From ‘Hard to Abate’ to ‘Priority to Abate’
Heavy industry, including steel, cement and chemicals, produces nearly 30 percent of global CO₂ emissions, yet it remains central to economic growth and development. At the same time, proven technologies such as clean hydrogen, electrified heat, efficiency upgrades and carbon capture can cut emissions across these sectors while sustaining productivity and competitiveness.
But scaling these solutions requires investment. Today, less than 20 percent of global clean energy finance reaches developing economies, and without greater support, industries across Africa, Asia and Latin America will remain locked into high-carbon production for decades to come.
It’s Hard to Finance - Not Hard to Abate
Future emissions and industrial growth will concentrate in emerging economies. Sub-Saharan Africa has enough renewable energy potential to power the continent many times over: its solar resources alone could generate more electricity than the entire world consumes today — yet only a fraction has been tapped.
Local industries are already proving what’s possible, from solar-powered manufacturing in Kenya to hydrogen-ready steel in Ghana. Yet the cost of capital in these regions is often two to three times higher than in advanced economies. Redirecting global investment is therefore essential to making these technologies affordable.
Shaping a New Industrial Agenda
Reframing industrial decarbonisation as a “priority to abate” creates new opportunities for countries and businesses across the Global South. Deploying clean industrial technologies can drive growth, strengthen competitiveness and attract investment. International partnerships such as Mission Efficiency, the Green Industrialization Hub, and Energy Transition and Investment Plans are already showing how technology transfer, affordable finance and workforce development can help countries expand clean industries at scale.
This paper launched at COP30 by the G7 Climate Club, an initiative under Germany’s G7 presidency in 2022 that now includes 46 member governments, to accelerate global industrial decarbonization by aligning international efforts.
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