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M-2 - Industry

The industry sector is a major contributor to global greenhouse gas (GHG) emissions, accounting for 31% of global CO₂ emissions. This sector encompasses a wide range of activities, including the production of materials such as steel, cement, and chemicals, as well as manufacturing, mining, and construction. It addresses emissions from both direct industrial processes, which often involve high-temperature heat and chemical reactions, and indirect emissions from the energy consumed in these processes.

As industrial activity continues to expand, particularly in emerging economies, the challenge of mitigating emissions in this sector becomes increasingly critical. Effective mitigation strategies within the industry sector include enhancing energy efficiency, transitioning to low-carbon energy sources, adopting carbon capture, utilisation, and storage (CCUS) technologies, and advancing material efficiency and circular economy practices.

Technological innovations, supported by strong policy frameworks and market incentives, are central to reducing emissions in the industrial sector. Electrification of industrial processes, especially when paired with renewable energy, represents a crucial pathway. Additionally, developing and deploying low-carbon materials, alongside optimised production processes, can significantly lower emissions. However, implementing these solutions requires careful consideration of regional industrial contexts, economic viability, and the development of necessary infrastructure to achieve deep and sustained reductions in industrial emissions.

Mitigation Potential

TBD.

Mitigation Options

The AR5 report (IPCC AR5 WG3 2014)1 forms the primary source for the breakdown of the industry sector. While AR6 (IPCC AR6 WG3 2022)2 provides depth on newer technological options such as digitalisation and high-temperature heat pumps, it is AR5 that offers a comprehensive analysis of the full range of the categories of mitigation options.

Section 10.1 of (IPCC AR5 WG3 2014)1 offers a simplified decomposition of emissions in this sector as:

\[G = \frac{G}{E} \cdot \frac{E}{M} \cdot \frac{M}{P} \cdot \frac{P}{S} \cdot S \]

Where:

  • \(E\) = total emissions
  • \(G/E\) = emission intensity
  • \(E/M\) = energy intensity
  • \(M/P\) = material intensity
  • \(P/S\) = product-service intensity
  • \(S\) = global demand for service

Thus mitigation options exist targeting each intensity factor above, as outlined in Section 10.4 of (IPCC AR5 WG3 2014)1. This gives the following breakdown:

M-2A - Energy efficiency

M-2B - Emissions Efficiency and Fuel Switching

M-2C - Material Efficiency (Production and Product Design)

M-2D - Using Products More Intensively

M-2E - Reducing Overall Demand for Product Services

Emissions

We estimate that the industry sector was accountable for 31.3% of global greenhouse gas emissions for 2020 (14,860 MtCO₂-eq, see GHG Emissions).

See E-2 - Industrial Processes and Product Use for a summary of IPCC guidelines for emission reporting.

  1. IPCC AR5 WG3. 2014. Climate Change 2014: Mitigation of Climate Change: Working Group III Contribution to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. Edited by Intergovernmental Panel on Climate Change and Ottmar Edenhofer. Cambridge University Press. ↩↩↩

  2. IPCC AR6 WG3. 2022. Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Edited by Priyadarshi R. Shukla, Jim Skea, Raphael Slade, Alaa Al Khourdajie, Renée van Diemen, David McCollum, Minal Pathak, et al. https://doi.org/10.1017/9781009157926. ↩

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