Net Zero Industry Tracker 2024

Comparison of key cross-sector policies FIGURE 21 0% 50% 100%Policy type Emissions-reduction scope (by 2030)EU NZIA EU ETS EU CBAM Japan GX Policy US IRAMandate-based Market-based Incentive-basedNote: This figure excludes China and India’s policies, which focus on emissions intensity reduction. Source: Accenture analysis based on data from European Commission, Climate Cooperation China, Climate Action Tracker, U.S. Department of Treasury and InfluenceMap (Japan). In the last year, while the eight hard-to-abate sectors in scope have seen some progress in terms of emissions intensity reduction, their efforts have led to limited movement in their readiness scores across the five readiness dimensions. Going forward, these sectors must accelerate efforts to reduce emissions intensity to achieve their respective net-zero ambitions by 2050. In order to increase momentum, the key stakeholders across these sectors must consider the following priorities as the main impact drivers, and explore areas of collaboration:3.3 Key priorities Key priorities for stakeholders impacting the transition for hard-to-abate sectors FIGURE 22 While collective efforts on these key areas of collaboration can potentially enable a faster transition to net zero, the implementation of sector-specific strategies will be critical for each of the hard-to-abate sectors to successfully achieve their net-zero ambitions by 2050.Policy-makers Targets: Set short-term targets for emission reductions, maintaining long-term vision Innovation: Incentivize R&D and scaling for H2 and derivatives, CCUS Tariffs: Reduce/delay tariffs on sectors with high green premiums Equity: Address affordability, supply security and equity in policy-makingIndustry bodies Standards: Set carbon standards with clear thresholds Transparency: Provide publicly available data, especially on green premium of offtake agreements Collaboration: Promote industrial hubs and collaboration Demand: Aggregate demand/offtake agreementsCompanies Electrification: Electrify as much as possible, especially where low- carbon power is available Commitment: Commit to short-term emission reduction targets Investment: Invest in lower emission/transition fuels Circularity: Enhance circularity through supply chain traceability capabilities Carbon reporting: Build a strong digital core with accurate and auditable data on product-level carbon reportingCustomers/consumers Circularity: Embrace circular economy practices like recycling and reducing waste Transparency: Advocate for transparency in product emissions and carbon footprints Green products: Choose low-carbon, sustainable products to boost demand for green and energy- efficient products Net-zero alignment: Support companies aligned with net-zero goals through purchasing choicesFinanciers De-risk investments: Provide equity for high-risk/ high-return investments and debt for low-risk/ low-return investments Capital efficiency: Channel funds to major production hubs where impact is biggest ESG factors: Consider special ESG factors for hard-to-abate sectors and prioritize financing Novel instruments: Develop innovative financial instruments that promote capital flow Create financial models and environmental, social and governance (ESG) criteria together that support innovations in hard-to-abate sectorsFinancial instruments Leverage synergies and drive technological innovationIndustrial hubs/clusters Promote transparency across stakeholders by data sharing and sustainability reportingData sharing and reportingCollaboration areas Net-Zero Industry Tracker: 2024 Edition 39