the end of this decade.

    AFID in collaboration with Net Zero Technology Centre has launched an Innovation Competition to identify and accelerate the deployment of decarbonization technologies for AFID beneficiary companies with a focus on high TRL innovations. Competition is open to energy transition technology innovators around the world. The top finalists will pitch their innovations to judges in 2025, with winners offered to pilot technology with AFID beneficiary companies.

    AFID has collectively endorsed joint statement of global decarbonization initiatives namely Scaling International Assistance for Industry: COP29 Global Commitment and ITA Open Letter on Demand Stimulating Policies.

    IRENA Director-General Francesco La Camera said, “The Alliance continues to show what collective ambition, and strategic action can achieve in advancing decarbonization. The commitments made by industry leaders today at COP29 set a clear path towards reducing emissions by 54% and accelerating renewable energy capacity. This milestone strengthens the Alliance’s role as a catalyst for sustainable industry transformation, pushing forward innovation, more ambitious targets, and investments in energy transition projects. By fostering cross-sector and global collaboration, we are advancing not only our 2030 targets but also the critical role that industry must play in achieving a 1.5°C scenario.”

    Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer of EMSTEEL and co-chair of AFID, commented: “As we stand at the crossroads of climate action, the commitments announced by the alliance today reflect a collective and unwavering dedication to accelerating the transition to a sustainable, low-carbon future. Our enhanced targets to reduce greenhouse gas emissions, expand renewable energy capacity, and lead in green hydrogen and bioenergy solutions are vital steps toward achieving a carbon-neutral world by 2050.

    For EMSTEEL, as the UAE’s largest steel and building materials manufacturer, and as co-chair of this ground-breaking alliance, these commitments not only represent a significant leap in our shared responsibility but also demonstrate the power of industry collaboration in driving systemic change. By focusing on scaling innovative technologies, re-skilling our workforce, and making bold investments in energy transition, we are empowering industries worldwide to meet the challenges of decarbonization.

    “AFID’s collective ambition will play a crucial role in shaping the trajectory of global emissions reductions, and together, we are proving that sustainability and economic growth can and must go hand in hand.”

    Mr. Christian Bruch, Siemens Energy Chief Executive Officer and co-chair of AFID said, “The announcement by the members of the Alliance at COP29 are a clear commitment for a practical approach to achieving a more sustainable future. I hope this pledge will serve as a beacon to encourage further collaboration amongst industry leaders in accelerating the deployment of cutting-edge decarbonization technologies and drive the energy transition forward. ”

    Mr. Luca Corradi, Net Zero Technology Centre Chief Technology Officer Luca said, “Net Zero Technology Centre is thrilled to be involved in this significant Alliance, and we are eager to contribute to the delivery of the innovation competition. Our mission has always been to accelerate the development and deployment of net zero technology, and we are excited to collaborate with AFID members across the pillars of the alliance. Together, we will work to identify and scale up innovative technologies for adopters within the AFID. ”

    On the run up to COP29, AFID has published new reports:

    Solutions to decarbonize heat in the steel industry highlights key solutions for decarbonizing steel manufacturing, including low-carbon fuels, renewable electrification, and waste heat recovery. It calls for collaboration among governments, industry, and researchers, along with investment in research, pilot projects, and workforce training.

    Green hydrogen: A cross-industry dialogue for sustainability underscores green hydrogen’s essential role in decarbonizing transport, power, and industry, calling for global cooperation on standards and regulations to accelerate adoption.

    Accelerating decarbonisation using bioenergy with carbon capture, utilisation and storage. This report highlights the critical role of carbon capture and storage (CCS) and bioenergy with CCS in achieving global decarbonization goals, covering their status, costs, prospects, and policy landscape, with global case studies included.

    Advancing bioenergy with carbon capture, utilization and storage. Policies, regulations, MRV and certification examines BECCUS integration for the 1.5°C climate target, addressing key policies, regulations, and standards for sustainable biomass sourcing and CO2 storage. It emphasizes MRV standards to strengthen carbon market transparency and offers guidance for policymakers and industry on advancing the low-carbon transition.

    The Alliance is urging new members to sign up and join their common vision to speed-up the energy transition. Membership is open to public and private firms and stakeholders operating in energy-intensive sectors ready to decarbonize their activities now.


    AFID at COP29

    AFID will host a CEO High Level Dialog, titled: Enhancing Commitment to Deep, Rapid and Sustained Emission Reductions – Alliance for Industry Decarbonization on 16 November 2024 from 17:00 to 18:00 pm at the Trade and Investment House in Azpromo Pavilion in the Green Zone.

    The high dialog will bring together Executive Leaders to deliver key messages and jointly address the challenges related to decarbonization of industrial sectors. CEOs will discuss progress under the Decarbonization Commitment and adopt enhanced joint Targets to 2030. This high-profile gathering of top executives demonstrates an unwavering commitment to driving the decarbonization of the industry and taking it to new heights. Discussion will center around the urgent need for enhancing commitment to deep, rapid and sustained emission reductions across different industry sectors.


