The industrial sector is the second largest emitter after power generation, accounting for more than 30 per cent of global emissions and almost 40 per cent of global energy consumption. The target of limiting global temperature rise to 1.5° Celsius remains out of reach without substantial industrial sector efforts to reduce emissions.
Given the scale of today’s net-zero challenges, a single organisation or industry sector does not have the solutions to tackle decarbonisation alone. Industrial decarbonisation requires cross-sector collaboration to strengthen demand for low-carbon solutions throughout the entire value chain.
On 1 September, 2022, IRENA, co-founding partner Siemens Energy, and companies across all industry sectors, launched the Alliance for Industry Decarbonization at the G20 Investment Forum on Energy Transition in Bali, Indonesia. Established by adopting the “Bali Declaration”, the Alliance aims to support efforts to decarbonise industrial value chains, advance industry adoption of renewables-based solutions, and aid in the accomplishment of country-specific net-zero goals.
The group held its first meeting during COP27’s Decarbonisation Day in Sharm El Sheikh, Egypt on 11 November, with the participation of top executives from the 28 member firms and knowledge partners.
The CEO Roundtable meeting, organised by IRENA and co-chaired by Tata Steel and Siemens Energy, focused on six pillars and enablers: renewables, green hydrogen, bioenergy with Carbon Capture, Utilisation and Storage (CCUS), heat process optimisation, human capital, and finance. Members agreed during the discussions that partnerships built on peer-to-peer communication and collaboration are essential for industry stakeholders to handle the issues of sustainable energy successfully and efficiently.
“Climate action needs industry leaders. This Alliance stands for the growing commitment of global industry to act on decarbonisation. We are delighted today to welcome eight new members to our Alliance, united in their determination to speed up the energy transition,” said IRENA Director-General Francesco La Camera.
The Alliance is inviting potential new members to join and support their shared goal of accelerating the energy transition. Members may include both public and private businesses and stakeholders engaged in energy-intensive industries that are prepared to immediately decarbonise their operations.
“There are no reasons or excuses to wait for action. All technologies needed are available and the recent Intergovernmental Panel on Climate Change report has made it clear that without major changes global warming will increase more than 3.2° C. There is no alternative to the energy transition – we need to act together for just, ambitious implementation now,” said Christian Bruch, President and CEO Siemens Energy.