Net Zero Industry Tracker 2024

Executive summary This is the first time since the launch of the Net Zero Industry Tracker report that there has been a reduction in absolute emissions of hard-to- abate sectors in scope. Sectors have reduced absolute emissions by 0.9% between 2022 and 2023, compared to total global energy-related emissions increasing by 1.3%.3 Emissions intensity decreased by 4.1% between 2019 and 2023, with an accelerated 1.2% drop in the last year. Five out of eight sectors in scope reduced emissions intensity in the last year, i.e. aluminium, cement, chemicals, aviation and trucking. Additionally, energy intensity decreased by 3.2% in 2022 in these sectors, 1.6 times more than the global level.4 To gain the required trajectory for net zero, an estimated $30 trillion in additional capital is required by 2050 for the sectors in scope. This figure represents around 45%5 of the total incremental net-zero investment required by 2050. This need for investment is particularly challenging given the competitive profit margins of most of these sectors, which limits companies’ capacity to absorb the substantial costs while maintaining adequate profitability. Data and artificial intelligence (AI) have emerged as powerful tools to support the transition to net zero. Accenture estimates that use of generative AI could improve capital efficiency by 5-7%, reducing capital requirements of hard-to-abate sectors by $1.5-2 trillion for the net-zero transition. Additional value levers include asset management and energy efficiency, research and development (R&D) acceleration, and enhanced transparency through product-level reporting. However, the increased use of AI is expected to raise electricity demand, potentially competing with hard-to-abate sectors for access to low-carbon power.A system-wide approach versus point solutions is needed in hard-to-abate sectors to effectively transition to net-zero emissions by 2050. Net-Zero Industry Tracker: 2024 Edition 4