Agora Industry

Industry is responsible for approximately one-fifth of global greenhouse gas emissions. The share of emissions is even higher – approximately 40 percent – if one includes power and heat generation by industry. The subsectors steel, cement and chemicals are the largest emitters, responsible for almost two-thirds of industrial emissions. The climate-neutral transformation of industry is thus essential for reaching mid-century climate targets. Agora Industry’s mission is to support this transformation with robust, evidence-based analysis and relevant policy recommendations.

Given the long operational lifespan of production plants for basic materials – which can extend to half a century – the next major investments by industrial companies must be compatible with climate neutrality. Yet to foster sustainable investment, a mix of policy instruments is needed, including well-designed regulation; targeted tax and subsidy policy; and intelligent market incentives. To this end, Agora Industry is developing strategies and policy instruments geared to encouraging transformation as early as the mid-2020s – a crucial step on the path to a climate-neutral economy.

The industrial transformation towards climate neutrality has important implications for global supply chains. Production processes need to be altered and industry needs to be provided with clean energy and climate-neutral raw material inputs. Against this backdrop, Agora Industry is elaborating solutions for encouraging the efficient use of energy and resources along the value-creation chain on the national, European and global level. This includes working towards the development of global markets for climate-friendly products and the closing of material loops.

Agora Industry collaborates with a range of stakeholders, including companies, NGOs, researchers, policymakers and trade unions. Our diverse, interdisciplinary team has wide ranging scientific, economic and policy expertise. Agora Industry works closely with the teams within Agora Energiewende and with our partner think tank Agora Verkehrswende, enabling a holistic, cross-sectoral view of the necessary steps to climate neutrality in industry.



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