Foreword The industrial transition has entered its decisive period. Across hard-to-abate sectors, the technologies required to cut emissions are proven. About half of industrial emissions can already be abated with mature solutions; the rest will depend on deeper innovation, stronger policy and enabling infrastructure. The task ahead is rapidly scaling solutions globally and profitably, ensuring the path to net zero strengthens industrial competitiveness and economic growth. Scaling the Industrial Transition: Hard-to- Abate Sectors and Net-Zero Progress in 2025, developed by the World Economic Forum in collaboration with Accenture, captures this pivotal moment. Building on the Net-Zero Industry Tracker framework, it assesses progress across eight sectors that together account for nearly 40% of global greenhouse gas emissions. This year’s analysis marks a moment of adjustment and acceleration: progress is real but uneven. The next phase will hinge less on breakthroughs and more on deploying proven solutions that deliver security, competitiveness and sustainability. Clean technologies are advancing, but deployment is constrained by high costs, policy fragmentation and infrastructure gaps. The focus is shifting from “Can we?” to “Can we deploy at cost and at scale?” under tightening economic, policy and energy constraints. Climate policy is moving from voluntary ambition to enforced accountability, but unevenly across regions, complicating trade and investment. Artificial intelligence (AI) and digitalization are projected to drive nearly 10% of global electricity growth by 2030, forcing industries to secure low-carbon power. Meanwhile, supply chain concentration in critical minerals has become a key area topic of discussion.Four trends characterize this next phase: 1 Economic viability: Technologies are available, but scale depends on cost competitiveness, financing models and risk sharing. A 5% rise in interest rates can raise wind and solar costs by about 30%. 2 Integration: Synchronized investment in grids, carbon dioxide and hydrogen infrastructure, ports and industrial clusters is essential. Grid spending, about $400 billion annually today, may rise to $483 billion by 2030, yet BloombergNEF (BNEF) estimates $811 billion per year will be required for net zero. 3 Accountability: Verified carbon intensity is becoming central to licensing, financing and trade. The EU’s Carbon Border Adjustment (CBAM) and expanding Emissions Trading System (ETS) frameworks will cover over 45% of regional industrial emissions by 2030. 4 Innovation: Progress depends on lowering the cost of capital, building shared infrastructure and aligning global standards. Fewer than 10% of hydrogen projects and under half of carbon capture, utilization and storage (CCUS) projects have reached final investment decision (FID). The main barrier is not technology, but a lack of clear policy and reliable demand. The transition is entering a more complex phase marked by regional divergence and system interdependence. Success will depend on how effectively markets, governments and industries align across demand, policy, infrastructure and capital to make proven technologies investable at scale. This paper calls for collective action to scale what works today, de-risk the next wave of innovation and deliver competitive, clean industrial systems.Roberto Bocca Head, Centre for Energy and Materials; Member of the Executive Committee, World Economic ForumDavid Rabley Managing Director; Global Energy Transition Lead, Accenture Scaling the Industrial Transition: Hard-to-Abate Sectors and Net-Zero Progress in 2025 December 2025 Scaling the Industrial Transition: Hard-to-Abate Sectors and Net-Zero Progress in 2025 33

Scaling the Industrial Transition 2025