The Organisation for Economic Co-operation and Development (OECD) launched its new “Framework for industry’s net-zero transition: Developing financing solutions in emerging and developing economies”, developed by the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) Programme. The project is part of the OECD’s “Sustainable Infrastructure Programme in Asia” (SIPA).
Countries that have set net-zero targets cover around 90% of the total current global CO2 emissions. The transition of the manufacturing industry with low-carbon technologies will be critical in achieving these targets since the sector is the single largest energy user and it is responsible for the largest source of CO2 emissions globally. A growing number of new public and private sector-led initiatives has been supporting ways to facilitate the transition of the industry. An important step was taken in June 2022 by the G7 leaders who have endorsed an international Climate Club to advance on industry decarbonisation through partnerships and co-operation.
The Framework complements and informs these initiatives and uses the OECD’s convening power to bring together and create dialogue between government, the private sector and financial sector actors. It provides specific assistance to emerging and developing economies in developing actionable market and financing solutions for accelerating low-carbon investments. The OECD’s Framework document explains how and by which actors it can be implemented through five consecutive steps.
The presentation of the Framework was followed by a high-level panel discussion on the role of financing for industry’s net-zero transition. The panel was attended by speakers representing the government, the industry sector and financial institution actors. Panellists discusse the role of finance in accelerating industry’s transition to net zero and how different financing solutions, such as blended finance and technology transfer, should consider the industry sector’s features and priorities in view of national circumstances. The discussion also elaborated on how financing can help to create a favourable environment for investing in potentially costly low-carbon technologies needed for industry’s transition, while safeguarding the economic viability of industrial companies.
Welcome and opening remarks
Presentation of the OECD framework for Industry's net-zero transition
High-level panel discussion: The role of financing for industry's net-zero transition
Moderator: Kumi Kitamori, Deputy Director, OECD Environment Directorate