A new report released by Masdar (the host of the Abu Dhabi Sustainable Week) has called for increased financing to support decarbonisation efforts in hard-to-abate industries. These industries include cement, steel, aluminium, petrochemicals, shipping, aviation, heavy industry, and manufacturing, together accounting for almost half of global emissions. The report, Hard to Abate, Ready to Start, identifies the biggest hurdles in decarbonisation and what is needed to drive greater action in the lead-up to the 2023 United Nations Climate Change Conference (COP28) in the UAE.
While the report found that half of senior industry leaders are more confident today than a few years ago about achieving net zero in their businesses, over 50% of surveyed organisations have not yet set decarbonisation targets. The need for more reliable finance is cited as the main barrier to committing to targets, with only 30% of senior executives indicating their budgets will be able to meet decarbonisation needs.
The report highlights the importance of increased public sector support and calls upon global governments to deliver innovative incentives across funding, legislation, and taxation to support national net-zero targets.
The UAE Presidency has made it clear that access to finance and capital will be prioritised ahead of COP28, noting that governments and private sector partners require resources to commit to transformative action. In addition to financing hurdles, the report highlights the disparity in available technologies to accelerate decarbonisation, delaying energy-intensive industries in ramping up decarbonisation efforts.
Abu Dhabi Sustainable Week provided a global platform for many stakeholders, including leaders from across governments, the private sector, and civil society, to discuss and engage in bold climate action and innovations that will ensure a sustainable world.
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