Net-Zero Industry Tracker 2023 

Net-ZeroIndustry Tracker2023 Edition I N S I G H TR E P O R TN O V E M B E R2 0 2 3 Contents Foreword3 Executive summary4 Introduction6 1 Cross industry findings9 2 Aviation industry net-zero tracker22 3 Shipping industry net-zero tracker33 4 Trucking industry net-zero tracker44 6 Cement industry net-zero tracker65 7 Aluminium industry net-zero tracker75 8 Ammonia industry net-zero tracker86 Conclusion107 Appendices 108 108 A1: Abbreviations and acronyms A3: Data sources112 Contributors113 Endnotes116 Disclaimer This document is published by theWorld Economic Forum as a contributionto a project, insight area or interaction.The findings, interpretations andconclusions expressed herein are a resultof a collaborative process facilitated andendorsed by the World Economic Forumbut whose results do not necessarilyrepresent the views of the World EconomicForum, nor the entirety of its Members,Partners or other stakeholders. © 2023 World Economic Forum. All rightsreserved. No part of this publication maybe reproduced or transmitted in any formor by any means, including photocopyingand recording, or by any informationstorage and retrieval system. Foreword Roberto Bocca Head, Centre for Energyand Materials; Member ofthe Executive Committee,World Economic Forum Muqsit AshrafGlobal Strategy Lead,Accenture In a decade marked by economic expansion andsurging demand for goods and transport, we face aparadoxical challenge: How can we address climatechange while fostering economic growth and resilience?This challenge is particularly difficult for companiesoperating in the steel, cement, aluminium, ammonia,energy and transport sectors. These companiesare critical to satisfying future demand and enablingeconomic growth. Yet, they contribute over 40% ofthe world’s greenhouse gas (GHG) emissions. Theiremissions are difficult, but critical to abate. TheNet-Zero Industry Trackerfocuses onproduction, transport and energy sectors.Decarbonizing these industries’ processes andvalue chains will require more than technologicaladvancements. The effort must encompassbusiness operations, regulations and widercross-sectoral collaboration. While somecountries are issuing supportive policies andfinancial commitments, the reality is that thesesectors are lagging. We believe a course correction is still possible. Itwill require industrial leaders to champion innovativebusiness models and shared infrastructures, suchas hubs and clusters, that provide greater access todevelopment opportunities and promote equitablesector growth. A successful transition will also requiresignificant financial commitments; we estimateroughly $13.5 trillion will be needed to build the cleanpower and electrification, hydrogen and carboncapture utilization and storage (CCUS) solutionsand infrastructure to meet demand. Bi-directionalpartnerships and cross-industry collaboration willalso be important in stimulating demand for (andadoption of) low-emission products and cleanpower-based technologies, developing industrialapplications and pursuing new market opportunities.Sector-specific policies and regulations are essential.So are cross-regional policies that can help bridgedisparities among regions. It is encouraging that many businesses havemade significant progress towards their 2050net-zero goals. Yet most of that momentum isseen in companies with easily abatable emissions,substantial financial resources to invest indecarbonization, public accountability or thoseoperating in advanced economies with supportivepolicies. A gap remains between those abatementleaders and companies experiencing greateremission intensity, operating in emerging economiesor lacking the financial means to embark on asubstantial decarbonization journey. The challengesfacing these companies and sectors are pernicious –and exacerbated by the fact that their technologies,infrastructures and policy frameworks often fall short. Through this effort, the World Economic Forum,with support from Accenture, intends to acceleratedecarbonization of emission-intensive production,energy and transport industries. Our aim is toensure that no company is left behind in thetransition to a more sustainable and carbon-neutralfuture, for which timely and consistent monitoring ofindustrial decarbonization is essential. This practiceis crucial to helping companies and industriesmaintain a steady pace of progress. Still, it firstrequires a consensus on definitions and thresholdsof low-emission products and services from thesesectors. Without that, it will be difficult to achievethe transparency needed to build confidence andreinforce the momentum to net zero. Industrial decarbonization remains one of themost daunting challenges of the energy transition.Every country and industry must determine how toincentivize domestic benefits and create quality jobswhile ensuring the principles of free trade and openmarkets. The key findings from the 2023 GlobalStocktake of the Paris Agreement confirm