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

Assessment of global progress towards 2030 for selected industry indicators FIGURE 1 Industry Increase the share of electricity in the industry sector's final energy demand to 35-43%. 2010 2021 203080%Industry Lower the carbon intensity of global cement production to 360-370 kgCO2/t* cement by 2030. 2010 2020 2030700 kg CO2/t cementIndustry Increase green hydrogen production capacity to 58 Mt.** 2010 2030100 Mt4x >10X N/A Historical data2935-43 Historical data360-370660 2021Historical data0.02758 Technological carbon removal Scale up the annual rate of technological carbon removal to 30-690 MtCO2/year. 1,500 MtCO2/yearIndustry Lower the carbon intensity of global steel production to 1,340-1,350 kgCO2/t crude steel. 2010 2020 20302,500 kgCO2/t crude steelU-turn needed >10X 2010 2022 2030Historical data30-690 0.571,340-501,890 Right direction, well off track Wrong direction, U-turn neededHistorical data *Kilograms of carbon dioxide per tonne; **Million tonnes. Source: Systems Change Lab. (2023). State of Climate Action 2023. In terms of climate reduction pledges, the Science Based Targets Initiative’s (SBTi) SBTi Monitoring Report 2023 indicates that the global growth in the number of large companies with validated targets continues to increase. The report finds that the total number of companies with validated targets grew from 865 to 1,187 (a 37% increase) from 2021 to 2022, while there were 1,866 in total by the end of 2023 (a 57% increase from 2022). Similarly, 2,253 small- and medium-sized enterprises (SMEs) had an approved science-based target in 2023. Despite the promising trend, these numbers are still low compared to the total global population of companies, representing about 39% of the global economy’s market capitalization.7 The New Climate Institute’s Corporate Climate Responsibility Monitor 2023, which assesses the transparency and integrity of 24 major companies’ climate pledges and strategies, also found that only a minority of net-zero pledges represent credible commitments to deep decarbonization, while many remain highly ambiguous.8 In particular, climate pledges for 2030 fall well short of the economy- wide emission reductions required to stay below the 1.5°C temperature limit. What is the state of public sector action on net zero? A number of sources dedicated to tracking progress in the creation and implementation of industry- related climate policies highlight progress and shortcomings in various areas. For example, as of March 2024, 110 countries have pledged a net-zero target, with 96 aiming to reach this target by 2050 or before (see Figure 2). Most targets, however, are not legally binding and only 27 countries and the EU, representing 16% of global greenhouse gas (GHG) emissions, have enshrined these into law.9 United for Net Zero: Public-Private Collaboration to Accelerate Industry Decarbonization 6