Industries account for around a quarter of global greenhouse gas (GHG) emissions annually, according to the Intergovernmental Panel on Climate Change (IPCC)’s analysis in the Climate Change 2023 Synthesis Report. With global efforts intensifying to curb emissions, transforming industrial processes is no longer optional – it is essential for meeting the goals of the 2015 Paris Agreement.
Recognising this urgency, the Mitigation Action Facility (MAF) has made the industry sector one of its three key priority sectors. Currently, we are supporting eight projects aimed at reducing industrial emissions and two cross-sectoral projects that involve an industry focus, from facilitating the widespread use of green steel in India and South Africa to promoting sustainable practices in Brazil and Vietnam. Projects targeting the industry sector account for 23% of our active portfolio.
Why Decarbonisation Efforts must go beyond Industrialised Countries
Why does MAF focus on newly-industrialising and developing countries? Our new video addresses this question, challenging common perceptions about global decarbonisation strategies. The video highlights the significant benefits of supporting newly-industrialising and developing countries in transforming their industrial processes. These benefits include:
- Economic green growth and the avoidance of high debt burdens.
- Improved environmental conditions, particularly air quality.
- Social advancements, such as the creation of well-paid jobs, enhanced gender equality and social inclusion (GESI) indicators, and training in high-skilled technical roles.
At the MAF, we are committed to expanding access to technical knowledge on industrial decarbonisation. In October 2024, we hosted an Industry Sector Workshop in Berlin which brought together industry experts, implementation partners, and our own TSU advisors to discuss ways forward in decarbonising the hard-to-abate industrial sub-sectors: cement, chemicals, and steel – by examining challenges, opportunities, and technological solutions in various country contexts within the MAF portfolio. The video underscores that these three sectors alone account for 18% of GHG emissions worldwide, reinforcing the importance of the MAF’s strategic focus.
The MAF’s achievements in Industrial Decarbonisation
Since the MAF began, we have successfully supported the completion of two industry-focussed projects:
- Thailand Refrigeration and Air Conditioning directly mitigated 530,000 tCO₂.
- Colombia Refrigeration led to the mitigation of 243,448 tCO₂.
The impact of targeted action in this sector is clear. Looking ahead, four out of the seven projects selected as part of the Call for Projects 2024 intend to tackle industrial emissions. These projects, once implemented, have the potential to mitigation more than 3.8 million tonnes of CO₂ combined. Our focus remains on accelerating decarbonisation, particularly in the hard-to-abate sectors.
Looking forward
Effectively communicating the importance of industrial decarbonisation is essential to our mission. As showcased in our video, now is the time to support initiatives that drive meaningful change in the industry sector. Insights from the Industry Sector Workshop continue to shape project selection and sectoral engagement strategies. With the Call for Projects 2025 selection process underway, we anticipate further expansion of our industry-focused portfolio in the coming year. By building upon the success of our existing projects, the MAF remains committed to accelerating the transition towards fully green industrial processes. Watch our new video to learn more about how we are driving industrial decarbonisation worldwide.