    IRENA 28th Council – Accelerating renewable demand in industries and transport to achieve the COP28 Tripling RE pledge

    On October 24, 2024, the Alliance for Industry Decarbonization (AFID) participated in the session titled "Accelerating renewable demand in industries and transport to achieve the COP28 Tripling RE pledge” as part of IRENA’s 28th Council. The session facilitated exchange among the IRENA Members and private sector on how to achieve the COP28 goal of tripling renewable energy by 2030, with a particular emphasis on decarbonizing industries and transport.

    The IRENA Director-General introduced the topic, emphasized the "moral imperative" of renewable energy investment, stating, “…the decarbonization of this sector efficiently and in time. It is not merely an environmental imperative. We say this morning is a moral imperative, but it's also an economic and social opportunity.” He outlined IRENA's ongoing support in fostering industry partnerships and advancing decarbonization technologies. The Director General strengthened the role of AFID to facilitate the dialogue at industry level and increase cooperation to help companies develop solid decarbonization strategies and implement plans aligned with the country net zero targets.

    Mr. Roland Roesch, Deputy Director, IRENA, presented on the IRENA report for Decarbonizing the hard to abate sectors, underscoring the importance of green hydrogen and electrification as viable pathways to net zero, particularly in sectors like heavy-duty transport, aviation, and steel manufacturing.

    Mr. Khaldoun Bouacida, Managing Director, BASF, discussed BASF’s approach to carbon reduction through renewable technologies, highlighting a project for CO2-free steam generation funded by the German government. “…we are secure and also funding for the world's largest industrial heat pump for CO2-free steam generation. Again, another technological breakthrough and again another funding from the German government and again something that we will duplicate to of course other industries" he highlighted.

    Mr. Dimitrios Dimitriou, Vice President, ESG and Sustainability, EMSTEEL, AFID Co-Chair, started his speech emphasizing the Alliance’s role in fostering global dialogue on industrial decarbonization and outlined the Decarbonization Commitment Joint Targets of AFID members. Representing EMSTEEL, Mr. Dimitrios highlighted that the company has reduced emissions by 30% since 2019 and is on track for further improvements by 2030 through fuel switching, carbon capture, and innovations like green hydrogen.

    China highlighted significant advancements in electric vehicle (EV) infrastructure, with over 13.4 million charging stations now available nationwide. The country is also advancing hydrogen technology to support decarbonization in transportation, focusing on smart charging infrastructure with storage capabilities to sustain emission reductions.

    Germany underscored the importance of market creation for green materials, especially in construction, and is implementing public procurement laws that mandate green steel and cement use. Standards have been developed to ensure consistency and foster widespread adoption of green materials across industries.

    The UAE shared its innovative approach to decarbonization, leveraging AI for energy efficiency and implementing sustainable aviation fuel and maritime policies. The UAE is investing in infrastructure like walkable areas, cycle lanes, and smart grids to promote a low-carbon public transport shift and support energy diversification goals.

    The United States of America highlighted its legislative initiatives, such as the Inflation Reduction Act, which aims to accelerate clean hydrogen and carbon management technologies. The U.S. also emphasized the need for a global clean hydrogen certification standard to facilitate international trade and detailed its efforts through the International Partnership for Hydrogen and Fuel Cells in the Economy to lead hydrogen standardization efforts.

    India emphasized its commitment to sustainable growth, aiming to reduce emission intensity by 45% and reach net-zero carbon emissions by 2030. To encourage renewable energy in energy-intensive sectors, India has implemented policies like the steel scrap recycling policy and the Perform, Achieve, and Trade mechanism, while industry leaders like Tata Steel are advancing green steel initiatives.

    Japan focused on collaborating with ASEAN countries to develop sustainable fuel systems and foster regional partnerships for renewable technology advancements.

    Italy detailed its three-tiered hydrogen investment strategy, including large-scale European, national, and regional hydrogen projects. Italy is constructing a hydrogen pipeline from North Africa to Europe to support renewable hydrogen production and distribution, aligning with EU decarbonization goals.

    The UK outlined its plans to transition industries away from fossil fuels by replacing 50 terawatts of fossil energy annually by 2025. The UK government is also making significant investments in clean power infrastructure and planning reforms to expedite renewable energy deployment and reduce grid connection delays.

    Member countries and stakeholders emphasized the need for continued collaboration to overcome barriers to renewable energy adoption in industry and transport. They identified critical next steps, including creating enabling infrastructure, scaling up green hydrogen production, and developing a skilled workforce. The session concluded with a call for actionable commitments to support the COP28 goals and further decarbonization across hard-to-abate sectors.

