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Physical and policy pathways to net‐zero emissions industry

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  • Christopher G. F. Bataille

Abstract

Several recent studies have identified emerging and near‐commercial process and technological options to transition heavy industry to global net‐zero greenhouse gas (GHG) emissions by mid‐century, as required by the Paris Agreement. To reduce industrial emissions with sufficient speed to meet the Paris goals, this review article argues for the rapid formation of regional and sectoral transition plans, implemented through comprehensive policy packages. These policy packages, which will differ by country, sector, and level of development, must reflect regional capacities, politics, resources, and other key circumstances, and be informed and accepted by the stakeholders who must implement the transition. These packages will likely include a mix of the following mutually reinforcing strategies: reducing and substituting the demand for GHG intense materials (i.e., material efficiency) while raising the quantity and quality of recycling through intentional design and regulation; removal of energy subsidies combined with carbon pricing with competitiveness protection; research and development support for decarbonized production technologies followed by lead markets and subsidized prices during early stage commercialization; sunset policies for older high carbon facilities; electricity, hydrogen and carbon capture, and storage infrastructure planning and support; and finally, supporting institutions, including for a “just workforce & community transition” and monitoring and adjustment of policy effectiveness. Given the paucity of industrial decarbonization perspectives available for in‐transition and less‐developed countries, the review finishes with a discussion of priorities and responsibilities for developed, in‐transition and less developed countries. This article is categorized under: Climate Economics > Economics of Mitigation Climate and Development > Decoupling Emissions from Development

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  • Christopher G. F. Bataille, 2020. "Physical and policy pathways to net‐zero emissions industry," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 11(2), March.
    • Handle: RePEc:wly:wirecc:v:11:y:2020:i:2:n:e633
    DOI: 10.1002/wcc.633
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    2. Ozili, Peterson, 2025. "Can monetary and fiscal policy reduce CO2 emissions? Analysis of regional country groups," MPRA Paper 124261, University Library of Munich, Germany.
    3. Gul, Eid & Riva, Lorenzo & Nielsen, Henrik Kofoed & Yang, Haiping & Zhou, Hewen & Yang, Qing & Skreiberg, Øyvind & Wang, Liang & Barbanera, Marco & Zampilli, Mauro & Bartocci, Pietro & Fantozzi, Franc, 2021. "Substitution of coke with pelletized biocarbon in the European and Chinese steel industries: An LCA analysis," Applied Energy, Elsevier, vol. 304(C).
    4. Wilson, Christian & Caldecott, Ben, 2023. "Investigating the role of passive funds in carbon-intensive capital markets: Evidence from U.S. bonds," Ecological Economics, Elsevier, vol. 209(C).
    5. Lopez, Gabriel & Galimova, Tansu & Fasihi, Mahdi & Bogdanov, Dmitrii & Breyer, Christian, 2023. "Towards defossilised steel: Supply chain options for a green European steel industry," Energy, Elsevier, vol. 273(C).
    6. Hörbe Emanuelsson, Anna & Rootzén, Johan & Johnsson, Filip, 2025. "Financing high-cost measures for deep emission cuts in the basic materials industry – Proposal for a value chain transition fund," Energy Policy, Elsevier, vol. 196(C).
    7. Alok Yadav & Anish Sachdeva & Rajiv Kumar Garg & Karishma M. Qureshi & Bhavesh G. Mewada & Mohamed Rafik Noor Mohamed Qureshi & Mohamed Mansour, 2024. "Achieving Net-Zero in the Manufacturing Supply Chain through Carbon Capture and LCA: A Comprehensive Framework with BWM-Fuzzy DEMATEL," Sustainability, MDPI, vol. 16(16), pages 1-19, August.
    8. Zanon-Zotin, Marianne & Baptista, Luiz Bernardo & Rochedo, Pedro R.R. & Szklo, Alexandre & Schaeffer, Roberto, 2025. "Industrial sector pathways to a well-below 2 °C world: A global integrated assessment perspective," Applied Energy, Elsevier, vol. 381(C).
    9. McLaughlin, Hope & Littlefield, Anna A. & Menefee, Maia & Kinzer, Austin & Hull, Tobias & Sovacool, Benjamin K. & Bazilian, Morgan D. & Kim, Jinsoo & Griffiths, Steven, 2023. "Carbon capture utilization and storage in review: Sociotechnical implications for a carbon reliant world," Renewable and Sustainable Energy Reviews, Elsevier, vol. 177(C).
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    11. Herman, Kyle S. & Hall, Jeremy K. & Sovacool, Benjamin K. & Iskandarova, Marfuga, 2025. "The industrial decarbonization paradigm: Carbon lock-in or path renewal in the United Kingdom?," Ecological Economics, Elsevier, vol. 235(C).
    12. Cheng, Fangwei & Luo, Hongxi & Jenkins, Jesse D. & Larson, Eric D., 2023. "The value of low- and negative-carbon fuels in the transition to net-zero emission economies: Lifecycle greenhouse gas emissions and cost assessments across multiple fuel types," Applied Energy, Elsevier, vol. 331(C).
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    14. Sandrine Mathy & P. Menanteau, 2020. "Mitigation strategies to enhance the ambition of the nationally determined contributions : an analysis of 4 European countries with the decarbonization wedges methodology," Post-Print hal-03190845, HAL.

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