Readiness assesses the impact of energy transition strategies within the industrial and transport sectors and discusses key cross-sector themes across the five readiness dimensions: technology, infrastructure, demand, capital and policy. –According to several scenarios cited in this report, the eight sectors are projected to reduce emission intensity by 93% by 2050. Key pathways for industrial sectors are process shifts, electrification and CCUS, while transport sectors focus on energy efficiency, hydrogen- based fuels and biofuels. –Notable progress has been made in technologies, including battery electric planes, hydrogen and hybrid electric planes, hydrogen bunkering, ammonia-powered engines in shipping, combining blast furnace-basic oxygen furnaces (BF-BOF) with bioenergy with carbon capture and storage (BECCS) in steel, hydrogen and CCUS in cement, and downstream electrification in oil and gas. –Infrastructure for clean power, clean fuels and CCUS requires significant expansion to meet the 2050 net-zero goal. Fossil fuels still account for about 90% of the energy used across these sectors, and less than 1% of the necessary infrastructure for the target energy mix has been established. –Demand for low-carbon products is increasing, but the gap between demand commitments and willingness to pay green premiums limits scaling. –To reach net zero by 2050, $30 trillion in investment is needed, with most sectors operating on limited margins, making it challenging for companies to absorb the additional costs needed to develop clean technologies while maintaining sufficient profits. –Policies can create an enabling environment for decarbonization and adoption of clean energy across industries to support the global 2050 net zero target. Target emissions To achieve net-zero emissions by 2050 and evaluate progress across the eight sectors, this section analyses target emissions for both BAU and net-zero emissions (NZE) scenarios. By 2050, according to several scenarios cited in this report, industries like shipping, cement and chemicals will need to nearly eliminate their direct emissions, while sectors such as aviation, trucking, and oil and gas will need to reduce direct emissions by 79%, 91% and 91%, respectively. These reductions highlight the significant efforts required across all sectors to achieve net zero, especially in those that face more challenges in reducing emissions.3.2 Readiness BAU 2050 and NZE 2050 emission intensity by sector FIGURE 10 8.078.3 -90%-100% Steel (tCO2 /t) Cement (tCO2 /t) Aluminium (tCO2 /t) Primary chemicals (tCO2 /t)Shipping (gCO2 /tnm) Oil and gas (kgCO2 /boe)Aviation (gCO2 /RPK) Trucking (gCO2 /tkm) BAU NZE107133.3 28.2-79% 37.2 3.4-91% 1.0 0.1-91% 1.0 -98% 0.38.5 -97%7.3 0.0 0.01.3 -98%0.0 Note: Emission intensity figures are not comparable between sectors due to different units for production volumes. Sources: IATA,30 IMO,31 IAI32 and IEA.33,34,35 Net-Zero Industry Tracker: 2024 Edition7

Net Zero Industry Tracker 2024 Cross Sector Findings