Unleashing the Potential of Industrial Clusters 2025

Conclusion and call to action Several challenges are hindering clean energy infrastructure scale-up To achieve global climate goals and advance the energy transition in transport, logistics and heavy industries, clean energy infrastructure must scale up rapidly. However, this involves overcoming challenges, such as the green premium, fragmented demand coupled with limited supply, a lack of a cohesive policy framework and inconsistent standards and certifications. Industrial clusters can play a key role in overcoming the challenges One strategy to overcome these challenges is to form industrial clusters – geographic hubs where firms are co-located. These clusters can offer economies of scale, share risks, and aggregate and optimize demand, playing a vital role across the clean energy value chain. This paper outlines three key solution areas through engagement with the TIC and the Supply Chain and Transportation communities. Industrial clusters can collaborate within and with their wider value chains to: 1. Develop a common vision at cluster level 2. Expedite the scaling of cluster-level clean energy initiatives 3. Strengthen collaboration across clusters and regionsCall to action The examples and case studies outlined in this white paper illustrate how industrial clusters and their respective value chains have catalysed efforts to develop clean energy infrastructure. While these examples mark significant progress, they remain insufficient to meet the objectives of the Paris Agreement. Greater collaboration is needed at local, national and international levels. Successfully transitioning industrial clusters requires four core components: 1) a balanced focus on economic, social and environmental value; 2) inclusive adoption of technologies and processes to reduce GHG emissions; 3) cross- sector collaboration among industry, government, financiers, labour and communities; and 4) coordinated, agile strategies across partnership, policy, financing and technology deployment. To achieve this, the Forum welcomes action by leaders from government, professional, industry, academic and R&D organizations supported by Forum initiatives such as TIC and the FMC to build a global community on infrastructure with a focus on three areas: –Mobilizing co-located companies: Support the cluster model for co-located companies, thereby optimizing opportunities for scale, sharing of risk/resources, aggregation and optimization of demand.  –Strengthening existing clusters and partnerships across the value chain: Enhance collaboration among co-located stakeholders and players across the entire clean energy value chain – spanning energy supply and distribution, heavy industry, transport and logistics – to effectively manage the green premium. –Connecting clusters into a global network: Support the expansion of cluster networks to establish a global infrastructure model and facilitate a more interconnected network. Unleashing the Full Potential of Industrial Clusters: Infrastructure Solutions for Clean Energies 40