Decarbonising energy-intensive heavy industries have historically been a ‘blind spot’ in the clean energy debate. However, in 2021, growing attention is being paid to this important sector, such as through the Clean Energy Ministerial, Mission Innovation and the Leadership Group for Industry Transitions. These initiatives are bringing together countries and industry stakeholders to address the key decarbonisation challenges in a range of industrial sub-sectors, such as cement, iron and steel, and chemicals. In addition to technical barriers, such as achieving the required high temperatures for many industrial processes, well-known commercial barriers include the capital costs for low carbon technologies (such as fuel-switching to clean hydrogen or renewable electricity, carbon capture, usage and storage (CCUS), digitalisation and deep energy efficiency, industrial symbiosis and circular economy approaches), and the need for effective policy enabling environments and cross-border frameworks for stimulating regional and global demand for low carbon industrial products.
Recent analysis indicates that direct emissions from industry could be 28% lower in 2050 if industrial decarbonisation is supported in developing countries. This workshop focuses specifically on middle-income and low-income countries in the Asia-Pacific region, where the industry was responsible for almost 4 MtCO2 in 2018 and accounts for a large and increasing share of global energy demand (43% in 2017). The discussions will centre on the role that innovation can play to address commercial barriers, such as in developing effective markets for low carbon industrial products and in creating innovative financing products that facilitate the uptake of technologies to decarbonise industrial processes.
- To focus on a sector that has received limited targeted attention at previous ACEFs and represents an increasing share of emissions in the Asia-Pacific region. It will help stakeholders to draw attention to industry as an important sector-of-focus for climate mitigation financing and where the opportunities are.
- To discuss how to address key market and financial barriers (rather than technical barriers) for industrial decarbonisation through innovative financial products and market-building approaches. It will facilitate the sharing of lessons learned, successes and challenges encountered in Asia-Pacific for the benefit of relevant government and industry participants in the region.
|2:00-2:10 p.m.||Opening remarks and workshop overview: Dr. Peter Warren, Head of Climate Finance for Innovation, Department for Business, Energy & Industrial Strategy (BEIS), UK Government|
|2:10-2:20 p.m.||Scene-setter – Net Zero by 2050: the Role of Industry in a Roadmap for the Global Energy Sector: Araceli Fernandez-Pales, Head of Technology and Innovation Unit, International Energy Agency|
Innovative financing products panel discussion and Q&A:
Chaired by: Ivan Jaques, Senior Energy Specialist, ESMAP, World Bank
Innovation market-building panel discussion and Q&A:
Chaired by: Petra Schwager, Chief – Energy Technologies and Industrial Applications, UN Industrial Development Organization (UNIDO)
Workshop summary and closing remarks:Dr. Peter Warren, Head of Climate Finance for Innovation, Department for Business, Energy & Industrial Strategy (BEIS), UK Government|
As COP26 Presidency, the UK is committed to working with all countries and joining forces with civil society, companies and people on the frontline of climate action to inspire ambition ahead of COP26. The UK Prime Minister has committed to double the UK International Climate Finance to at least £11.6 billion between 2021/22 and 2025/26. The UK is playing an important role in accelerating clean energy innovation through its leadership of Mission Innovation and by acting as Chair of its Steering Committee, it pledged to double its spending on clean energy innovation to £400m by 2020/2021
United Nations: UN Industrial Development Organization (UNIDO)
The United Nations Industrial Development Organization (UNIDO) is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. The mandate of UNIDO is to promote and accelerate inclusive and sustainable industrial development in developing countries and economies in transition, including transition to a sustainable energy future under the overarching mandate of ISID, through the application of renewable energy for productive uses, adoption of the efficient use of energy by industry and the introduction of low-carbon technologies and processes.
World Bank: Energy Sector Management Assistance Program (ESMAP)
ESMAP is a partnership between the World Bank and 19 partners to help low and middle-income countries reduce poverty and boost growth through sustainable energy solutions. ESMAP’s analytical and advisory services are fully integrated within the World Bank’s country financing and policy dialogue in the energy sector. Through the World Bank Group (WBG), ESMAP works to accelerate the energy transition required to achieve Sustainable Development Goal 7 (SDG7) to ensure access to affordable, reliable, sustainable and modern energy for all. It helps to shape WBG strategies and programs to achieve the WBG Climate Change Action Plan targets.
Point of Contact
Dr. Peter Warren, Department for Business, Energy & Industrial Strategy,