The aviation and shipping sectors are advancing through the use of sustainable fuels, efficiency gains and emerging hydrogen- and ammonia- based propulsion. The steel, aluminium and cement sectors are moving towards hydrogen, electrification, recycling and carbon capture. Trucking is pursuing battery-electric and hydrogen fuel-cell technologies. Meanwhile, oil and gas and petrochemicals are focusing on methane abatement, CCUS integration and low-carbon feedstocks to support industrial clusters and cleaner material value chains. While most core technologies are technically viable, few are commercially deployable at scale. Hydrogen, CCUS, advanced biofuels and small modular reactors (SMRs) remain constrained not by science but by cost, permitting and demonstration risk, limiting bankability and slowing replication. Solar photovoltaic (PV) systems continue to dominate, attracting roughly $450 billion in 2025,24 while nuclear investment has increased by 50% in five years.25 Yet critical imbalances persist – grid investment (approximately $400 billion annually)26 lags generation growth, leaving system bottlenecks that hinder industrial electrification. Across sectors, the transition has entered a new phase – complementing incremental efficiency gains with a redesign of fuel and material systems (Table 4). While readiness has advanced, deployment remains uneven, revealing where supportive policy and capital frameworks are still lacking.2.1 Technology landscape is advancing but uneven Status of key low-carbon technologies TABLE 4 Technology Current momentum Main enablers Key barriers Renewable electricityMature and expanding, solar alone expected to attract $450 billion in 2025 investment27Falling capital expenditure (CapEx), corporate power purchase agreements (PPAs), strong policy supportGrid congestion, storage integration and permitting delays Energy storageFastest-growing segment: projected 35% growth in 2025 (94GW*/247GWh**)Policy incentives, falling LFP*** battery costs, system balancing needsHigh upfront costs, supply-chain volatility, weak revenue models Biofuels/SAFProduction scaling under mandates, SAF expected 2 MT in 202528Mandates (ReFuelEU), corporate offtakes, green bonds, book-and- claim systemsFeedstock limits, 2–5-fold cost premium, slow tech commercialization29 HydrogenDeployment uneven, IEA cut 2030 low-emission outlook approximately 25% amid project delays30Subsidies like the IRA, EU Hydrogen Bank, industrial clusters, offtake contractsHigh production cost, permitting and transport infrastructure gaps NuclearPolitical momentum and 50% investment rise in three years since 2020 ($60 billion)31Energy-security focus, advanced designs, public-private R&DLong timelines, financing risk, regulatory and supply bottlenecks CCUSAround 60% of planned capacity now advanced or under construction32Policy support (US Department of Energy, EU Innovation Fund), cluster development, offtake modelsPermitting delays, storage access, fragmented business models Efficiency and digital solution s5–10% potential cut in global greenhouse gas (GHG) emissions by 2030 through AI-enabled solutionsAI optimization, automation, data transparencyLimited interoperability, uneven adoption in emerging markets *gigawatt; **gigawatt-hour; ***lithium ferrophosphate Note: A detailed table with sector-specific examples for relevant technologies is shown in the Appendix. Source: World Economic Forum. Many low-carbon technologies are proven, but scaling is held back by high costs, permitting delays and infrastructure gaps. Scaling the Industrial Transition: Hard-to-Abate Sectors and Net-Zero Progress in 2025 14

Scaling the Industrial Transition 2025