COP 28 Primer: ‘Hard-to-abate industries expect decarbonisation budgets to rise over next 3 years’

COP 28 Primer: ‘Hard-to-abate industries expect decarbonisation budgets to rise over next 3 years’

Seven out of 10 executives from “hard-to-abate” industries expect an increase in decarbonisation budgets over the next two to three years, a joint report by UAE-based Masdar and FT Longitude, said.

Less than a third of industry executives say their budget will be adequate to meet their needs, while over half have not yet set net-zero targets, according to the report, titled ‘Hard to Abate, Ready to Start.’

The report comes ahead of the UAE’s preparations to host COP28 later this year.

Renewable energy (54 percent), energy efficiency (47 percent) and circular economy applications (37 percent) were the primary focus areas of decarbonisation activity.

“Many companies are only just getting started with feasibility studies for large-scale investments in technologies such as blue and green hydrogen and carbon capture, utilisation and storage (CCUS), which are more of a longer-term priority,” the report noted.

Reducing emissions in the hard-to-abate industries – cement, steel, aluminum, petrochemicals, shipping, aviation, heavy industry, and manufacturing – is vital to combat climate change, with industry and transport accounting for almost half of the global emissions.

According to the report, half of the senior industry leaders are more confident that net zero in their business is more achievable today than a few years ago.

Sultan