Global Initiative Urges Accelerated Investment In Green Industry

A global initiative, the Industrial Transition Accelerator (ITA), is calling for urgent action to stimulate demand for low-carbon products, which is currently the main obstacle to unlocking billions in investment for large-scale green industrial projects. The ITA, launched at COP28 in collaboration with the UAE COP28 Presidency, UN Climate Change, and Bloomberg Philanthropies, is engaging with industries, investors, and governments to accelerate investment by 2026.

The ITA has identified 473 industrial projects across six of the world’s highest-emitting industries—aluminium, cement, chemicals, steel, aviation, and shipping—that need immediate investment to produce green commodities by 2030. These projects are crucial for reducing global carbon emissions, with heavy industry currently responsible for around 30 percent of global CO2 emissions. However, without firm purchase agreements and supportive policies, these projects remain unbankable.

The ITA’s analysis shows that the global project pipeline will require an estimated $700bn in investment. In regions like Brazil and the Middle East and North Africa (MENA), targeted investments in green industrial projects could generate over $93bn and significantly reduce emissions, contributing to domestic green growth agendas.

Michael R. Bloomberg, ITA Co-Chair and UN Secretary-General’s Special Envoy on Climate Ambition, stressed the urgency: "The faster we move, the more we can grow the global economy and save lives. We need to cut red tape and get clean energy projects operational quickly."

Simon Stiell, Executive Secretary of UN Climate Change, highlighted the economic potential of decarbonising industry: "By investing in innovative solutions, we can not only reduce emissions but also create new jobs and economic opportunities."

Despite the growing interest, businesses and financiers remain hesitant without market certainty. Faustine Delasalle, Executive Director of the ITA Secretariat, explained: "The lack of clear demand for low-carbon products is the biggest barrier to investment. We need global policies that stimulate demand, such as carbon pricing and emissions standards."

The ITA is actively working in Brazil, MENA, and other regions to provide tailored support to project developers. Brazil has already identified over 15 greenfield projects, with a potential investment of $33bn, which could prevent 33 million tonnes of CO2 emissions annually. The MENA region, with its industrial base contributing 40 percent to its GDP, has also shown promise, with an emerging pipeline of 25 projects valued at $60bn.

Mark Carney, UN Special Envoy on Climate Action, emphasised the need for governments to develop demand-side policies that give the private sector confidence to invest in long-term green projects.

The ITA will soon release several tools to aid governments and corporations in scaling up green demand, including a Policy Playbook, Standards Map, and Green Purchase Toolkit, all aimed at providing clear steps to create the necessary market conditions for investment. The initiative stresses that progressive government policies are critical to achieving the required scale of decarbonisation and meeting global climate goals by 2030.