The urgency of addressing climate change is becoming undeniable as global temperatures continue to rise. Industries must decarbonise quickly and effectively if the world is to even try to meet the Paris Agreement’s goal of limiting global warming to 1.5°C, which has been breached already.

Today, energy, manufacturing, transportation, and agriculture sectors are significant contributors to global carbon emissions. These sectors suffer from inefficient plant processes and outdated technologies and use fossil fuel-based energy for production.

These sectors must strongly push for decarbonisation, or carbon emission reduction practices, to reduce their carbon footprint. This can only happen when decarbonisation progresses from a corporate social responsibility measure to becoming an impetus for long-term economic survival and ecological balance. The upcoming COP 29 conference presents a golden opportunity to accelerate industry action towards decarbonisation by making new commitments with the consensus of the stakeholders.

The conference is expected to play a significant role in driving industrial decarbonisation through several initiatives:
Climate finance: The establishment of the Climate Finance Action Fund (CFAF) will mobilise private sector investment in green projects. This fund will provide financial support for renewable energy producers and green industrial projects, helping to de-risk investments in decarbonisation technologies.

Clean hydrogen initiatives: Clean hydrogen development and deployment will be accelerated as a low-carbon energy source. The conference will address regulatory, technological, and financial barriers that hinder the growth of this market.

Carbon markets: Expanding carbon markets globally is a key agenda at COP 29. Carbon trading schemes have already contributed significantly to emission reductions in Europe and other regions. The summit aims to facilitate more efficient carbon abatement across industries by scaling up these markets.

Policy harmonisation: Another agenda of the meeting is to harmonise international policies and standards for decarbonisation technologies. This includes setting common frameworks for clean hydrogen certification and facilitating cross-border cooperation on energy projects. These policies will allow the international free flow of technology and energy commodities.

In addition to the initiatives highlighted above, policies and pledge in some additional areas can result in significant cutbacks on global emissions. Therefore, new frameworks and policies should be discussed in them:

Energy efficiency: Improving energy efficiency is a fundamental step in reducing emissions. Industries can significantly cut energy consumption by optimising processes and upgrading equipment. For example, retrofitting industrial plants with the latest technology can reduce emissions by 10% to 20%. This step will lower emissions and reduce operational costs, creating a win-win situation.

Electrification: Transitioning to electric power, especially from renewable sources, can drastically reduce carbon emissions. Hybrid setups that combine renewable energy with conventional sources are becoming more viable as technology advances. New commitments can be made to promote hybrid and pure electric mobility transport running on clean energy. This can be enticing for transportation and manufacturing, where electric alternatives are increasingly available.

Low-carbon fuels: Using low-carbon fuels such as biofuels and hydrogen can help industries transition away from fossil fuels. However, the scalability and cost of these alternatives remain significant barriers. By funding R&D efforts to overcome these barriers and formulating policies around these low-carbon solutions, the adoption rate of this tech can be improved. International assurance will encourage technologically driven new players to enter this market.

Carbon capture, utilization, and storage (CCUS): CCUS technologies capture carbon emissions from industrial processes and store/reuse them. This approach is handy in curbing emissions in industries like cement and steel production, where CO2 emissions are difficult to curtail. The International Energy Agency estimates that 1.7 billion tonnes of CO2 capture capacity is needed globally by 2030 to meet net-zero targets.

COP summits provide a platform for setting ambitious targets and encouraging collaboration between governments, industries, and other stakeholders. This year, COP 29 can accelerate the transition towards a low-carbon industrial future by adopting new finance targets, advancing clean technologies like hydrogen, expanding carbon markets, and harmonising policies. Additional discussion on commitments in energy efficiency, electrification, low-carbon fuel and CCUS can be highly effective in meeting the climate targets.