The decarbonization of heating in energy intensive industries is progressing at a very slow pace. Furthermore, about 70% of short-term industrial energy efficiency savings are in light industry, and small and medium-sized enterprises (SMEs). The rapidly growing industrial sector in the Asia and Pacific region is highly dependent on fossil fuels, and this is driving considerable increases in GHG emissions. Only a limited number of renewable energy solutions are being considered at scale for deployment in hard-to-abate industries, and these include geothermal, heat pumps, solar thermal and biogas. There is a unique opportunity to help developing countries set strong regulatory frameworks and leapfrog to clean and efficient energy solutions. What is needed to unlock greater investments in energy efficiency in the industrial sector? What are the key regulations and incentives needed to unlock greater investment? What is the role of local financial institutions, and how are they supporting energy efficiency in industrial SMEs? What are the latest developments, case studies and business models for renewable energy solutions in the industrial sector? How can governments engage with the private sector to finance renewable energy heating projects in the industrial sector? What approaches is industry considering to decarbonize heating?

This session will explore the cutting edge of energy efficiency and renewable energy initiatives for industrial decarbonization in developing Asia and the Pacific. The panel of experts will present effective solutions to address critical challenges related to technical, financing, policy and governance, and awareness raising. Solutions are presented across several industrial sectors, including iron and steel, cement and concrete, organic and inorganic chemicals, and e-fuels production. Specifically, a ground-breaking ADB project presents financing solutions to foster energy efficiency improvements in carbon-intensive small and medium enterprises. A USAID program showcases its help to the Vietnam Ministry of Industry and Technology (MOIT) identifying pathways to decarbonize industrial parks, relevant for many countries across the region. Innovative approaches to disseminating knowledge on decarbonization are showcased, including the digital iDEEKSHA portal and the successful program of the Confederation of Indian Industry (CII) to increase the uptake by SMEs of energy efficiency and renewable energy. Policy solutions are presented by the World Resources Institute (WRI) of an industry-led decarbonization framework for Indonesia that aims to guide holistic adoption of technology, financing, and governance of emissions reductions, to support achievement of net-zero targets. Lastly, the economics of decarbonization solutions are presented by the National Renewable Energy Laboratory (NREL).

The session is designed to offer open and interactive discussions between speakers and participants and to co-create new ideas essential for this critical task on developing Asia and the Pacific’s decarbonization journey.