Net Zero Industry Tracker 2024

Capital The primary chemicals industry will require additional capital investment of $6.5 trillion506,507 by 2050 to develop and implement low-emission technologies and infrastructure, 60% of which is for ammonia. Maximizing the efficiency of existing infrastructure will remain the most practical approach in the near term, which involves retrofitting existing plants and increasing circularity. However, the majority of future investments will focus on expanding capacity, necessitating the construction of new facilities. While optimizing current assets can yield immediate returns, long- term growth will rely heavily on better returns and low B2B premiums for the manufacturers. The product carbon footprint (PCF) for each chemical product can vary significantly based on its production process, raw material sourcing and energy use. Transitioning to greener products often hinges on both the willingness of consumers and industries to invest in these sustainable options, as they typically involve higher costs. A flexible allocation model like mass balance is an excellent approach in such cases. It allows manufacturers to balance renewable and non- renewable inputs without having to fully retool production for every single product. By using mass balance, companies can allocate a portion of their sustainable resources to specific products, effectively supporting the market shift towards greener products without making drastic, immediate changes to all production lines. This approach can accelerate the transition while remaining adaptable to evolving demand and willingness to pay for sustainable options. Enabled by the ecosystem (around 51% of total investments)Investments by the sector (around 48% of investments)$6.5 trillion required in investment by 2050 Hydrogen, bioenergy and renewables CCUS Circularity and demand reductionSwitch production from fossil to renewable feedstock sources Invest in R&D for low-TRL technologies Retrofit legacy infrastructure Invest in CCUS and DAC technology Adopt measures for waste management Scale circularity and plastics recycling Abate end-of-life chemicalsDigitize the value chain and disclose key environmental system data Renewable electricity production Demand creation via offtake agreements Build CO2 capture plants Fast track critical innovations to commercial scale De-risk large-scale financial investmentInvestments required by the sector and enabled by the ecosystem FIGURE 64PRIMARY CHEMICALS Net-Zero Industry Tracker: 2024 Edition 116