    AFID at Climate Week NYC 2024 – Decarbonizing Hard-to Abate Sectors with Renewables: Accelerating Net-Zero Ambitions

    New York, United States of America, 25 September, 2024 – Leaders from the Alliance for Industry Decarbonization (AFID) convened a high-level roundtable discussion during New York Climate Week to share industry experiences and discuss what must be done to decarbonize hard-to abate sectors. The event, hosted by AFID and supported by Topsoe, brought together industry executives, policymakers, and experts to share insights and strategies for accelerating the transition to net-zero emissions.

    Key Highlights:

    • Francesco La Camera, Director-General of IRENA, set the stage for the event by emphasizing the need for radical action and international collaboration. He welcomed that AFID aims to increase its renewable generation capacity target from 2x last year to 2.6x by 2030, reaching 433 gigawatts. And noted that AFID’s target for emission reduction under scope 1 AND 2 is set to 53% by 2030.
    • H.E. Lars Aagaard, Minister for Climate, Energy, and Utilities, Denmark, stressed the urgency of electrification to transition away from fossil fuels. "We need to electrify whatever we can, and the borders for that are changing all the time," he remarked. He underscored the potential of green hydrogen as a key enabler for decarbonizing hard-to-abate sectors and the need for clear targets, supportive regulations, and private sector engagement to accelerate the transition. He also emphasized the role of policy in creating frameworks that incentivize investment and innovation in green technologies.
    • H.E. Engineer Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL and Co-Chair of AFID, highlighted the progress in reducing emissions from advanced economies while acknowledging the ongoing challenge of rising global emissions. He emphasized the need for innovative technologies and energy choices to decarbonize the industrial sector, particularly in emerging economies. He showcased EMSTEEL's efforts in adopting low-carbon technologies, investing in renewable energy, and piloting green hydrogen projects. He stressed the importance of collaboration and knowledge-sharing to drive the adoption of green steel and other sustainable materials.
    • Mr. Dieter Vollkommer, Global Head of Sustainability, Siemens Energy and Co-Chair of AFID emphasized that "Climate change is not a technology issue, it's a scaling issue. We need to scale the existing technologies." He also highlighted the importance of an enabling ecosystem, emphasizing the growing role of the hydrogen economy and the need to establish a reasonable price for hydrogen.

    The roundtable discussion focused on key themes, including:

    • Accelerating the Transformation: Participants discussed the challenges, solutions, and progress toward decarbonization, emphasizing the need for collaboration, investment, and policy support. The discussion noted the importance of meeting renewables demand, cross-sectoral collaboration, addressing the "green premium" and creating market conditions that favor green solutions, like a coherent low-carbon molecules market that optimizes synergies and carbon sink allocation.
    • Financing the transition: Speakers highlighted the need to find mechanisms to ensure the sharing of benefits, risks, and costs and the strong need to create demand signals to create investments. Speakers shared solutions like carbon pricing, incentive systems like the IRA (The Inflation Reduction Act), and long-term offtake purchase agreements and remarked on the importance of bringing the CAPEX to overcome investment needs.
    • Policy and Regulatory Aspects: Speakers highlighted the importance of supportive policy measures, the need for mandates, support permitting for projects, and an enabling policy environment to accelerate the deployment of decarbonization technologies.
    • Decarbonization Solutions: Industry leaders shared their experiences in advancing technologies like renewables, green hydrogen, energy efficiency, and bioenergy with CCUS for industrial decarbonization. Participants discussed the necessity for comprehensive strategies that include enhancing energy efficiency, promoting circular economy principles, and developing robust supply chains for critical materials. They also discussed the importance of human capital development, R&D, the key aspect of natural resources, and innovation in achieving net-zero goals.

    Overall, the discussions highlighted that addressing the challenges of decarbonizing hard-to-abate sectors requires collective action, innovation, and commitment from all stakeholders. By harnessing renewable energy solutions and fostering collaboration, along with prioritizing energy efficiency as a low-hanging fruit, partners will lead the charge in transforming industries for a sustainable future. Furthermore, supportive regulations and policies can help reduce costs and facilitate this essential transition.

    27th Council: Industry Driven Partnerships for Accelerated Energy Transition – AFID

    On June 14, 2024, the Alliance for Industry Decarbonization (AFID) participated in the session "Industry-Driven Partnerships for Accelerated Energy Transition” within IRENA 27th Council meeting. The session facilitated exchange among the IRENA Members and private sector on how the net zero and decarbonization goals set at the national level could be practically supported by the industry for an accelerated energy transition.

    On June 14, 2024, the Alliance for Industry Decarbonization (AFID) participated in the session "Industry-Driven Partnerships for Accelerated Energy Transition” within IRENA 27th Council meeting.

