Decarbonizing the industrial sector is critical for achieving net-zero emissions by 2050. Since the industrial revolution, greenhouse gas (GHG) emissions have steadily increased and nearly tripled over the last three decades. Industry accounts for 23% of U.S. GHG emissions and 24% of global GHG emissions (excluding emissions from industrial electricity use).

Heavy industries, like chemical production, cement and steel production and oil and gas refining should no longer be dismissed as too ‘hard to abate.’ Even as demand is expected to rise for cement, steel and chemicals in coming years, technologies for decarbonizing and options for transitioning these manufacturing processes are rapidly emerging and becoming more cost competitive due to historic public investments in the U.S.

Graphic showing technology options for heavy industry.

Oil and gas demand, however, will be dropping over the next few decades as the world electrifies. Facilities related to fossil fuel production may need to retrofit in the near-term and retire in the long-term. In the drive to decarbonize, retrofitting decisions should consider whether the result will reduce all pollutants and have significantly less impact on the environment and neighboring communities.

The path toward industrial decarbonization by midcentury requires comprehensive company strategies and a robust portfolio of federal and state policies to support innovation, investment and deployment.

Graphic showing policy tools for industrial decarbonization.

WRI researches the opportunities and challenges of industrial innovation and offers practical steps that U.S. policymakers and industrial leaders can take to accelerate action. Our work has focused primarily on refining, petrochemicals, cement and steel. We also co-facilitate the Industrial Innovation Initiative to advance key policy recommendations to enable deep decarbonization of heavy industries.

 

Cover image credit: Skitterphoto / Pixabay