Early market creation measures: Industry coalitions

Current status of implementation and existing gaps

Several governments aim to support the deployment of electric trucks through purchase incentives. These include large markets such as Canada, China, EU, Germany and India. In addition to or apart from direct subsidies, some countries offer tax credits (refer to the next row).

Examples and initiatives

In the Kingdom of the Netherlands in 2023, the government launched the AanZET subsidy (Aanschafsubsidie Zero-Emissie Trucks) of up to EUR 131 900 per new electric or hydrogen truck. A EUR 30 million budget was rapidly oversubscribed, confirming strong demand. In addition, a EUR 150 million package (2024-2026) was announced to subsidise hydrogen vehicles (trucks, vans, buses) and hydrogen refuelling stations: up to EUR 300 000 per vehicle and EUR 2 million per refuelling station.

Current status of implementation and existing gaps

Industry coalitions are useful fora for collaboration from different stakeholders in the shipping sector; they also drive innovation and investment and provide market signals and policy support to advance sustainable solutions.

Examples and initiatives

Initiatives that tackle different challenges in decarbonising shipping include Call to Action for Shipping Decarbonization, Zero Emission Maritime Buyers Alliance, Blue Sky Maritime Coalition, and Poseidon Principles.

Current status of implementation and existing gaps

Industry coalitions are useful fora for collaboration among different stakeholders; they also drive innovation and investment and provide market signals and policy support to advance sustainable solutions.

Examples and initiatives

The ICAO Global Coalition for Sustainable Aviation has 58 stakeholders and focuses on three key areas: technology, operations and infrastructure, and SAF. The coalition aims to facilitate the development and implementation of emission reduction solutions, promote initiatives, and facilitate stakeholder partnerships.

Current status of implementation and existing gaps

Private suppliers and buyers are forming alliances to scale up the demand for low-carbon steel products. Several industry-led initiatives to scale up demand for near-zero emissions products are being established. These initiatives aim to drive a positive trajectory towards net-zero emissions.

Examples and initiatives

Several initiatives, such as the First Movers Coalition, the SteelZero initiative and the Sustainable Steel Buyers Platform of the Rocky Mountain Institute enable corporations to participate in the joint purchase of low-carbon steel. Meanwhile, the Alliance for Industry Decarbonization initiative, chaired by IRENA, aims to facilitate dialogue at an industry level and increase co‑operation to help companies develop solid decarbonisation strategies and implementation plans, aligned with their countries’ net-zero and decarbonisation commitments (AFID, 2022).

Current status of implementation and existing gaps

Industry coalitions exist in different forms and are useful for several purposes. There is no global industry association for the chemical and petrochemical sector, such as those for the iron and steel industry. However, different industry-led initiatives aim to fill the gap. These initiatives include creating new market space for low carbon chemicals, knowledge transfer and fostering of policy support for the industry.

Examples and initiatives

The International Council of Chemical Associations, representing over 90% of global chemical sales, aims to reduce the sector’s energy usage by more than 40% and its greenhouse gas emissions by 70% by 2050.

The Alliance for Industry Decarbonization has adopted its decarbonisation commitment. Members of the alliance have individual reduction plans that, when combined, aim to reduce direct and indirect greenhouse gas emissions by 51%. Alliance members include chemical producers such as BASF and Technip Energies.

Current status of implementation and existing gaps

Several industry-led initiatives to scale up demand for near-zero emission products are being established. These initiatives aim to drive a positive trajectory towards net-zero emissions. Many coalition commitments remain voluntary, without enforceable offtake agreements, limiting their impact in accelerating investment. Early adopters face financial barriers, and coalitions lack dedicated funding mechanisms to de-risk private sector investments in low-carbon cement technologies.

Examples and initiatives

The GCCA represents around a quarter of global cement production and has played a key role in aligning the industry with the GCCA 2050 Cement and Concrete Industry Roadmap for Net Zero Concrete.

Regional alliances such as CEMBUREAU (Europe), FICEM (Latin America) and the Arab Union for Cement and Building Materials have emerged to align regional roadmaps with global decarbonisation targets.

The Clean Energy Ministerial CCUS Initiative and the Global CCS Institute focus on accelerating CCUS deployment in cement production (The Breakthrough Agenda Report, 2023).