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A European industrial development policy for prosperity and zero emissions

Nilsson, Lars J. LU orcid ; Åhman, Max LU orcid ; Bauer, Fredric LU orcid ; Ericsson, Karin LU orcid ; Johansson, Bengt LU ; van Sluisveld, Mariësse LU orcid ; Vogl, Valentin LU orcid ; Andersson, Fredrik N.G. LU orcid ; Hansen, Teis LU orcid and Bataille, Chris , et al. (2020) 2020 eceee Industrial Summer Study on Industrial Efficiency: Decarbonise Industry! In Eceee Industrial Summer Study Proceedings 2020-September. p.457-466
Abstract
The objective of this paper is to outline and discuss the key elements of an EU industrial development policy consistent with the Paris Agreement. We also assess the current EU Industrial Strategy proposal against these elements. The “well below 2 °C” target sets a clear limit for future global greenhouse gas emissions and thus strict boundaries for the development of future material demand, industrial processes and the sourcing of feedstock; industry must evolve to zero emissions or pay for expensive negative emissions elsewhere. An industrial policy for transformation to net-zero emissions must include attention to directed technological and economic structural change, the demand for emissions intensive products and services, energy and... (More)
The objective of this paper is to outline and discuss the key elements of an EU industrial development policy consistent with the Paris Agreement. We also assess the current EU Industrial Strategy proposal against these elements. The “well below 2 °C” target sets a clear limit for future global greenhouse gas emissions and thus strict boundaries for the development of future material demand, industrial processes and the sourcing of feedstock; industry must evolve to zero emissions or pay for expensive negative emissions elsewhere. An industrial policy for transformation to net-zero emissions must include attention to directed technological and economic structural change, the demand for emissions intensive products and services, energy and material efficiency, circular economy, electrification and other net-zero fuel switching, and carbon capture and use or storage (CCUS). It may also entail geographical relocation of key basic materials industries to regions endowed with renewable energy. In this paper we review recent trends in green industrial policy. We find that it has generally focused on promoting new green technologies (e.g., PVs, batteries, fuel cells and biorefineries) rather than on decarbonizing the emissions intensive basic materials industries, or strategies for handling the phase-out or repurposing of sunset industries (e.g., replacing fossil fuel feedstocks for chemicals). Based on knowledge about industry and potential mitigation options, and insights from economics, governance and innovation studies, we propose a framework for the purpose of developing and evaluating industrial policy for net-zero emissions. This framework recognizes the need for: directionality; innovation; creating lead markets for green materials and reshaping existing markets; building capacity for governance and change; coherence with the international climate policy regime; and finally the need for a just transition. We find the announced EU Industrial Strategy to be strong on most elements, but weak on transition governance approaches, the need for capacity building, and creating lead markets. (Less)
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organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
decarbonisation, governance, industrial policy, energy intensive industry
host publication
ECEEE 2020 Industrial Summer Study Proceedings : Decarbonise Industry! 2020 - Proceedings - Decarbonise Industry! 2020 - Proceedings
series title
Eceee Industrial Summer Study Proceedings
volume
2020-September
article number
6-082-20
pages
10 pages
publisher
European Council for an Energy Efficient Economy (ECEEE)
conference name
2020 eceee Industrial Summer Study on Industrial Efficiency: Decarbonise Industry!
conference location
Virtual, Online, Sweden
conference dates
2020-09-14 - 2020-09-17
external identifiers
  • scopus:85102856520
ISSN
2001-7979
2001-7987
ISBN
9789198387865
project
Green transition and co-evolution of industry and the energy system
REINVENT Realising Innovation in Transitions for Decarbonisation
language
English
LU publication?
yes
additional info
Publisher Copyright: © 2020 European Council for an Energy Efficient Economy. All rights reserved.
id
7e1939d6-96c2-4c8a-bdea-3be7a1eb532a
alternative location
https://www.eceee.org/library/conference_proceedings/eceee_Industrial_Summer_Study/2020/6-deep-decarbonisation-of-industry/a-european-industrial-development-policy-for-prosperity-and-zero-emissions/
https://www.eceee.org/library/conference_proceedings/eceee_Industrial_Summer_Study/2020/6-deep-decarbonisation-of-industry/a-european-industrial-development-policy-for-prosperity-and-zero-emissions/
date added to LUP
2020-07-03 10:10:58
date last changed
2025-12-17 07:15:46
@inproceedings{7e1939d6-96c2-4c8a-bdea-3be7a1eb532a,
  abstract     = {{The objective of this paper is to outline and discuss the key elements of an EU industrial development policy consistent with the Paris Agreement. We also assess the current EU Industrial Strategy proposal against these elements. The “well below 2 °C” target sets a clear limit for future global greenhouse gas emissions and thus strict boundaries for the development of future material demand, industrial processes and the sourcing of feedstock; industry must evolve to zero emissions or pay for expensive negative emissions elsewhere. An industrial policy for transformation to net-zero emissions must include attention to directed technological and economic structural change, the demand for emissions intensive products and services, energy and material efficiency, circular economy, electrification and other net-zero fuel switching, and carbon capture and use or storage (CCUS). It may also entail geographical relocation of key basic materials industries to regions endowed with renewable energy. In this paper we review recent trends in green industrial policy. We find that it has generally focused on promoting new green technologies (e.g., PVs, batteries, fuel cells and biorefineries) rather than on decarbonizing the emissions intensive basic materials industries, or strategies for handling the phase-out or repurposing of sunset industries (e.g., replacing fossil fuel feedstocks for chemicals). Based on knowledge about industry and potential mitigation options, and insights from economics, governance and innovation studies, we propose a framework for the purpose of developing and evaluating industrial policy for net-zero emissions. This framework recognizes the need for: directionality; innovation; creating lead markets for green materials and reshaping existing markets; building capacity for governance and change; coherence with the international climate policy regime; and finally the need for a just transition. We find the announced EU Industrial Strategy to be strong on most elements, but weak on transition governance approaches, the need for capacity building, and creating lead markets.}},
  author       = {{Nilsson, Lars J. and Åhman, Max and Bauer, Fredric and Ericsson, Karin and Johansson, Bengt and van Sluisveld, Mariësse and Vogl, Valentin and Andersson, Fredrik N.G. and Hansen, Teis and Bataille, Chris and Lechtenböhmer, Stefan and de la Rue du Can, Stephane and Schiro, Danielle}},
  booktitle    = {{ECEEE 2020 Industrial Summer Study Proceedings : Decarbonise Industry! 2020 - Proceedings}},
  isbn         = {{9789198387865}},
  issn         = {{2001-7979}},
  keywords     = {{decarbonisation; governance; industrial policy; energy intensive industry}},
  language     = {{eng}},
  pages        = {{457--466}},
  publisher    = {{European Council for an Energy Efficient Economy (ECEEE)}},
  series       = {{Eceee Industrial Summer Study Proceedings}},
  title        = {{A European industrial development policy for prosperity and zero emissions}},
  url          = {{https://lup.lub.lu.se/search/files/81347518/6_082_20_Nilsson_prelim.pdf}},
  volume       = {{2020-September}},
  year         = {{2020}},
}