Myanmar’s industrial sector has contributed an increasing share to GDP as the country has seen a structural change away from agriculture. As this has occurred, industry’s share of final energy consumption has also increased. In 2019, the sector consumed 160 PJ of energy of which 59% came from oil and 17% from electricity. Coal, gas, and biomass made up the remaining 8%, 7%, and 9% respectively. The increased energy consumption seen since 2010 has been primarily due to greater use of oil, which increased 10-fold between 2010 and 2019. As a result, over this time, emissions of industrial energy demand have risen from 2.3 to 8.9 MtCO₂.
As part of its NDC, Myanmar has put forth the goal of a 6.63% reduction, relative to 2012, in industrial energy consumption. This target stands in sharp contrast to the increase observed since 2010. While energy efficiency is an important aspect of developing a sustainable industrial sector, electrification through a decarbonised, renewable power system is also of critical importance. In the case of Myanmar, developing a sustainable industrial base is also contingent on diversifying the economy away from its current reliance on fossil fuel rents.
The 1.5°C pathways see an increased use of electricity in the industrial sector, reaching around a third of final consumption by 2050. Biomass and hydrogen (only in one scenario) use would also increase so that, together with electricity, these would account for up to three-fifths of energy consumption by 2050. Emissions of energy demands would reach net zero around 2050. Again, this assumes that the power sector is decarbonised as described above.