Some $250 billion of financing has been allocated to produce low-carbon materials in heavy emitting sectors such as chemicals, fuels and metals, but future low-carbon materials projects will need more than five times the level of current funding, a report said on Thursday.
Newly industrialized countries such as Indonesia and Morocco have already secured a fifth of the $250 billion investment in clean industrial plants so far, the report by the Mission Possible Partnership said.
Some 69 projects are in operation using clean energy to produce materials, while 65 others have secured financing, the report said.
The report also tracked $1.6 trillion of projects announced but not yet financed, with newly industrial “sunbelt” countries accounting for 59% of the investment pipeline, versus 18% for the United States, 10% for the European Union, and 6% for China.
“The new generation of energy-intensive industrial plants will go to where they can access abundant, reliable, cheap, clean electricity to produce materials, chemicals and fuels,” said Faustine Delasalle, CEO of the organization.
The MPP is a US-based non-profit group seeking to boost the growth of low-emission industry and supported by the Bezos Earth Fund and the World Economic Forum.
“The new industrial sunbelt of the world is poised to overtake Western nations in sectors like ammonia, causing major ripples throughout the global economy,” said Delasalle.
The MPP is supported by the Industrial Transition Accelerator, set up at the COP28 summit in Dubai to stimulate needed investment in green projects. Delasalle is also executive director of the ITA.
The fastest-growing clean industry sectors are green ammonia, which is used for fertilizer, and sustainable aviation fuels, the report said.
In the metals sector, steel has 33 near-zero emission primary steel plant projects, but needs 90 projects to be financed by 2030 to meet net-zero goals, while aluminum has 44 projects but needs 165 projects, the report said.
(By Eric Onstad; Editing by Jane Merriman)
