Financing Heavy Industry’s Transition: Capital for Hard-to-Abate Sectors

Heavy industries such as cement, steel and utilities underpin the global economy but remain among the most carbon-tensive and hardest sectors to decarbonise. Transitioning these industries will require significant levels of investment in low-carbon solutions, many of remain immature or high risk.

Mobilsing capital at scale requires balancing investor risk, strengthening policy signals and creating market demand for low-carbon industrial solutions.

• How can governments, financiers and industry work together to finance credible transition pathways and accelerate deployment across hard-to-abate sectors?
• Should investors accept short-term portfolio emission increases in exchange for credible long-term transition strategies?
• What role can policy incentives, blended finance and corporate offtake agreements play in de-risking investment in emerging industrial technologies?