    The session facilitated exchange among the IRENA Members and private sector on how the net zero and decarbonization goals set at the national level could be practically supported by the industry for an accelerated energy transition.

    The IRENA Director-General introduced the topic, underlining the pivotal role of industrial sectors in achieving net-zero emissions, as they account for a significant portion of global energy consumption and CO2 emissions. The Director-General also stressed out the need for the power sector to undergo significant decarbonization, which would involve an increase in renewable energy share to 91% by 2050 and highlighted the importance of industry collaboration and the role of technological innovation in meeting global energy demands sustainably.

    Key points from the session included:

    • The necessity for extensive decarbonization across various sectors to combat climate change effectively.
    • The role of multi-stakeholder partnerships in fostering innovation and sharing best practices.
    • The urgent need for proactive regulations and market adaptations to support the transition to renewable energy sources.
    • The importance of technological innovation.

    Mr. Khalid Bin Hadi, Managing Director from Siemens Energy, AFID Co-Chair, emphasized the significant progress and unity within the alliance. Since its inception, over 70 key players have joined forces to tackle industrial emissions, which represent a substantial portion of global greenhouse gas outputs. He highlighted the crucial role of emerging technologies, which are expected to contribute around 45% of emission reductions, in achieving ambitious decarbonization goals. Mr. Bin Hardi shared that governments are crucial in fostering a supportive environment for decarbonization, which includes implementing clear regulations, streamlining permits, and providing financial support. Mr. Bin Hadi urged private sector leaders and government decision-makers to actively support the industrial sector's decarbonization initiatives.

    Spain shared their national strategy focusing on ambitious renewable energy goals and the development of electrolyzers to support industrial decarbonization by 2030. Spain highlighted the alignment with European directives and significant financial incentives to foster renewable hydrogen production.

    India shared that the country is firmly committed to the energy transition agenda, which prioritizes energy affordability, accessibility, and security within its development plan. India employs an inclusive approach involving civil society, industry, and governments at local, state, and federal levels in its energy transition. Indian industry is actively involved in global energy transition initiatives like AFID, and the country is also exploring innovative solutions for energy storage, transport, and making global renewable energy supply chains competitive. The private sector is capitalizing on government-provided policy incentives to accelerate the energy transition at the ground level, enhancing decentralized renewable energy solutions.

    The Republic of Korea (South Korea) expressed appreciation for IRENA's efforts to prioritize industry-driven decarbonization globally, particularly AFID. The country highlighted its significant commitment to supporting the industry's transition to low-carbon operations with a comprehensive investment plan. This plan includes about $300 billion in public financing by 2030, the establishment of a Future Energy Fund to expand clean power, and a Climate Technology Fund to advance climate technologies. South Korea emphasized that these initiatives are designed to catalyze investment and mitigate risks in expanding renewable energy infrastructure, also supporting SMEs in carbon-intensive sectors through the Korean Neutral Leadership Plan project.

    Japan emphasized the critical role of technology innovation in the industry sector to promote clean energy investment and facilitate emerging clean energy technologies. To support private sector activities, Japan highlighted their domestic approach, which involves a synergy of publishing upcoming regulations and providing financial support to the private sector before these regulations take effect. Japan detailed its experience with issuing climate transition bonds and implementing financial support for R&D in innovative technologies, planning to launch an emission trading system by 2026 and a green transformation surcharging scheme by 2028.

    A session exploring innovative financing solutions to tackle commercial barriers in global industrial decarbonization

    On May 8, 2024, the Alliance for Industry Decarbonization (AFID) organized the session "The Industry Perspective: Innovation in Financing the Global Industrial Decarbonization" at the AIM Congress, ADNEC, Abu Dhabi. The event brought together representatives from IRENA, the Emirates Development Bank (EDB), Gulf Cryo, and Siemens Energy to discuss strategies and innovative financing approaches to overcome the barriers to achieving global industrial decarbonization goals. This session highlighted the new financing platform facilitated by IRENA, the Energy Transition Accelerator Financing (ETAF) Platform, which aims to advance the global energy transition in developing economies.

    Facilitated by IRENA, AFID unites private and public entities in energy-intensive sectors to accelerate net-zero transitions in line with the Paris Agreement. During the session, Rahul Oberoi, Executive Vice President at EDB, explained the bank's scoring system for renewable energy projects, which prioritizes those that contribute to reducing carbon footprints, work towards net zero initiatives, and align with the Sustainable Development Goals (SDGs).

    Elie Adiamy, Group Director at Gulf Cryo emphasized the need to develop robust business opportunities between emitter companies that want to decarbonize their processes and the decarbonization solution developers, such as CCUS developers. He also stressed the need for a streamlined regulatory framework, advocating for a "one-stop-shop" approach that would significantly reduce bureaucratic hurdles and ensure timely project implementation.

