Managing Emissions

Delivering emissions reductions in energy-intensive sectors such as heavy industry is one of the energy transition’s biggest challenges. Decarbonization technologies such as carbon capture and storage, direct air capture, methane reduction, materials recycling and others, as well as new industrial processes, are making progress, but the scale and speed of deployment remains modest. Early projects are starting to yield lessons that will be vital for technological advancement, reducing costs and scaling up these technologies. Strategies that align industry, policymakers and capital providers can help accelerate and expand decarbonization technologies. But there is the evident risk that some decarbonization policies can impose heavy costs that make companies uncompetitive and lead to shrinkage and deindustrialization.