Germany and UNIDO drive decarbonization with new initiatives as part of the Climate Club

DUBAI – The Government of the Federal Republic of Germany, represented by the Federal Ministry for Economic Affairs and Climate Action (BMWK), and the United Nations Industrial Development Organization (UNIDO) today announced two global initiatives that will enable more developing countries to transform their heavy industries to climate neutrality by 2050. The Partnership for Net Zero Industry and the Global Matchmaking Platform were signed at the United Nations Climate Change Conference (COP28). Germany has committed to provide EUR 23 million in seed funding for the two initiatives via its International Climate Initiative (IKI).

Both initiatives are part of the new Climate Club, officially launched at COP28 by German Chancellor Olaf Scholz. One essential focus of the Climate Club is the decarbonization of heavy-emitting industries like steel, cement and concrete as these sectors will be critical to achieve net-zero by 2050. Globally, these sectors need to reduce their emissions by 90% by 2050 to meet climate goals.

The Global Matchmaking Platform will be the Climate Club’s central platform for cooperation with developing countries. It will support developing countries in moving forward with industrial decarbonization agenda by facilitating the alignment, coordination and matchmaking of existing international technical and financial assistance offers and private finance instruments to the needs and priorities of emerging markets and developing economies. UNIDO will act as the platform’s secretariat.

The Partnership for Net Zero Industry will support developing countries in their efforts to decarbonize heavy-emitting sectors, like steel and cement, with technical assistance. It will initially provide support to five countries. Efforts are underway to bring more donors and philanthropies on board to extend this support to more countries.

Gerd Müller, UNIDO Director General, said, “Industrialized countries have a responsibility to assist with the decarbonisation of heavy industries around the world. The Global South must have access to low-carbon technologies. They are least responsible for climate change, but they suffer most from the effects. I congratulate Germany for leading the way. With our new Partnership for Net Zero Industry and Matchmaking Platform, we will help developing countries to access both funding, as well as technical support, to enable their climate-friendly industrial development. Together we bring knowledge and new technologies for sustainable industry and decarbonization from industrialized to developing countries. I call on public and private donors to join us. “

Robert Habeck, Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, said, “The transformation to net zero societies will only be possible and economically viable if we are able to develop competitive solutions for net-zero industrial processes. German companies have understood that economic success will only be sustainable with ambitious strategies to decarbonize production processes. To enhance global industrial decarbonization, Germany has driven forward the establishment of the Climate Club and is ready to be a strong partner, especially for developing and emerging countries, in the transformation of global industries towards climate neutrality. Together with UNIDO, Germany has today launched the Global Matchmaking Platform of the Climate Club and the Partnership for Net Zero Industry. We are delighted to have UNIDO on board as an established and well-connected partner.”

Notes to editors:

  • The Partnership for Net Zero Industry will initially assist five countries,selected from Climate Club members, to decarbonize their heavy industries, including steel, cement and concrete.The Partnership will work to:
    • Support the development of national transformation pathways in developing countries and emerging economies to a climate neutral industry by 2050.
    • Facilitate technology collaboration and prepare a pipeline of investment-ready projects for the deployment of decarbonization solution packages within steel, cement and concrete manufacturers in partner countries.
    • Foster dialogue, international collaboration and global industry-wide knowledge sharing on industry decarbonization solutions, experiences and lessons learned.
  • The technical assistance facility will be complemented by the Global Matchmaking Platform.The platform will support developing countries in moving forward with the industry decarbonization agenda by facilitating the alignment, coordination and matchmaking of existing international technical and financial assistance offers and private finance instruments to the needs and priorities of emerging markets and developing economies. The Platform will be open to all emerging market economies and other developing countries that are eligible for official development assistance (ODA).
  • The 33-member Climate Club will commence its active work with its full launch at COP28. As an inclusive and high-level intergovernmental forum, it will support the rapid and ambitious implementation of the Paris Agreement. The aim is to develop a framework to make decarbonized industrial production, starting with steel and cement, the standard business model. Cooperation and partnerships to support this aim will be actively promoted.
  • To spur sustainable industrial decarbonization, UNIDO co-launched the Industrial Deep Decarbonization Initiative (IDDI) – an international coalition of public and private organizations that are working to decarbonize heavy industries, starting with the steel, cement and concrete sectors. Germany is one of the core founding members of the IDDI and continues to actively contribute to its work.
  • Steel, cement and concrete accounts for 50% of industrial emissions and 15% of global emissions. To decarbonize these industries there is a need to multiply the number of net-zero cement and steel plants being built and significantly increase investments to transform these sectors. At the same time, these sectors need to reduce their emissions by 90% by 2050 in order to stay in line with the 1.5 degree scenario of the Paris Agreement.

Originally published on 5 December 2023 by UNIDO.