Asia's Carbon Markets Strategic Imperatives for Corporations 2025

Roadmap step #3: Emissions reduction levers Businesses must systematically assess decarbonization technologies and levers that are tailored to their industry context. The feasibility, scalability and cost-effectiveness of these levers differ across sectors and regions. For example, in the case study of China National Building Material Group (CNBM), an innovative financing approach was derived from the carbon market mechanism to support decarbonization lever development (see Case Study 1). In Baofeng Energy’s case, a forward-looking commitment and investment to green hydrogen has not only led to decarbonization but has also created new opportunities for business growth (see Case Study 8). Figure 11 highlights potential decarbonization levers for high-emissions industries in China, emphasizing the need for adaptive prioritization as market dynamics evolve. Potential decarbonization solutions for key industries in China FIGURE 11 Notes: This figure is illustrative and non-exhaustive; low-c = low-carbon; SAF = sustainable aviation fuel; AL = aluminium; H2 = hydrogen; BOF = basic oxygen furnace; EAF = electric arc furnace; CCS = carbon capture and storage; CCUS = carbon capture, utilization and storage. Source: Bain & Company analysis.Short-to-medium timeline to implement Long timeline to implementCCUS in smelting/ refining CCSReutilize captur ed gasCCS CCS for lime kilns processPower Steel Constructi on materials (cement) Non-ferro us metals (aluminium ) Petroche micals Chemicals Papermaking AviationCCS CCSEnhanced batteryCombined cycle BOF to EAF; EAF to better EAFNatural gas blendingScrap steel as raw material High- efficiency millsClinker substitutionOxyfuel comb., amine-scrubbingAutomated process Switch to new smelting tech (e.g. inert anodes, chloride-based electr olysis) High- efficiency methane mgmt.Electrifi- cationLight feedstocksScrap AL as raw material Refine process efficiencyGreen energyGreen feedstockEnergy efficiency/ Process optimizationCCUS Hydr o storageAmmonia co-fir ed plants H2 blending Raw mix optimizationSolar , wind, bioNuclear , geothermal Low-c fuels/ biogasWaste heat/gas recycling Hydr ogen, biomassWaste heat recycling Clean energy boilersVapour/ waste heat recycling Clean energy crackingWaste heat recycling Waste water heat exchangerWaste heat recycling SAFElectric/ hydrogen/ hybrid aircraftClean asset/pr oduct transition (balance to low-c fuels) Electrifi- cationShift manufactur e route with green H2Deploy moder n boilerMembrane technology Higher efficiency lime kilns/black liquorFalling film evaporation Network/air traffic optimizationElectrification for ground equipment Asia’s Carbon Markets: Strategic Imperatives for Corporations 28