Industry decarbonization this decade will mainly be through electrification
Decarbonizing industry this decade will primarily rely on electrification, according to new analysis from BloombergNEF’s Albert Cheung at the BNEF summit in Munich. However, during a roundtable on light industry, it became clear that more government and industry action is needed to accelerate progress.
Key takeaways included:
- Governments must introduce targeted policies to raise awareness of electrification’s benefits, overcome barriers, and address uncertainties around future carbon and gas prices.
- Industry needs to expand project evaluation criteria, recognizing the multiple advantages of electrification, such as efficiency and flexibility, beyond just comparing energy prices.
Examples like Finland’s lower energy taxes for industrial heat pumps and Germany’s carbon contracts for difference show that policy makers are starting to address these challenges.
Source: Sem Oxenaar, LinkedIn
