Despite increased output, the combined 0.9% reduction in emissions the eight sectors managed between 2022 and 2023 is a significant improvement compared to the increase of overall emissions globally in the same period. Moreover, while overall demand across the eight hard-to-abate sectors increased at an average of 9.2% between 2019 and 2023, total emissions and emissions intensity declined, showing that emissions reductions have been driven by improved efficiency and decarbonization efforts rather than reduced output. Indeed, five out of the eight hard-to-abate sectors (aluminium, cement, chemicals, aviation and trucking) reduced their emission intensity, driven by factors such as increased use of low-carbon power, reduced coal consumption, greater energy efficiency and more recycled metals.

The report highlights key barriers to reducing emissions in these sectors, including high interest rates, political uncertainties, trade restrictions and limited availability of new clean-energy technologies. Significant investments must also focus on developing infrastructure for low-carbon power, hydrogen, and carbon capture, utilization and storage.  While infrastructure development for low-carbon power has been encouraging, hydrogen and CCUS infrastructure currently address less than 1% of sector requirements.

New this year, the Tracker highlights the potential of generative AI to accelerate the decarbonization of hard-to-abate sectors. By enhancing productivity, streamlining operations and optimizing energy use, generative AI could improve capital efficiency by 5-7%, reducing net-zero investment needs by up to $2 trillion. Beyond cost savings, AI offers tools for asset management, R&D acceleration and transparency through product-level carbon reporting. However, the widespread adoption of AI could also significantly increase electricity demand, raising concerns about competition for limited low-carbon energy resources.

“Heavy industries hold the key to global decarbonization goals, with AI demonstrating real potential in helping meet the challenge of net zero,” said Muqsit Ashraf, Group Chief Executive for Accenture Strategy. “Leaders who harness the productivity potential and economic value of generative AI will be on a reinvention-ready path—one that helps avoid expanding emissions and makes good on the promise of AI as a critical lever for decarbonization.”

Espen Mehlum, Head of Energy Transition Intelligence, World Economic Forum, added: “A system approach is needed to simultaneously solve several challenges associated with scaling up clean-energy technologies and infrastructure important in the hard-to-abate sectors. Policymakers can accelerate developments by creating incentives aligned with the goals of the hard-to-abate sectors, energy suppliers and consumers to benefit everyone involved.”

Changes to the Net Zero Industry Tracker 2024
In previous editions, the report included ammonia as one of the eight industries. This year, the report has expanded to include a set of primary chemicals (ethylene, propylene, benzene, toluene, mixed xylenes, ammonia and methanol), which together contribute to 2.5% of global greenhouse gas emissions. This has also increased the overall volume of emissions being tracked.