More than thirty percent of the world’s emissions come from the industrial sector, which also accounts for almost forty percent of the world’s total energy consumption. This makes the industrial sector the second largest emitter after the power generation sector. Without significant efforts from the industrial sector to reduce emissions, the goal of limiting the increase in global temperature to 1.5 degrees Celsius will not be attainable. The magnitude of today’s net-zero challenges makes it impossible for a single organization or industry sector to possess all of the solutions necessary to tackle decarbonization on their own. The decarbonization of industry requires cooperation between different economic sectors in order to increase the demand for low-carbon solutions throughout the entire value chain.
At the G20 Investment Forum on Energy Transition, which took place on September 1, 2022 in Bali, Indonesia, IRENA, its co-founding partner Siemens Energy, and companies representing all industry sectors announced the formation of the Alliance for Industry Decarbonization. The Alliance was established through the adoption of the “Bali Declaration,” and its goals are to support efforts to decarbonize industrial value chains, advance industry adoption of solutions based on renewable energy, and assist in the accomplishment of country-specific net-zero emission goals. On November 11, in Sharm El Sheikh, Egypt, the organization held its first meeting in conjunction with the Decarbonization Day of COP27. Knowledge partners and top executives from the 28 companies that are members of the organization were in attendance.
The CEO Roundtable meeting was organized by IRENA and co-chaired by Tata Steel and Siemens Energy. The meeting’s focus was on six pillars and enablers, including renewable energy, green hydrogen, bioenergy with Carbon Capture, Utilisation, and Storage (CCUS), heat process optimization, human capital, and finance. During the course of the discussions, members reached a consensus that it is necessary for industry stakeholders to form partnerships that are based on communication and collaboration between peers, as this is the only way to successfully and effectively manage the challenges associated with sustainable energy. “Industry leaders are required for climate action. This Alliance represents the growing commitment of businesses around the world to take action regarding decarbonization. Francesco La Camera, the Director General of IRENA, expressed his excitement about the organization’s recent acceptance of eight new members, all of whom share the common goal of hastening the transition to a more sustainable energy source.
The Alliance is reaching out to organizations and individuals who may be interested in becoming members and supporting their mission to expedite the energy transition. Businesses, both public and private, as well as other stakeholders, active in energy-intensive industries that are ready to immediately decarbonize their operations could become members of the organization. There is neither a reason nor an acceptable excuse to delay taking action. All of the necessary technologies are currently available, and the most recent report from the Intergovernmental Panel on Climate Change has made it abundantly clear that if significant changes are not made, global warming will increase by more than 3.2 degrees Celsius. According to Christian Bruch, President and CEO of Siemens Energy, “there is no alternative to the energy transition—we need to act together for just, ambitious implementation now.”