Skip to main content

Lund University Publications

LUND UNIVERSITY LIBRARIES

An industrial policy framework for transforming energy and emissions intensive industries towards zero emissions

Nilsson, Lars J LU ; Bauer, Fredric LU orcid ; Åhman, Max LU ; Andersson, Fredrik N G LU ; Bataille, Chris ; de la Rue du Can, Stephane ; Ericsson, Karin LU orcid ; Hansen, Teis LU orcid ; Johansson, Bengt LU and Lechtenböhmer, Stefan LU , et al. (2021) In Climate Policy 21(8). p.1053-1065
Abstract

The target of zero emissions sets a new standard for industry and industrial policy. Industrial policy in the twenty-first century must aim to achieve zero emissions in the energy and emissions intensive industries. Sectors such as steel, cement, and chemicals have so far largely been sheltered from the effects of climate policy. A major shift is needed, from contemporary industrial policy that mainly protects industry to policy strategies that transform the industry. For this purpose, we draw on a wide range of literatures including engineering, economics, policy, governance, and innovation studies to propose a comprehensive industrial policy framework. The policy framework relies on six pillars: directionality, knowledge creation and... (More)

The target of zero emissions sets a new standard for industry and industrial policy. Industrial policy in the twenty-first century must aim to achieve zero emissions in the energy and emissions intensive industries. Sectors such as steel, cement, and chemicals have so far largely been sheltered from the effects of climate policy. A major shift is needed, from contemporary industrial policy that mainly protects industry to policy strategies that transform the industry. For this purpose, we draw on a wide range of literatures including engineering, economics, policy, governance, and innovation studies to propose a comprehensive industrial policy framework. The policy framework relies on six pillars: directionality, knowledge creation and innovation, creating and reshaping markets, building capacity for governance and change, international coherence, and sensitivity to socio-economic implications of phase-outs. Complementary solutions relying on technological, organizational, and behavioural change must be pursued in parallel and throughout whole value chains. Current policy is limited to supporting mainly some options, e.g. energy efficiency and recycling, with some regions also adopting carbon pricing, although most often exempting the energy and emissions intensive industries. An extended range of options, such as demand management, materials efficiency, and electrification, must also be pursued to reach zero emissions. New policy research and evaluation approaches are needed to support and assess progress as these industries have hitherto largely been overlooked in domestic climate policy as well as international negotiations. Key policy insights Energy and emission intensive industries can no longer be complacent about the necessity of zero greenhouse gas (GHG) emissions. Zero emissions require profound technology and organizational changes across whole material value chains, from primary production to reduced demand, recycling and end-of-life of metals, cement, plastics, and other materials. New climate and industrial policies are necessary to transform basic materials industries, which are so far relatively sheltered from climate mitigation. It is important to complement technology R&D with the reshaping of markets and strengthened governance capacities in this emerging policy domain. Industrial transformation can be expected to take centre stage in future international climate policy and negotiations.

(Less)
Please use this url to cite or link to this publication:
author
; ; ; ; ; ; ; ; and , et al. (More)
; ; ; ; ; ; ; ; ; ; and (Less)
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
climate policy, decarbonization, Industrial policy, industry
in
Climate Policy
volume
21
issue
8
pages
1053 - 1065
publisher
Taylor & Francis
external identifiers
  • scopus:85111831838
ISSN
1469-3062
DOI
10.1080/14693062.2021.1957665
project
REINVENT Realising Innovation in Transitions for Decarbonisation
Pathways for HDR steel making (HYBRIT RP1 -WP6)
language
English
LU publication?
yes
additional info
Publisher Copyright: © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. Copyright: Copyright 2021 Elsevier B.V., All rights reserved.
id
4d2a179e-c7d9-43f7-b246-ac422ab56d87
date added to LUP
2021-08-15 14:25:51
date last changed
2024-01-20 10:18:18
@article{4d2a179e-c7d9-43f7-b246-ac422ab56d87,
  abstract     = {{<p>The target of zero emissions sets a new standard for industry and industrial policy. Industrial policy in the twenty-first century must aim to achieve zero emissions in the energy and emissions intensive industries. Sectors such as steel, cement, and chemicals have so far largely been sheltered from the effects of climate policy. A major shift is needed, from contemporary industrial policy that mainly protects industry to policy strategies that transform the industry. For this purpose, we draw on a wide range of literatures including engineering, economics, policy, governance, and innovation studies to propose a comprehensive industrial policy framework. The policy framework relies on six pillars: directionality, knowledge creation and innovation, creating and reshaping markets, building capacity for governance and change, international coherence, and sensitivity to socio-economic implications of phase-outs. Complementary solutions relying on technological, organizational, and behavioural change must be pursued in parallel and throughout whole value chains. Current policy is limited to supporting mainly some options, e.g. energy efficiency and recycling, with some regions also adopting carbon pricing, although most often exempting the energy and emissions intensive industries. An extended range of options, such as demand management, materials efficiency, and electrification, must also be pursued to reach zero emissions. New policy research and evaluation approaches are needed to support and assess progress as these industries have hitherto largely been overlooked in domestic climate policy as well as international negotiations. Key policy insights Energy and emission intensive industries can no longer be complacent about the necessity of zero greenhouse gas (GHG) emissions. Zero emissions require profound technology and organizational changes across whole material value chains, from primary production to reduced demand, recycling and end-of-life of metals, cement, plastics, and other materials. New climate and industrial policies are necessary to transform basic materials industries, which are so far relatively sheltered from climate mitigation. It is important to complement technology R&amp;D with the reshaping of markets and strengthened governance capacities in this emerging policy domain. Industrial transformation can be expected to take centre stage in future international climate policy and negotiations.</p>}},
  author       = {{Nilsson, Lars J and Bauer, Fredric and Åhman, Max and Andersson, Fredrik N G and Bataille, Chris and de la Rue du Can, Stephane and Ericsson, Karin and Hansen, Teis and Johansson, Bengt and Lechtenböhmer, Stefan and van Sluisveld, Mariësse and Vogl, Valentin}},
  issn         = {{1469-3062}},
  keywords     = {{climate policy; decarbonization; Industrial policy; industry}},
  language     = {{eng}},
  number       = {{8}},
  pages        = {{1053--1065}},
  publisher    = {{Taylor & Francis}},
  series       = {{Climate Policy}},
  title        = {{An industrial policy framework for transforming energy and emissions intensive industries towards zero emissions}},
  url          = {{http://dx.doi.org/10.1080/14693062.2021.1957665}},
  doi          = {{10.1080/14693062.2021.1957665}},
  volume       = {{21}},
  year         = {{2021}},
}