Scaling the Industrial Transition 2025

Enabling systems for industrial transformation2 The foundations of industrial transition exist; what’s missing is synchronized execution across five enablers: technology, demand, policy, infrastructure and capital. Technology is advancing but unevenly deployed Renewables are scaling, electrification is expanding and early commercial projects in hydrogen and CCUS are taking shape. Yet deployment remains uneven. Most core technologies are technically viable but not yet commercially deployable at scale, constrained by cost, permitting and demonstration risk. Policy is diverging into regional compliance models Verified carbon data, product standards and pricing mechanisms are becoming conditions for market access, but frameworks are evolving unevenly across regions. This creates a multi-speed policy environment that influences competitiveness and investment risk. Capital is selective, not scarce Investment remains resilient but highly concentrated, increasingly directed towards projects that are bankable and can demonstrate deliverability – with credible offtake agreements, verified carbon data and reliable access to clean power. From readiness to deliverability The transition is now defined by the effective alignment of five key system enablers – technology, demand, policy, infrastructure and capital – to turn proven solutions into investable, scalable. Demand is forming but still too thin Green procurement, buyers’ alliances and border measures are emerging, yet volumes and green premiums and regional policy and regulatory consistency (varying mandates and targets) remain insufficient to drive industrial-scale investment. Infrastructure is the bottleneck Grid, CO2, hydrogen and port systems are growing too slowly to match generation and industrial demand, trapping ready projects between pilot and commercial scale. Key takeaways Scaling the Industrial Transition: Hard-to-Abate Sectors and Net-Zero Progress in 2025 13