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

Current landscape of industrial decarbonization policies FIGURE 3 Industrial decarbonization policies Investment instruments Risk reduction mechanismsAlternative business models– Public ownership – Public-private partnerships – Loan guarantees; credit lines – Partial risk guarantees – Regulated returns– Equity funds – Public investment banks – Loans; export finance – Green bondsInformation -basedSubsidiesPricingVoluntary Regulation– Voluntary agreements – Voluntary disclosure/standards FinancialStandardsDemand-sideMandatory targets/ phaseouts Tax mechanismsCarbon pricing – Accelerated depreciation – Material pricing (virgin material levy; price stabilisers) – Capital allowances – Corporation tax, business rate, VAT reliefs– Carbon tax – ETS**: National/standalone – ETS: Linked– Extended producer responsibility obligations – Building/ planning regulations – Production standard (carbon disclosure, carbon cap, non-carbon specification) – Purchasing standard – Energy performance standard – Direct funding – Early replacement, retirement, repurposing incentives – Carbon contracts for difference– Knowledge sharing; roadmapping – Support for IP* protection: patent development – Industrial symbiosis schemes – Data infrastructure development – Labelling protocols *Intellectual property; **Emissions trading system Source: The Centre for Research in Energy Demand Solutions (CREDS), “Briefing: Industrial decarbonisation policies for a UK net zero target.” https://www.creds.ac.uk/wp-content/uploads/CREDS-Industrial-decarbonisation-briefing.pdf. Despite this apparent progress, the Climate Policy Database’s analysis of climate policies targeted at industrial net zero in G20 countries shows there are policy areas where significant progress is still needed (see Figure 4). Namely, these policy areas are: –Support for carbon capture and storage (CCS) –Support for fuel switching –Incentives to reduce methane (CH4) from fuel exploration and production –Incentives to reduce landfill CH4 –Incentives to reduce nitrous oxide (N2O) from industrial processes10 Additionally, consultations with industry leaders for this white paper underscored other key policy gaps, including the need for consistent reporting frameworks across geographies and timelines, and more comprehensive incentives for decarbonization within value chains. United for Net Zero: Public-Private Collaboration to Accelerate Industry Decarbonization 8