EU's Clean Industrial Deal: Holistic Approach to Decarbonisation
Key Ideas
- The industrial sector contributes significantly to global GHG emissions, necessitating a holistic approach to decarbonisation beyond renewables and electrification.
- The Clean Industrial Deal aims to create a market for decarbonised products like cement, fertilisers, steel, and aluminium, necessitating legislative reforms.
- Focus on developing commercial carbon capture and storage sites across Europe, with upcoming legislative frameworks crucial for investors and lenders.
- Political will within the EU for CCS is growing, recognizing its essential role in achieving emissions reduction targets and industrial carbon management.
The European Commission is urged to adopt a more holistic approach to decarbonisation beyond renewables and electrification, acknowledging the industrial sector's significant contribution to global greenhouse gas (GHG) emissions. The Clean Industrial Deal aims to address the 20-25% direct emissions from the industrial sector and the additional 20-25% from energy emissions associated with it. Specific adjustments under consideration include creating a market for decarbonised products like cement, fertilisers, steel, and aluminium, along with reforming EU procurement rules. Efforts are underway to identify optimal locations in Europe for commercial carbon capture and storage (CCS) sites, with plans for crucial legislative frameworks within the next 18 months. The political will within the EU on CCS is increasing due to its integral role in achieving net GHG CO2 reduction targets by 2040. The article also highlights the potential of clean hydrogen in decarbonising hard-to-abate industrial processes in the long term, emphasizing the importance of stringent criteria for carbon storage to minimize emissions. The focus remains on ensuring that hydrogen production aligns with high environmental standards both within Europe and globally.