What is the European Union's pathway to limit global warming to 1.5°C?

Industry

The emissions from the EU manufacturing sector fell by 37% between 1990 and 2017. Noticeably, process emissions, which in 1990 contributed a third of total GHG emissions, decreased much slower (–22%) than emissions from energy consumption in the industry sector (–45%). The 1.5°C compatible scenarios show a wide range of decarbonisation pathways for the sector. According to the scenarios with high reliance on carbon dioxide removal (CDR), process emissions will decrease much faster than emissions from energy consumption – by 78% and 19% respectively. Most of the remaining scenarios, e.g. high energy demand, low CDR, see slightly faster reduction in emissions from energy consumption (around 30%) than process emissions (19%). Almost all scenarios analysed in this project show a significant reduction in total emissions from the industry sector in the subsequent decades, with close to full decarbonisation of energy demand reached between 2040 and 2048. The analysed 1.5°C pathways show an almost doubling of electrification rate of EU’s industry sector, from 33% in 2019 to at least 63% in 2050. In May 2021, the EU published an updated industrial strategy however not providing concrete measures which would lead to higher electrification but rather ‘designing’ transition pathways for the sector.

the European Union's energy mix in the industry sector

petajoule per year

Scaling

Fuel share provided refers to energy demand only from the industry sector.

In the EU, the industry sector is covered by the Emissions Trading System (EU ETS), however, the sectors that could potentially be affected by carbon leakage receive a portion of their emissions allowances for free. The implementation of a Carbon Border Adjustment Mechanism, as recently suggested by the European Commission, if implemented, would result in a steady removal of free allowances. When combined with the funding for deployment of low carbon technologies in the framework of the Innovation Fund, removing the free allowances may result in a significant reduction in emissions from this sector in this decade.

While technologies to almost completely decarbonise some of the most carbon intensive sectors exist, such as steel production using green hydrogen, the speed of their deployment is uncertain, despite some positive developments.1

the European Union's industry sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

the European Union's GHG emissions from industrial processes

MtCO₂e/yr

1.5°C compatible industry sector benchmarks

Direct CO₂ emissions, shares of electricity, and combined shares of electricity, hydrogen and biomass from illustrative 1.5°C pathways for the European Union

Indicator
2019
2030
2040
2050
Decarbonised industry sector by
Direct CO₂ emissions
MtCO₂/yr
500
215 to 240
65 to 92
17 to 20
2040 to 2048
Relative to reference year in %
-57 to -52%
-87 to -82%
-97 to -96%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
33
40 to 42
54 to 58
63 to 64
Share of electricity, hydrogren and biomass
per cent
43
50 to 59
59 to 81
69 to 81

Fuel share provided refers to energy demand only from the industry sector. BECCS are the only Carbon Dioxide Removal (CDR) technologies considered in these benchmarks.
Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). All values are rounded. Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

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