Industrial Decarbonization
Cutting greenhouse gas emissions from industrial sites — through efficiency, electrification, hydrogen, carbon capture and renewables. EU ETS / CBAM / CSRD regulatory framework, scopes 1/2/3, technical levers and reporting.
Scopes 1, 2, 3 — emissions mapping
The GHG Protocol divides emissions into three successive scopes. Control always starts from this accounting — you cannot reduce what you do not measure.
Direct emissions
On-site combustion: boilers, furnaces, burners, site vehicles. Fluorinated gas leaks (HFC, SF₆). Sources directly controlled by the operator.
Indirect energy emissions
Purchased electricity, heat, steam and cooling. Depends on the supplier's electricity mix. Major lever: renewable PPAs, guarantees of origin.
Other indirect emissions
Upstream (raw materials, purchases, upstream transport, business travel) and downstream (use and end-of-life of sold products, downstream transport). Often 80–95% of total for manufacturing.
Decarbonization levers
No single lever is enough. The net-zero pathway typically combines 4–6 levers, in an order driven by marginal abatement cost (€/tCO₂ avoided).
Energy efficiency
Reduction : 5–30 %First lever — always the cheapest. ISO 50001, IE3/IE4 motors, variable speed drives, heat recovery, insulation. Typical 10–20% gain on energy bill.
Electrification
Reduction : 30–80 %Replace combustion with low-carbon electricity. Industrial heat pumps (up to 150–200 °C), electric boilers, induction furnaces, electrolysis, equipment electrification.
Hydrogen
Reduction : 50–100 %Green H₂ (electrolysis + renewable) for high-temperature uses that cannot be electrified directly: steel (DRI), ammonia, methanol, refining, glass. Decarbonization possible but OPEX 2–4× higher.
CCUS
Reduction : 50–95 %Carbon Capture, Utilization & Storage: flue gas capture (post-combustion, oxy-fuel, pre-combustion), CO₂ transport, geological sequestration or valorization (e-fuels, concrete carbonation). Essential for cement, refining, steel.
Biomass / biogas
Reduction : 60–100 %Replace fossil with biomass (pellets, chips, agri waste), biogas (effluent methanization) or biomethane injected into the gas grid. Limited availability — reserve for hardest-to-electrify uses.
Renewable PPAs
Reduction : 100 % scope 2Long-term Power Purchase Agreement (10–20 yr) with a solar or wind producer. Locks an electricity price decoupled from the market AND assigns guarantees of origin. Eliminates scope 2 electricity emissions almost entirely.
Regulatory & reporting framework
EU ETS
Emissions Trading System — CO₂ market. Any industrial installation above 20 MW thermal must buy allowances per tonne emitted. Current price ~€80/tCO₂. Phase 4 (2021–2030) tightens the reduction pace.
CBAM
Carbon Border Adjustment Mechanism. Reporting phase since Oct 2023, payment from 2026. Targets steel, aluminium, cement, fertilizers, hydrogen, electricity. Forces importers to pay the ETS differential.
CSRD / ESRS
Corporate Sustainability Reporting Directive — mandatory sustainability reporting for ~50,000 EU companies from 2024 (FY 2024 published 2025). Includes scope 1/2/3 emissions per European Sustainability Reporting Standards (ESRS).
SBTi
Science Based Targets initiative — voluntary but de-facto standard to validate that a corporate trajectory is +1.5 °C compatible. SDA methodology. 5,000+ committed companies.
Standards and frameworks
- ISO 14064-1 — GHG quantification and reporting (organization)
- ISO 14064-2 — Quantification of emission reduction projects
- ISO 14067 — Product carbon footprint
- ISO 14001 — Environmental management system
- ISO 50001 — Energy management system
- GHG Protocol — International framework (scopes 1/2/3)
Tools
Carbon footprint calculators, marginal abatement cost, PPA sizing, electrification ROI — under development.