Global push to decarbonize heavy industries gains momentum at COP 29

International efforts to decarbonize heavy industries in the Global South gained momentum at this year’s climate talks in Azerbaijan. Germany, the United Kingdom (UK), Canada, and the Climate Investment Funds (CIF) committed new support for heavy industry decarbonization in emerging markets and developing economies (EMDEs). International collaboration also advanced with a new support package to help countries include industries in their climate plans. Meanwhile, a platform to provide faster access to finance and technical support for EMDEs seeking to decarbonize their heavy industries was also announced.

New finance announced

With heavy industry in EMDEs expected to grow significantly in the coming decades, Germany, the UK, Canada, and the CIF announced a joint commitment to scale industry decarbonization support to US$ 1.3 billion in the Global South. This commitment is designed to spark further support from governments, philanthropies, and private sector investors, while also sending a strong message to the international community ahead of COP30 in Brazil. Several organizations, including the United Nations Industrial Development Organization (UNIDO), the Mission Possible Partnership, and the Alliance for Industry Decarbonization, have already joined the initiative. Meanwhile, the Climate Club and the Breakthrough Agenda will play key roles in facilitating its progress.

Hugo Salamanca, an industry decarbonization expert at UNIDO, said the commitment was an important step forward. “To meet net-zero goals, annual global investments in clean industrial energy must double by 2030 and triple by 2050, reaching US$ 500 billion per year,” he said. “The new commitment is expected to spark momentum for larger financial commitments, which is crucial for keeping the 1.5 degree target within reach,” he said.

Support package for integrating industry into climate plans launched

Industry is responsible for over 21 per cent of global emissions, and nearly 31 per cent when including indirect emissions from electricity use. Without fully integrating the industrial sector into climate plans, key targets will undoubtedly be missed. Heavy industry–iron, steel, cement, and chemical–contribute the lion’s share of this sector’s emissions (71 per cent of total industry emissions), yet these are often missing from national climate plans.

“We rely on the steel and cement industries for our homes, schools, roads and other critical infrastructure–simply put, they provide the building blocks of our societies,” Mr. Salamanca said. “Economic development, particularly in EMDEs, is already increasing demand for these products. This demand is expected to surge over the coming decades and it’s critical that Nationally Determined Contributions (NDCs) fully take that into account,” he said.

As nations update their NDCs now, UNIDO’s Net Zero Partnership for Industrial Decarbonization (NZP) called for countries to raise their ambitions with industry at COP this year. To support this, in collaboration with the United Nations Development Programme and the NDC Partnership, the NZP launched a practical support package to assist countries to integrate industries into their updated climate plans. This package bridges a critical support gap, providing the first step-by-step guide to including industry in NDCs.

“It has been specifically designed to empower EMDEs to fully own their ambitious decarbonization targets and actions,” Mr. Salamanca said. “We are conscious that governments need to address the specific needs of their populations and their national priorities,” he said. “From the discussions we had at COP, some countries expressed the need to decarbonize their industry, others to develop a green industry, so there was a lot of interest in the support package as it offers that tailored support they are looking for.”

Industry also responded positively to the new support package. “Different industry representatives said that when there are clear industry-specific targets and plans in the NDCs, they feel confident to invest and can be more ambitious themselves,” Mr. Salamanca said.

New matchmaking platform

A major milestone for heavy industry decarbonization at COP 29 was the launch of the Climate Club’s Global Matchmaking Platform. First announced at COP 28, the platform is backed by the German Federal Ministry for Economic Cooperation and Climate Action and implemented by UNIDO. Leveraging international cooperation, it aims to connect governments in EMDEs with financiers, technology, and expertise to develop customized decarbonization solutions for heavy industry sectors.

UNIDO’s NZP, which is the organization’s go-to group for decarbonizing heavy-emitting industries in the Global South, will take up requests for technical assistance that come through the new Platform. “This kind of collaboration platform, where requests can be quickly matched with offers, is urgently needed,” Mr Salamanca said. “It will definitely help us move more quickly on decarbonization solutions,” he said.

Looking ahead

The new financial commitments and international collaboration are positive steps forward, said Mr. Salamanca. “The decisions that are made and the actions that we take in the next five years will be decisive for the climate and we have to act on solutions now,” he said. “Over the next year, ahead of COP 30, where we will mark the 10-year anniversary of the Paris Agreement, I hope that breakthrough projects to reduce industry emissions can emerge,” he said. “I would also like to see countries committing to the procurement of green steel and cement, such as the one led by the Industrial Decarbonisation Initiative, because this could be a real game-changer, accelerating technology development and investment.”