Enablers to decarbonize the hard-to-abate sectors

While the energy transition will involve the decarbonisation of the power, transport, and heating and cooling sectors, there are elements of the energy system that are more complex and costlier to decarbonise. This is due to technological limitations, economic and geopolitical concerns, and these sectors’ extensive demand for energy. These sectors are referred to as “hard to abate”. These are heavy-duty trucks, shipping, aviation, iron and steel, chemicals and petrochemicals, and cement. These six sectors account for roughly a quarter of the world’s energy consumption and are responsible for around a fifth of total global carbon dioxide (CO₂) emissions.

Global energy consumption (top left), CO₂ emissions (top right) and activity metrics (bottom) for select hard-to-abate sectors, 2023

IRENA’s perspective on achieving net-zero CO₂ emissions recognises that while each sector is different and will require different approaches, most emission reductions will have to be achieved through a combination of five main pathways, which rely primarily on renewable energy and energy efficiency (IRENA, 2020).

Main technology pathways for the decarbonisation of hard-to-abate sectors

The window of opportunity for meaningful action to counter the global climate threat is closing fast. Options that deliver only partial emission reductions – such as replacing oil and coal with natural gas or adopting blue fuels, which rely on fossil feedstocks – are not sufficient. Decision makers should avoid delaying their decarbonisation objectives and prioritise solutions that are consistent with net-zero emissions. Most of these solutions rely on renewable energy.

To fully transition the hard-to-abate sectors in the next three decades, countries will need to deploy innovative solutions. Technology development is necessary, but insufficient on its own, to advance the decarbonization of these sectors. Systemic innovation – innovation beyond technology – is needed, including holistic enablers in the areas of policy and regulation, physical and digital infrastructure, new market designs, business models, finance, supply chains, skills and capacity building, stakeholder engagement, and international collaboration.

Key enabling dimensions of the energy transition in the hard-to-abate sectors

To translate these dimensions into actionable insights, the mapping organises the necessary actions and initiatives into “enablers”. This taxonomy serves as a structured guide, categorising and clarifying the diverse approaches required to fulfil sector-specific needs effectively. While the first four groups of enablers detail the specific actions, instruments, mechanisms or strategies required to facilitate sector transitions, the last one – International Collaboration – is cross-cutting and highlights opportunities for countries and regions to co-operate on these enabling activities.

Mapping of enablers, within the enabling dimensions, to decarbonise hard-to-abate sectors

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