In a decade marked by economic expansion and surging demand for goods and transport, we face a paradoxical challenge: How can we address climate change while fostering economic growth and resilience? This challenge is particularly difficult for companies operating in the steel, cement, aluminium, ammonia, energy and transport sectors. These companies are critical to satisfying future demand and enabling economic growth. Yet, they contribute over 40% of the world’s greenhouse gas (GHG) emissions. Their emissions are difficult, but critical to abate.

It is encouraging that many businesses have made significant progress towards their 2050 net-zero goals. Yet most of that momentum is seen in companies with easily abatable emissions, substantial financial resources to invest in decarbonization, public accountability or those operating in advanced economies with supportive policies. A gap remains between those abatement leaders and companies experiencing greater emission intensity, operating in emerging economies or lacking the financial means to embark on a substantial decarbonization journey. The challenges facing these companies and sectors are pernicious – and exacerbated by the fact that their technologies, infrastructures and policy frameworks often fall short.

Through this effort, the World Economic Forum, with support from Accenture, intends to accelerate decarbonization of emission-intensive production, energy and transport industries. Our aim is to ensure that no company is left behind in the transition to a more sustainable and carbon-neutral future, for which timely and consistent monitoring of industrial decarbonization is essential. This practice is crucial to helping companies and industries maintain a steady pace of progress. Still, it first requires a consensus on definitions and thresholds of low-emission products and services from these sectors. Without that, it will be difficult to achieve the transparency needed to build confidence and reinforce the momentum to net zero.

The Net-Zero Industry Tracker focuses on production, transport and energy sectors. Decarbonizing these industries’ processes and value chains will require more than technological advancements. The effort must encompass business operations, regulations and wider cross-sectoral collaboration. While some countries are issuing supportive policies and financial commitments, the reality is that these sectors are lagging.

We believe a course correction is still possible. It will require industrial leaders to champion innovative business models and shared infrastructures, such as hubs and clusters, that provide greater access to development opportunities and promote equitable sector growth. A successful transition will also require significant financial commitments; we estimate roughly $13.5 trillion will be needed to build the clean power and electrification, hydrogen and carbon capture utilization and storage (CCUS) solutions and infrastructure to meet demand. Bi-directional partnerships and cross-industry collaboration will also be important in stimulating demand for (and adoption of) low-emission products and clean power-based technologies, developing industrial applications and pursuing new market opportunities. Sector-specific policies and regulations are essential. So are cross-regional policies that can help bridge disparities among regions.

Industrial decarbonization remains one of the most daunting challenges of the energy transition. Every country and industry must determine how to incentivize domestic benefits and create quality jobs while ensuring the principles of free trade and open markets. The key findings from the 2023 Global Stocktake of the Paris Agreement confirm that reaching global net zero by 2050 requires much more ambitious actions and far greater support than we have seen. The reality is that the choices and actions taken in this decade will significantly shape the trajectory of our collective futures.