Opportunity 7: Co-invest in climate technologies development, infrastructure and market creation Industrial companies, especially multinationals, can take an active role in shifting and scaling investments into viable low-carbon technologies (e.g. green hydrogen, renewable energy, carbon capture and removal, infrastructure, new business models, and market creation) to enable their net- zero pathway. Moreover, according to Capgemini and Breakthrough Energy’s 2020 report, Fit for Net Zero, scaling investment in climate technologies can achieve dramatic emissions reduction (e.g. 55% CO2 reduction by 2030 in Europe) while creating attractive returns on investment. Every €1 invested in this clean technology portfolio is expected to generate €9 of future turnover in European markets by 2050.19 Conversely, the public sector can not only co-invest, but also simplify and reduce permitting delays to enable faster shared infrastructure development. One example is Germany’s Hydrogen Acceleration Act, which is anticipated to be implemented by the end of 2024. Industrial clusters, such as the one in Dunkirk (see case study 9), are successful examples of co- located companies collaborating with public actors to co-invest in climate technologies’ development and showcase significant impact. CASE STUDY 9 ArcelorMittal and the French government leading an industrial cluster in Dunkirk for the scaling up of climate technologies Challenge Dunkirk’s industrial cluster emits 16 megatonnes (Mt) of CO2 annually, contributing to 20% of France’s industrial emissions. The challenge was to significantly reduce emissions in line with national and international climate targets (55% GHG emissions reduction by 2030 and net zero by 2050), while maintaining economic growth and operational efficiency.20 Solution Through the France 2030 investment plan, the French government allocated €5.6 billion to support the transition to a green economy via new business models such as Zone Industrielle Bas Carbone (ZIBAC). Dunkirk’s ZIBAC is a consortium operated by Euraénergie, which oversees and steers all the projects to drive unified territorial sustainability development efforts like the “DKarbonation” project. Key private partners from various sectors, such as energy, logistics and chemicals, have joined forces with key public actors – such as centralized clearance for import (CCI) territory, the urban community and the maritime port – to operate within the industrial cluster of Dunkirk. As one of the key partners, ArcelorMittal has planned to install electric furnaces and blast furnaces with direct reduced iron (DRI) technology and implement CO2 capture technologies, aiming to capture 4,400 tons of CO2 annually. The French state directly contributed to support ArcelorMittal with a €850 million subsidy for decarbonization and helped to structure ZIBAC with €17 million, including €4 million for feasibility studies on innovative projects like low-carbon hydrogen production and a “heat highway”. Impact With over 460 companies involved, Dunkirk is set to become a leading European hub for the green industry, reducing its carbon footprint and aligning with France’s net-zero goals by 2050. This public-private collaboration is expected to enhance the attractiveness of the industrial cluster, stimulating economic growth while ensuring a sustainable industrial ecosystem. The collaboration between public and private entities exemplifies a robust model for achieving regional decarbonization objectives. Source: Dunkerque Énergie Créative. United for Net Zero: Public-Private Collaboration to Accelerate Industry Decarbonization 22

United for Net Zero Public Private Collaboration to Accelerate Industry Decarbonization 2025