Global demand for energy continues to rise, with consumption growing by roughly 2% in 2024, driven largely by countries outside the Organisation for Economic Co-operation and Development (OECD).³ At the same time, the race to decarbonize is reshaping global competition. As of mid-2025, 140 countries, representing over 90% of global GDP , have announced or are considering net-zero targets, and a growing share of major companies are moving to decarbonize their operations.4 Yet the world remains far off track. In November 2025, the United Nations Environment Programme (UNEP) reported that even if all current Nationally Determined Contributions (NDCs) are fully implemented, projected warming over this century is still 2.3-2.5°C and up to 2.8°C under current policies – only a marginal improvement from last year.5 This underscores a widening gap between rising ambition and real-world emissions reductions and makes clear that current efforts are not yet sufficient to keep climate goals within safe reach. Momentum is nonetheless building: 61 countries updated their NDCs in 2025, intensifying the search for scalable solutions that combine competitiveness with low emissions.6 Increasingly, the focus is on robust business models that strengthen industrial resilience, particularly as energy security is challenged by shifting geopolitical dynamics. Industrial sectors such as aluminium, cement, steel, chemicals, aviation, shipping and trucking are at the heart of this transition. They account for roughly 40% of global greenhouse gas emissions and are fundamental to economic output and jobs.7 Decarbonizing these hard-to-abate sectors is complex and will require unprecedented innovation, investment and collaboration. Key barriers to heavy industry’s transition remain: –Technology and market readiness: Many clean technologies are still maturing, and scalable solutions are not always available. –High capital costs: Significant upfront investment is required for industrial retrofits and new infrastructure, which can deter stakeholders, particularly in uncertain markets. –Supply chain constraints: Underdeveloped end-to-end value chains for emerging technologies and materials limit their ability to scale up. –Policy and permitting: Lengthy approvals and inconsistent regulatory support can stall projects, creating uncertainty for investors. Addressing these barriers is an economic and competitiveness imperative. Investment will ultimately follow returns, so scaling-up low-carbon industrial projects depends on providing credible profitability and risk-adjusted performance. With an estimated $30 trillion in additional investment needed by 2050 to decarbonize hard-to- abate sectors, progress will depend on strong market pull, stable policy and risk reduction that materially improves project economics. Well- organized industrial clusters have a key role to play in making the transition investable and internationally competitive.81.1 The state of play for industrial transformation From Blueprint to Reality: A Stronger Business Case for Shared Energy Infrastructure 6

From Blueprint to Reality 2026