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IEA’s Policy Toolbox Offers Roadmap for Decarbonizing Heavy Industries

Heavy industries like steel and cement are responsible for nearly 20% of global CO2 emissions, making their decarbonization a key challenge in the journey to net-zero. Recognizing this, the International Energy Agency (IEA) has launched a detailed Policy Toolbox for Industrial Decarbonisation aimed at guiding governments and stakeholders in designing effective emission-reduction strategies for these sectors.

The IEA categorizes policy measures into three focus areas:

1. Framework Fundamentals – Establishing strong foundations through long-term plans, carbon pricing mechanisms such as emissions trading systems, and mobilization of public-private finance.
2. Targeted Actions – Supporting retrofits of high-emission facilities, stimulating markets for low-carbon materials, and accelerating R&D for transformative clean technologies.
3. Enabling Conditions – Ensuring success through international collaboration, infrastructure development (e.g., for green hydrogen or CCS), and robust monitoring frameworks.

This approach acknowledges the complexity of industrial decarbonization, especially due to the energy-intensive nature and longevity of existing industrial assets. It emphasizes the need for customized national strategies while advocating global cooperation to prevent carbon leakage and enhance shared innovation.

The toolbox serves as a vital resource for policymakers and industry leaders working at the intersection of sustainability and economic development.