Net Zero Industry Tracker 2024

Current emissions The eight hard-to-abate sectors in scope collectively contribute to around 40% of direct CO2 equivalent (CO2e) emissions. This includes five heavy industry sectors (steel, cement, aluminium, primary chemicals, and oil and gas) and three heavy transport sectors (aviation, shipping and trucking). Emissions historical trend From 2019 to 2023, the total direct CO2e emissions for the sectors in scope decreased by 1.2%. The decline in emissions was mainly driven by aviation, cement, and oil and gas, and was partially offset by an increase in emissions in trucking and chemicals. Trucking saw the highest increase of 6.2%,19 while aviation emissions declined the most, with a reduction of 8.4%.20 More recently, from 2022 to 2023, the total absolute direct CO2e emissions for the sectors in scope decreased by 0.9%. This decline in emissions was mainly driven by oil and gas and cement, and was partially offset by the increase in emissions in aviation, steel and shipping. Aviation saw the highest increase of 17.6%,21 while oil and gas emissions declined the most, with a reduction of 6.4%.223.1 Performance 2019 vs. 2023 absolute direct CO2e emissions by sector in gigatonnes (Gt) CO2e FIGURE 5 Year-over-year (YOY) change** 2019 20231 2 3 4 5 6 0Oil and gas* -4% -6%Primary chemicals+6% -0.1%Aluminium -1% +0.4%Cement -4% -2%Steel +2% +3%Trucking +6% +1%Shipping -1% +2%Aviation -8% +18% Notes: *Oil and gas data for 2018-2022 since 2023 data is not available; **YOY change represents 2023 vs. 2022 (except for oil and gas, which is 2022 vs. 2021). Sources: IEA and IAI. From 2019 to 2023, the sectors in scope saw a 4.1% decline in emissions intensity on average. All sectors (except steel) saw a decrease in emissions intensity in this period, with the highest drop of 13.7%23 seen in trucking, closely followed by a 13.6%24 drop in aluminium.More recently, from 2022 to 2023, the sectors in scope saw a 1.2% decline in emissions intensity on average. All sectors except steel and shipping saw a decrease in emissions intensity in this period, with the highest drop of 14.1%25 seen in aviation. Net-Zero Industry Tracker: 2024 Edition 14