    Sobh Benmaamar, Head of Strategy from Siemens Energy reinforced the need for industry agility in both technological and financial innovation to accelerate renewable adoption. She emphasized Siemens global innovation centers, which work to develop efficient, end-to-end solutions addressing aging infrastructure, optimizing supply chains, and improving energy efficiency. Siemens collaborative approach, including partnerships with governments and other stakeholders, is key to identifying new opportunities for technological and financial innovation.

    In summary, the session highlighted the critical importance of robust financing mechanisms, enhanced financial policy integration, and strong industrial networks to streamline and expedite the effective financial adoption of energy technologies.

    The Industry Perspective: The Global Decarbonization of Industries

    On April 18th, 2024, the Alliance for Industry Decarbonization (AFID) organized an event on ‘ The Industry Perspective: The Global Decarbonization of Industries’ at IRENA Pavilion during the World Future Energy Summit (WFES) – at ADNEC (Abudhabi).

    This event provided an in-depth look at the global effort to decarbonize industrial value chains and accelerate net-zero ambitions. Speakers from Topsoe, Subsea 7, Net Zero Think and IRENA shared insights on how international organizations and the private sector collaborate, showcasing successful stories and recommending policies to enhance global decarbonization efforts.

    Despite the global efforts for decarbonization shared during this event, today’s business leaders are under pressure to decarbonize their business models, assets, and infrastructure to ensure a sustainable and prosperous future. But leaders are struggling with economic uncertainty, higher interest rates, inadequate supply chains, global competition, and political conflict. The discussions underscored a robust commitment from industrial partners and stakeholders in energy-intensive sectors to collaborate towards a common vision of a green future. The session provided insights into how these collective efforts support the decarbonization of industrial value chains and accelerate net-zero ambitions in line with the Paris Agreement, showcasing The Alliance for Industrial Decarbonization as a key example in this regard. It also facilitated an open dialogue, sharing valuable lessons learned and addressing the common challenges that obstruct a fully decarbonized world.

    Fourteenth session of the IRENA Assembly: Alliance for Industry Decarbonization (AFID)

    On April 16th, 2024, the Alliance for Industry Decarbonization (AFID) organized the ‘Fourteenth session of the IRENA Assembly: AFID’ at St Regis Hotel, Abu Dhabi. The event presented a set of actions and joint initiatives for the short and long-term plan of the Alliance.

    Facilitated by IRENA, AFID unites private and public entities in energy-intensive sectors to expedite net-zero transitions in line with the Paris Agreement. The event aims to present a set of actions and joint initiatives for short and long-term plans. Opening the session, Gauri Singh, Deputy Director General of IRENA, said that decarbonising the industrial sector is crucial since industry is responsible for over 30% of global greenhouse gas emissions and nearly 40% of global energy consumption. “As demand for energy and industrial products rises, we must ensure emission reduction targets keep pace with limiting global temperature rise. Decarbonising industry represents a transformative opportunity, offering sustainable revenue streams and job creation for young people seeking to integrate sustainability into their careers. Realising this potential requires fundamental changes in markets and businesses, driven by leadership and commitment," she concluded.

    Kumar Singh, CEO, Net Zero Think says that investors would readily engage in new energy transition ventures if the returns were well-defined. “Everyone is trying to look for returns but unfortunately, it's all speculative. There is lack of clarity, which is hindering investments, because investors want to invest where returns are clear. We need to fasttrack regulations and policies as the first step in laying the ground for enhancing investments in new transition technologies.”

    In his closing remarks, David Frans, Senior Partner, Roland Berger, says that while the technology is in place and while ambition is steadily growing, “Governments need to be consistent in their policies for the transition to happen at the desired scale and speed.”

    In summary, the key topics of this session included the necessity for robust financing mechanisms to support the tripling of renewable energy deployments, and the development of concrete business cases to secure essential funding. Further discussions also underscored the importance of regulatory clarity and global consistency in defining and maintaining the 'green' labelling of renewable projects as geographic discrepancies persist. Finally, the participants emphasized the critical role of collaborative platforms and policy frameworks, integrating advanced technologies, circular economy principles, and CO2 trading systems to drive forward industrial decarbonization effectively, and noted that the cost of inaction today could lead to significant economic and environmental challenges in the future, underscoring the urgent need to advance decarbonization efforts globally.

    Alliance for Industry Decarbonization at COP28, Dubai

    CEO Roundtable: Accelerating implementation of Industrial Decarbonization

    Over 60 top executives and knowledge partners of the AFID held a roundtable at COP28 and committed to raise decarbonization ambitions through tangible achievements by 2030. Members of AFID have individual reduction plans that combined aim to reduce 51% of direct and indirect greenhouse gas (GHG) emissions and grow the installed renewable capacity from 84 gigawatts (GW) today to 187 GW in 2030. Moreover, Alliance members also commit to almost double installed green hydrogen, significantly increase bioenergy with CCUS solutions, increase workforce re-skilling from currently 15% to 91% and significantly boost investments in energy transition projects to more than USD 50 billion by the end of this decade.

