Low-carbon technologies – policy developments, industry examples and momentum by sector (continued)TABLE 6 Biofuels/SAF Sector Policy development Industry example AviationReFuelEU mandates: 2% SAF blending in 2025, rising to 70% by 2050117SAF production projected to reach 2MT in 2025 CementNational circular-economy frameworks support biomass co-firing11875% of Indian cement firms use biomass as alternative fuel119 TruckingLow Carbon Fuel Standard and renewable diesel standards (California, EU)120Renewable diesel gaining market share121 ShippingIMO life cycle GHG regulation under discussion FAME (fatty acid methyl ester) and HVO (hydrotreated vegetable oil) biofuels used in existing fleets122 Chemicals N/ABio-naphtha used for sustainable chemical feedstocks, green premiums declining123 Energy storage Sector Policy development Industry example CementIndustrial electrification incentives in EU and Asia Lithium-ion and hybrid storage for peak-load management ShippingN/AOffshore hybrid systems (lithium-ion, compressed air) emerging124 AluminiumChina encourages aluminium producers to participate in power load regulation and energy storage to stabilize grids with high renewable penetration in its Integrated Energy System Solutions for Zero-Carbon Industrial Parks125Lithium-ion and supercapacitors adopted for process flexibility Oil and gas N/ABy-product hydrogen used for internal energy storage126 AviationN/AIntegration of battery storage with hybrid propulsion systems, enabling short-range flight capabilities127 CCUS Sector Policy development Industry example CementEU Innovation Fund and national carbon capture and storage (CCS) strategiesHeidelberg Materials building world’s first 1MT of CO2 per year capture project ShippingAt MEPC 83, the Marine Environment Protection Committee approved a dedicated work plan to develop a regulatory framework for onboard carbon capture and storage (OCCS) systems128Onboard carbon capture trials ongoing, technology still nascent129 Oil and gasUS 45Q, EU CBAM and national CCUS hubs CCUS with steam methane reforming for blue hydrogen130 Scaling the Industrial Transition: Hard-to-Abate Sectors and Net-Zero Progress in 2025 25

Scaling the Industrial Transition 2025