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Cross-cutting analysis

Framework for Industry's net-zero Transition Kick-off Meeting

13 April 2022
09h30 - 12h30
OECD Paris
Hybrid Meeting

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Background

Countries that have set net-zero targets cover around 90% of the total current global carbon dioxide (CO2) emissions. This is a promising step to prevent a global climate disaster, but there are still uncertainties about the regulatory measures, the enabling market conditions and the financing sources and instruments that will make this net-zero transition possible for countries and companies. A five-fold increase of investments in the low-carbon measures is required in 2026-2030 compared to 2016-2020 to be consistent with a net-zero pathway.

There are salient challenges for the manufacturing industry, which is the sector with the largest energy use (including the use of fossil fuels as feedstock), emitting 40% of the global CO2 emissions. Moreover, the industrial output and use of basic materials such as steel, cement, and plastics is increasing globally and even more prominently in emerging and developing economies.

The array of measures for low-carbon transition aligned with a net-zero path are well identified. However, no single technology can curb all emissions and the suitability and cost efficiency of the technologies depends on multiple factors. Moreover, countries have different priorities for their industrial development, and face different challenges and issues. Therefore, a flexible approach is required to overcome the barriers of deploying low-carbon technologies.

The understanding of the urgency to reduce the carbon emissions of the industry sector has gained momentum over the last decade. Stakeholders from the public and private sectors have launched a range of initiatives to accelerate the net-zero transition. Environmental, Social and Governance (ESG) considerations weigh increasingly in investment decisions. While this is encouraging, additional efforts are needed to identify enabling market conditions and financing solutions, in order to mobilise investments aligned with the net zero pathways.

The CEFIM programme aims to strengthen domestic enabling conditions to attract finance and investments in renewables, energy efficiency and decarbonisation of industry in emerging economies. The Framework for Industry’s net-zero Transition is a step-by-step approach to assist emerging and developing economies in transforming their industries with low-carbon technologies through the development of market-based and financing solutions, considering their national circumstances. The Framework will subsequently be implemented in Indonesia, in co-ordination with the Ministry of National Development Planning (BAPPENAS), and in Thailand. The project is part of the OECD’s “Sustainable Infrastructure Programme in Asia” (SIPA).

The Kick-off meeting provided an opportunity to:

  • Discuss how the Framework can support countries in view of the global industry sector developments (Session 1)
  • Outline possible finance and market solutions from different countries for industry’s net-zero transition (Session 2)
  • Identify opportunities for collaboration during the implementation of the Framework (Session 3)

 

Speakers

Welcome remarks

  • Cecilia Tam, Team Leader, Clean Energy Finance and Investment Mobilisation, OECD

Presentation of the OECD framework for Industry's net-zero transition

Session 1: The suitability of the Framework in view of the global industry sector developments

Moderator: Deger Saygin, CEFIM Programme Industry Programme Lead, OECD

  • Arijit Sengupta, Bureau of Energy Efficiency, Government of India
  • Mahendra Shunmoogam, Department of Trade, Industry, and Competition, Republic of South Africa: “Steel and Metal Fabrication Master Plan
  • Rizka Tri Wardani, Centre for Green Industry, Ministry of Industry, Republic of Indonesia

Session 2: Possible finance and market solutions for industry’s low-carbon transition

Moderator: Joseph Cordonnier, CEFIM Programme Policy Analyst, OECD 

Wrap up and next steps

  • Deger Saygin, CEFIM Programme Industry Lead, OECD

Contact

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