    Renewables

    AFID held “How to implement renewable capacity in emerging and mature markets” event. Panelists underlined the importance of raw materials and supply chain bottlenecks, advantages of renewables corporate sourcing, challenges of system integration, permitting, and the role of youth in decarbonization.

    Green Hydrogen

    AFID held the “Green Hydrogen Unveiled: A Cross-Industry Dialogue for Sustainability”. The member companies showcased green hydrogen production and transportation projects. Within the interactive session “Hydrogen Horizons: Navigating Sustainable Transformation Across Industries”, panelists emphasised the need for supportive policies, importance of standards, and demand drives to stimulate market growth and decarbonization across industries.

    Bioenergy with CCUS

    AFID advanced discussions on “Accelerating Decarbonisation Through Bioenergy with CCUS”. The event showcased novel technology solutions, addressing barriers and providing an outlook on the way forward to use bioenergy in combination with Carbon Capture, Use and Storage (CCUS). The group also highlighted the important role of policies to stimulate bioenergy with CCUS for the decarbonization of industrial sectors.

    Heat Process Optimization and Integration

    AFID addressed “Importance of Decarbonizing Heat in Industrial processes”. The members of the Alliance and partners have discussed operational efficiency within their specific industrial processes. They focused on strategies that foster technology innovation and create a supportive ecosystem that incentivizes the widescale integration of low-carbon heat technologies across diverse industrial sectors.

    Human Capital

    AFID launched the digital platform MyChange at the event “Human Capital: Empowering the energy transition: unleashing human capital through collaborative private sector engagement”. The event showcased ‘My Change for AFID’, aiming to raise awareness of the challenges connected to the SDGs, the Agenda 2030, and to help AFID Members to deepen their knowledge in the fields of energy transition and decarbonization, sustainable development, and digital transformation.

    Finance

    AFID held the event “Empowering the energy transition: providing enough investment through collaborative private sector engagement”. Discussion centered on the key challenges and opportunities to unlock investments in the context of the urgent need to invest in renewable energies to enable the achievement of the UN 2030 Agenda.

    Strategies & technological solutions for achieving carbon emissions reduction under the -1.5 C° scenario

    On 18th September 2023, the Alliance for Industry Decarbonization (AFID) organized an event on ‘Strategies & technological solutions for achieving carbon emissions reduction under the -1.5 C° scenario’ was held on the side line of New York Climate Week, hosted by Eni. Industry leaders gathered at the event to share their vision and experiences of strategies and technological solutions for achieving carbon emissions reduction under the 1.5°C scenario. It also addressed industry views on policy measures to secure green financing and promote the energy transition through enhanced digitalization, smart decentralization and technology advances, and human capital.

    The event fostered partnerships through initiating dialogue and taking tangible actions that are crucial for industrial stakeholders to best address the challenges and navigate opportunities of clean energy transition. The meeting also advanced exchanges and collaboration to accelerate global climate action. The participants voiced the industry’s views on the importance of coherent, comprehensive, coordinated, and thoughtful policies to ensure a safe transition aimed at having a fully functional, reliable, and efficient energy system.

    The speakers shared their opinions on policy measures to secure green financing, trigger industry’s decarbonization and promote the clean energy transition through enhanced digitalization, smart decentralization and technology advances (renewables, green hydrogen, bioenergy with CCS, heat optimization) and human capital. AFID speakers were Mr. Marco Margheri, Head of USA International Relations Office, Eni, Mr. Rich Voorberg, Siemens Energy, President, North America, Mr. Wouter de Groot, VP Sustainability, FLSmidth, Mr. Bruce Douglas, CEO, Global Renewables Alliance, Mr. Nour Sobh, Senior Advisor - Corporate Energy Sourcing, Eurelectric, and Ms. Mikki Corcoran, VP Sustainability, SLB.

    It was highlighted during the event that while the energy transition undoubtedly requires time, there is significant potential to implement many of the available technology options today. Upward trends in the deployment of these solutions demonstrate that the technical and economic case is sound. There was a general consensus that comprehensive policies are needed across all sectors to ramp up deployment. This is besides instigating the systemic and structural overhaul required to realise climate and development objectives.

    Capacity building workshop on quantifying and reporting greenhouse emissions

    On 4th September 2023, the Alliance for Industry Decarbonization (AFID) organized a virtual workshop titled “Capacity building workshop on quantifying and reporting greenhouse emissions” in collaboration with AFID members: ISO, IEC, TUV SUD, Bureau Veritas, and IPIECA. The knowledge members of AFID navigated new opportunities during this capacity building workshop to support companies in their efforts on quantifying and reporting greenhouse emissions which is a significant step towards the development of decarbonization strategies and implementation plans.

