SINGAPORE, Sept 20 (Askume) – High-emissions industries are struggling to fund more than 450 large-scale low-carbon projects, according to data from the United Nations-backed Industrial Transformation Accelerator (ITA) project.
The ITA said on Thursday that removing “critical investment barriers” caused by low demand could unlock $700 billion in financing in 2030 and help decarbonise six industries, including steel, chemicals, aluminium, aviation, shipping and cement, which account for nearly one-third of global GDP.
Launched during the COP28 climate talks in Dubai last year, the ITA works with industry, investors and governments to promote the green transformation of “hard-to-kill” industries.
The 473 net-zero projects proposed across six sectors cover about 80% of the emissions cuts needed to meet Paris climate goals by 2030, but companies have struggled to meet the targets.
“The number of announced projects is exactly what we need,” said Faustin Delasalle, executive director of the ITA secretariat. “Our biggest concern is the difficulty of translating announcements into actual construction.”
He said that while companies were sincere in announcing projects and had the technology needed to decarbonise, they were struggling with the business case. One high-profile example is Shell’s (SHEL.L) decision in July to “pause” the construction of a sustainable aviation fuel plant in Rotterdam .
Government procurement, which accounts for about a quarter of global steel demand and 40% of cement use, will play a key role in creating markets for green products.
De La Salle said policy interventions are also needed, including new product standards, carbon pricing mechanisms and even forcing consumers to buy greener products.
“We really need governments to improve conditions and strengthen the investment case, and the investment case is only strong when one simple thing happens – when you have buyers who want what you need, prepared to pay for it.
