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Tuesday, April 16, 2024

“Difficult to reduce emissions” industry calls for decarbonization financing support


Executives from “difficult-to-abate” industries have called for increased financing to support decarbonization efforts after a landmark report outlining how less than a third think they have enough budget to do so Do, more than half have not set a net-zero goal.

Reducing emissions from hard-to-abate industries such as cement, steel, aluminum, petrochemicals, shipping, aviation, heavy industry and manufacturing is critical to efforts to combat climate change, with industry and transport accounting for almost half of global emissions.

The findings of the ‘Hard to Abate, Ready to Start’ survey, published by Masdar, organizers of Abu Dhabi Sustainability Week (ADSW), in partnership with FT Longitude, further the discussion on decarbonisation in the UAE by identifying the biggest barriers and what is needed Take greater action ahead of the 2023 United Nations Climate Change Conference (COP28).

Although challenging, the report finds that half of senior industry leaders are more confident in achieving net zero in their businesses today than they were a few years ago.

Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman-designate of COP28 and Chairman of Masdar, said: “COP28 will see the conclusions of the global stocktaking, reviewing progress on the Paris Agreement. We know the results will show where we are There is a huge gap between where we need to be and where we need to be. The UAE is committed to addressing this and regaining momentum to achieve the 1.5 target. In this regard, addressing carbon emissions in hard-to-reduce sectors is a priority. There is no exception to these important A net-zero emissions pathway for industry to decarbonize.”

Despite optimism across the industry and the emergence of innovative new technologies to capture and store carbon, reliable financing remains a major barrier to accelerated progress for many senior executives.

Despite the strides the industry has made over the past decade, 60% of organizations surveyed in Europe, Asia Pacific, the Middle East and North America still have not set decarbonization targets, with leaders of these organizations citing a lack of reliable funding as a The main obstacle to the achievement of the goal.

Eighty-three percent and 62 percent of senior executives from the Middle East and Asia Pacific, respectively, highlighted that they are taking steps to reduce emissions but have not yet set a target completion date.

Furthermore, only 30% of senior executives say their budgets are able to meet decarbonization needs, and more than 50% are concerned about the impact of global economic headwinds on decarbonization investments.

Ahead of COP28, the UAE presidency has made it clear that access to financing and capital will be a priority, noting that both government and private sector partners need to commit the resources needed for transformative action. This includes investing in the breakthrough technologies and innovations needed to drive this ambition, such as carbon capture and storage, and other forms of decarbonisation.

In addition to financing barriers, the report also highlights differences in the technologies available to accelerate decarbonization. Despite progress in recent years, the study outlines gaps in “frontier” technologies available at commercial scale, slowing the pace of accelerated decarbonization efforts in energy-intensive industries.

Mohamed Jameel Al Ramahi, CEO of Masdar, said: “Building on the important momentum gained during ADSW 2023, this report is an important tool to drive the decarbonization of hard-to-abate industries. Global collaboration between partners continues to play a leading role. We intend to seize the opportunity for utility-scale renewable energy and focus our investments on cutting-edge technologies such as sustainable aviation fuel and green hydrogen to help drive progress ahead of COP28. and beyond to accelerate global progress.”

In addition to calling for greater industry collaboration, the report highlights the importance of increased public sector support and calls on governments around the world to provide innovative incentives in funding, legislation and taxation to support national net-zero emissions targets.

As highlighted in the report, only 24% of senior executives expect to receive funding from government funds or incentives, while 41% believe that without more incentives and funding, they will not be able to achieve their goals in the domestic market. Net zero emissions target.

The report’s release comes ahead of the UAE’s preparations to host COP28 later this year. This global event will be an important milestone in driving dialogue and inclusive solutions across all sectors, including those that are difficult to eliminate. COP28 brings together key players in the sector with the aim of accelerating climate action and delivering concrete outcomes and solutions to climate change.

As COP chair-designate, Al Jaber emphasized the need to address gaps by bringing together public and private partners in a “COP for Action and a COP for All”. The UAE is firmly committed to an inclusive approach to climate action that includes industry leaders, civil society, academia, women, youth and indigenous peoples. -TradeArabia News Service


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