    A good number of industrial firms and stakeholders operating in energy-intensive sectors have furthered the discussion by sharing their ambition to decarbonize their activities along their value chains and companies that have knowledge and expertise in the deployment of energy transition technologies. All reporting companies serve as role models for other members of the AFID but also to many large, medium, and small companies around the world.

    It was stressed that AFID has over 50 members and knowledge partners; about half of the AFID members published reports on their companies’ emissions and reduction targets until 2030 on Scope 1 & 2 and less members reported on Scope 3. AFID Speakers were Daniel Trillos, Vice-Chair of ISO's technical committee on environmental management, Bratin Roy, Sr. Vice President Sustainability TÜV SÜD, Khushboo Oswal, Business Line Manager Climate Action Certification, TÜV SÜD, and Ahmed Samir ELBERMBALI, Sustainability Market Leader, Bureau Veritas.

    The workshop concluded with highlighting the need to accelerate the agreed global actions to decarbonize industrial value chains and promote understanding of renewables-based solutions and their adoption by industry with a view to contributing to country-specific net-zero goals.

    Session Summary: Accelerating net-zero ambitions through clean hydrogen for decarbonization of industrial value chains

    The side event on “Accelerating net-zero ambitions through clean hydrogen for decarbonization of industrial value chains” held at CEM14/MI-8 in Goa on 19 July 2023, featured presentations on international collaboration platforms to foster decarbonization of industrial value chains as well as a panel discussion on international standards, conformity assessment, and regulations.

    IRENA informed about progress under Alliance for Industry Decarbonization that aims to facilitate dialogue on industry level and increase cooperation to help companies to develop solid decarbonization strategies and implementation plans, aligned with their countries’ net-zero and decarbonization commitments. The Alliance is to serve as a global platform for enhancing dialogue through exchange of insights, experiences and best practices.

    UNIDO presented Global Programme For Hydrogen In Industry which powers net zero industrialization and economic development in the Global South and contributes to accelerate local green hydrogen production & application, global trade and decarbonization.

    The Net-Zero Industries Mission (NZIM) presneted ongoing collaboration across countries, government, and industry to drive and accelerate the adoption of decarbonisation technologies by the hard to abate, energy intensive industries. The Mission’s goal is to catalyse the development and demonstration of cost competitive solutions for the efficient decarbonisation of hard to abate energy intensive industries worldwide by 2030.

    Australia informed about its policy landscape and the Clean Hydrogen Mission where the country is taking a lead role on the Storage and Distribution Working Group. Australia presented a global interactive map of collected case-studies with best practice in innovation, development, and demonstration of hydrogen storage and distribution.

    Following the presentations on international collaboration platforms, the speakers from IPHE, IEC, IRENA, Hydrogen Council and Tata Steel continued panel discussion on standards and conformity assessments as interdependent determinants of the development of green hydrogen and thus industry decarbonization. They noted about increased international confidence in green hydrogen and lowered costs. Panellists urged that these determinants are accelerated, and emphasised that standards require greater awareness, the inclusion of developing countries, and focus on the role of guiding governments to create enabling environments. Regulations and certificates were also underscored as essential, especially for facilitating the trade of green hydrogen.

    Innovation was another key topic during the event, and the importance of standards for innovation, as well as renewable energy, was noted. It was highlighted that innovation will be essential for supporting the growing hydrogen workforce; additionally, anticipated innovations were shared, including the injection of hydrogen into blast furnace. Throughout the presentations and panel discussion, the value of international collaboration was stressed, especially through knowledge sharing.

    It has been concluded that standards, conformity assessment, and regulations – also known as Quality Infrastructure (QI) – play a fundamental role for safe hydrogen production, trade and use. The fundamental rules, standards and certifications have been defined to enable the safety of infrastructure and its installation, storage, use, repair/maintenance and transport of hydrogen, including GH2. All countries with hydrogen initiatives are encouraged to participate in international standards setting and use existing infrastructure elements such as International ISO and IEC Standards, as well as international certifications such as IECEx. They help industry to develop the quality and safety infrastructure needed once GH2 projects become operational, largely avoiding the need for investments in technical conformity assessment infrastructure.

    The Alliance for Industry Decarbonization powers Global Panel Discussion at World Utilities Congress

    The Alliance for Industry Decarbonization was represented at the World Utilities Congress hosted by Alliance member TAQA. The Congress, which ran from 8-10th May 2023, brought together energy leaders, policymakers, innovators, and industry professionals from around the globe to share perspectives on the trends, opportunities, and challenges of the industry in pursuit of a secure and sustainable utilities future.

