Global economic activities, as well as our day-to-day lives, rely on various products from industrial sectors such as iron and steel, chemicals, concrete and cement, pulp and paper, and food, all of which are highly emitting in their conventional production processes. Combined, these sectors were the source of approximately 33% of total global CO2eq direct emissions in 2021. Furthermore, demand and production capacity in the industrial sectors have shown rapid and continued growth, mainly in developing and emerging economies, in line with their economic growth. This means a massive reduction of atmospheric GHG emissions is required in the industrial sectors in developing and emerging economies to achieve the global net zero target following the Paris Agreement. Notwithstanding the increased attention to this area and the establishment of some regulatory initiatives and standards for industrial production, such as the Carbon Border Adjustment Mechanism, the overall progress of decarbonization in industrial emissions remains slow.

This workshop looks into the options and challenges to mainstream and accelerate industrial decarbonization in developing and emerging economies in the Asia-Pacific region. Although there is a persistent perception that decarbonization technologies are prohibitively expensive, it is necessary to take a closer look at the available technologies and value chains in individual industries, as there may be certain “low-hanging fruits.” The role of innovative financing to demonstrate the viability of such new technologies cannot be overemphasized. The workshop will invite private sector players who are spearheading decarbonization initiatives in the region to share knowledge, experience, and challenges in applying them. Finance experts will also join to share their experience in developed markets and discuss how these can be transferred to emerging markets. The workshop aims to address the issues related to capital costs for decarbonization technologies, explore innovative financing, business models, and policy support to accelerate the net-zero transition, and identify areas and opportunities where development finance institutions can effectively contribute to decarbonization initiatives.