The industrial sector, responsible for 25-30 per cent of global CO2 emissions, has moved from the slow lane of decarbonation to a full-on green transition.

In a report from Sweco’s Urban Insight, The Race towards a Green and Resilient Industrial Sector, shows that Europe is taking the global lead in the green transition of the industry sector, as 95 per cent of the full-scale projects in green cement worldwide are done in Europe, as well as 61 per cent of all fossil-free steel projects.

The drivers for this come from higher prices for CO2 emissions, new investment, new regulations and stronger demand for green products from customers, with the steel industry taking the lead, and the cement industry close behind.

As demand for industrial products is expected to increase significantly over the next three decades – steel by 30 per cent, cement and ammonia by 40 per cent, and aluminium by 80 per cent, companies in these hard-to-abate-industries will need to deliver even greater efforts, greater recycling use and investment in new technologies.

Another area will be the need for industrial symbiosis, created by using waste from one operation as a resource in another operation and is a subset of the circular economy. A more circular economy could cut CO2 emissions from heavy industry by 56 per cent by 2050 if new business models, planning and collaboration are used.

“To address climate change effectively, a holistic perspective is necessary – one that balances global challenges with local conditions. Existing industries must adapt to enable the creation of new businesses. This represents an enormous challenge, and time is of the essence. All hard-to abate-sectors need to be involved, notes Martina Söderström, division manager environment and planning at Sweco Sweden.

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