    The Alliance powered the Global Panel Discussion on Exploring the role of utilities in decarbonising industrial demand. Amidst the urgent need to decarbonize industry, the panel discussion considered how cooperation between utilities and industry can enable the utilities industry to assume its critical role in this regard. There was a focus on how green hydrogen and carbon capture and storage can be harnessed, the use of demand response programs, and how energy-efficient technologies and practices can be developed and implemented.

    The Deputy Director-General of IRENA, Gauri Singh, emphasised that: “Targets must be implementable, achievable and tangible.” Among other key messages was the consensus that collaboration throughout and beyond industry must be optimised to navigate the complexities of industrial decarbonization, to produce tangible impacts and to account for the interests and challenges of stakeholders. The value of best practices and lessons learnt from experiences with technologies in informing the way forward was also emphasised. Another key message that emerged was the importance of creating a conducive and enabling environment for the utilities sector to adequately contribute to decarbonizing industrial demand, with an emphasis on policy frameworks and effective innovation.

    The Alliance for Industry Decarbonization at the Hannover Messe

    The Alliance for Industry Decarbonization powered a session at the Hannover Messe which took place from 17th-21st April 2023. The world’s leading industrial fair brought together key stakeholders from within the sector and beyond to convene under the theme of “Industrial Transformation” to which decarbonization is a key issue.

    The session Decarbonizing industries – Tackling the tough stuff was hosted by co-founding partner Siemens Energy and began with technology pitches from start-ups focused on scaling technologies to reduce Europe’s natural gas consumption under the Energy Resilience Leadership Group initiative. Following this, a high-level panel discussion ensued whereby experts discussed industry decarbonization with a focus on technologies, the role of partnerships and what is required by industries through topics including investment, measuring and reporting, and innovation.

    Panelists emphasised that although it is relative by industry and context, the four key solutions for decarbonizing industry are electrification, energy efficiency, hydrogen and carbon capture, usage and storage. The key message of the panel was the importance of cross-sectoral partnerships in accelerating efforts, especially in confronting challenges such as the scarcity or lack of availability of certain technologies and the need to establish green markets with demand to match supply. The panel also brought forward key considerations including the potential need to source energy internationally through global value chains to adequately satisfy the high demand required to meet decarbonization targets.

    We need to join forces and act now on climate change

    The Alliance for Industry Decarbonization welcomes more new members, as Abu Dhabi Sustainability Week returns pledging unity on climate action towards COP28

    The Alliance for Industry Decarbonization Outlines Core Focus Topics, and Welcomes New Partners at Maiden COP27 Meeting

    13 new partners joined the Alliance, with more set to join in the next weeks, to progress the joint vision, strategy and implementation plan.

    The G20 meeting

    IRENA and Industry Leaders Launch the Alliance for Industry Decarbonization

    The International Renewable Energy Agency (IRENA), co-founding partner Siemens Energy and 13 companies across all industry sectors have launched the global Alliance for Industry Decarbonization. The new Alliance aims to accelerate net-zero ambitions and the decarbonization of industrial value chains in pursuit of the Paris Agreement climate goals.

AFID Publications

Bioenergy with carbon capture, utilisation and storage (BECCUS) is crucial for achieving global climate goals, supporting a comprehensive pathway to net-zero emissions. This report explores the integration of BECCUS into energy systems, covering essential policies, regulations and certification standards needed to scale up BECCUS, ensuring sustainable biomass sourcing and reliable long-term CO2 storage. It also underscores the importance of robust monitoring, reporting and verification (MRV) standards for carbon credits, and provides actionable insights for policymakers and industry leaders.

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The report focuses on the role that carbon capture and storage and bioenergy with carbon capture and storage will need to play in meeting the world’s decarbonisation commitments. It covers the global status, costs, and prospects of carbon capture and storage, with and without bioenergy as well as a brief overview of policy and regulation. The report includes global case studies of carbon capture and storage.

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This report explores the crucial role of green hydrogen in the global energy transition. It emphasises the importance of green hydrogen in decarbonising transport, power and industry, advocating a global shift towards sustainable energy practices. Highlighting the need for international cooperation, the report calls for standardised definitions, safety standards and regulatory frameworks to accelerate the development and adoption of green hydrogen, and sets a goal to establish green hydrogen as an accessible and cost-effective technology option by 2030.

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This comprehensive report from the Alliance for Industry Decarbonization (AFID) details a range of solutions to decarbonise steel manufacturing, such as shifting to low-carbon fuels like hydrogen, electrifying processes with renewable energy, and utilising waste heat recovery systems to improve efficiency and reduce emissions. The report emphasises the importance of collaboration among governments, industry stakeholders, and research institutions to create supportive policies and incentives. It calls for significant investment in research, the implementation of pilot projects, and workforce training to advance decarbonisation technologies and ensure their successful implementation. 

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Resources

Bali Declaration

COP 27 Communique

Implementation Plan

COP29 Decarbonization Commitment

Joint Action Plans 2024