Net-zero transformation enablersTechnology Capital DemandPolicyInfrastructureReadiness framework – the five readiness dimensions of industry net-zero transformation FIGURE 3 The underlying framework of the tracker combines two complementary lenses to track industries’ progress on the ground – performance and readiness. Performance refers to the drivers of industry net GHG emissions, including industry output, emission and energy intensity, value chain emissions and energy mix. To measure industry readiness for net-zero transformation, a scoring system has been developed across five readiness dimensions: –Technology: Are the technologies needed for net-zero emissions commercially available? –Infrastructure: Is the infrastructure to enable use of low-emission technologies available? –Demand: Can the market support low-emission products, given the green premiums and 2030 project progress? –Capital: Are returns sufficient to drive investments towards low-emission assets? –Policy: Are the supporting policies to enable the growth of low-emission industry in place? Each of the five dimensions is scored by averaging the values of its sub-dimensions, which are scored on a scale of 1 to 5. A detailed methodology can be found in the appendices. Each sub-dimension has specific thresholds. Dimensions rated at stage 5 demonstrate significant advancements towards net-zero goals, while stage 1 indicates that substantial progress is still required. For instance, in technology readiness levels (TRL), a score of 1-3 indicates that the technology is in the concept stage, 4-6 signifies prototype testing, 7-8 indicates the demonstration phase, 9 represents early adoption and 10-11 indicates a fully developed, mature technology. A detailed methodology can be found in the appendices. The targets in the tracker refer to the 2030 and 2050 emission intensity thresholds based on sector-specific net-zero trajectories used for the analysis. These trajectories are scenarios based on the analysis of data from the International Energy Agency (IEA) Net Zero by 2050,11 the International Air Transport Association’s (IATA) net-zero roadmaps,12 the International Civil Aviation Organization’s (ICAO) long-term aspirational goal (LTAG),13 the International Maritime Organization’s (IMO) GHG strategy,14 the International Aluminium Institute’s (IAI) GHG pathways,15 and the IEA’s net-zero report on oil and gas.16 Business-as-usual (BAU) trajectories have also been considered based on the International Council on Clean Transportation (ICCT), the IEA’s Stated Policies Scenario17 and Mission Possible Partnership’s (MPP) sector- specific trajectories.18 These trajectories have been used for this analysis only and are not a final recommendation for the sectors. Net-Zero Industry Tracker: 2024 Edition 11

Net Zero Industry Tracker 2024