The best G20 markets for decarbonizing industrial low- to medium-temperature heat

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13 September, 2021


WBCSD insights



Rutger van der Zanden

The top G20 markets for industrials seeking to decarbonize their low-to medium- temperature heat are China, France, Italy, Germany, South Korea and the U.K., according to a new report by BloombergNEF and the World Business Council for Sustainable Development

The transition to low-carbon energy is already well underway within the electricity sector, yet one key aspect of the transition remains overlooked. There has been little-to-no progress made to decarbonize industrial heat – an essential part of industrial processes. For example, it is the energy input that triggers the chemical reactions to make medicine and household cleaning products. It is needed to transform metal ore into steel and, ultimately, consumer goods like cars. It is used to pasteurize milk, brew beer and dry paper.

Industrial heat use accounted for a third of global final energy demand in 2018, producing carbon dioxide emissions roughly equal in size to the total emissions from transport. Coal, oil, and natural gas have dominated the fuel supply for heating to date.

Source: IEA, BloombergNEF. 

Source: BloombergNEF, WBCSD. Note: TWh = terawatt-hours.