Reducing Emissions from Industrial Production

Industrial production is a major and rapidly growing source of greenhouse gas (GHG) emissions across the globe. Energy intensive industrial activities such as iron and steel production and oil refining combust large amounts of fossil fuels. In addition, industrial and chemical processes, like those used in cement manufacturing, also emit GHGs.

The combination of energy-intensive production and rising global demand for commodities has made industry one of the largest sources of GHG emissions. The International Energy Agency (IEA) estimates that manufacturing industries accounted for almost one-third of energy consumption and 36 percent of CO2 emissions globally in 2004. Solving the climate change problem will require substantial and sustained efforts to reduce emissions in this sector.

Industrial emissions can be reduced through upgrades to existing production facilities, installation of new advanced technologies that combust fuel and utilize electricity more efficiently, increased use of biomass and other renewable fuels, and changes to end-use products (for example, blended cement). In sectors such as cement and pulp and paper production, a range of zero- or low-cost mitigation options are available, such as cogeneration for electricity and heat and steam production. Other sectors may require higher cost measures.

CCAP has identified significant industrial mitigation potentials in key countries that would result in net savings, such as restructuring the cement sector in China to reduce energy intensity and GHG emissions. Similar opportunities have been identified in other countries and sectors. Development of effective domestic and international programs to encourage such actions can therefore make a major contribution to reducing GHG emissions globally.