A2 Readiness criteria Criteria for assessing the readiness dimensions TABLE 20 Dimension MetricCalculation methodologyWeightThresholds Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 TechnologyTechnology readiness level (TRL)Weighted average of TRL calculated based on decarbonization levers100%TRL 1-3 Concept stageTRL 4-6 Prototype stageTRL 7-8 Demonstration stageTRL 9 Early adoption stageTRL 10-11 Mature stage InfrastructureInfrastructure required for net zero by 2050Weighted average of the individual stage gate scores for each energy type based on 2050 requirement – current capacityClean power (GW) Weights based on decarbonization levers for each sector>300 100-300 30-100 0-30 <0 Clean hydrogen (MTPA)>75 50-75 30-50 10-30 <10 CCUS (MTPA) >750 500-750 250-500 100-250 <100 Biofuels (MTPA)>500 250-500 100-250 0-100 <0 DemandPrice elasticity of demandAbsolute value of price elasticity of demand (long-run)25% >1 0.75-1 0.5-0.75 0-0.5 <0 B2B green premiumAdditional cost to produce green product (%)25% >20% 15-20% 10-15% 5-10% <5% B2C green premiumIncrease in final price for end consumer (%)25% >6% 4-6% 2-4% 0-2% <0% Current green supplyMPP: percentage of projects announced from 2030 target25% <10% 10-25% 25-50% 50-100% >100% CapitalRequired increase in capitalAdditional annual CapEx for decarbonization by 2050/ current annual CapEx20% >1 0.5-1 0.25-0.5 0.1-0.25 <0.1 Capital efficiencyTotal CapEx required by 2050/ total CO2 emission reduction by 2050 ($/tCO2)20% >200 150-200 100-150 50-100 <50 Ease of increasing capitalSector-specific WACC (%) 20% >10% 8-10% 6-8% 4-6% <4% Current financed projectsMPP: percentage of projects financed from 2030 target20% <5% 5-10% 10-15% 15-20% >20% Current return marginsFree cash flow after debt/revenue (%)20% <10% 10-15% 15-20% 20-25% >25% PolicyAvailability and maturity of policyAvailability and maturity of policy across regions and globally100% Qualitative Net-Zero Industry Tracker: 2024 Edition 133

Net Zero Industry Tracker 2024