G7 must lead on decarbonising heavy industry: IEA

G7 must lead on decarbonising heavy industry: IEA

London, 19 May (Argus) — G7 members must "explicitly target emissions from heavy industry sectors," and act as "first movers" to work towards net zero greenhouse gas emissions for the sector, Paris-based energy watchdog the IEA said.

The bloc should reach a net zero emissions target through policy and a combination of support mechanisms, including subsidies and mandates for near zero-emission materials, the IEA recommended.

Heavy industry — such as steel, cement and chemical production — accounts for around 70pc of global industrial emissions, at 6bn t/yr, the IEA said. But a global energy transition will increase demand for these products, given their use in renewable energy infrastructure such as wind farms and electric vehicles.

For G7 members — Canada, France, Germany, Italy, Japan, the UK, the US and the EU — heavy industry is responsible for more than 15pc of coal use and around 10pc of oil and gas consumption. China is the only single country with larger heavy industry sectors than the G7 bloc combined, the IEA said, making it key that G7 members mobilise their economic and innovation power to lead a global transition to net zero heavy industry.

The IEA set out a tight timeframe for G7 members to act.