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

Heavy industries such as steel, cement, and utilities are essential to the global economy but remain among the most carbon-intensive and hardest to decarbonise. Transitioning these sectors requires massive investment in technologies like low-carbon hydrogen, carbon capture, and industrial electrification – many of which are still early-stage or uneconomic. Success will depend on mobilising capital, balancing investor risk, and aligning policy frameworks to unlock large-scale deployment.

• How can policymakers and financiers unlock capital at scale for hard-to-abate sectors?

• Should investors tolerate near-term portfolio emission rises in exchange for credible long-term transition pathways?

• What role can corporate offtake agreements and policy incentives play in de-risking these investments?