Industry and Manufacturing

Industry is a major contributor to climate change. Many industrial sites, supply chains and customers are vulnerable to climate change and policy and consumer responses to climate change. Profits from industrial production depend on consumer demand, and how products are provided. Powerful forces such as digitalisation, dematerialisation, decentralisation, electrification, efficiency improvement and circular economies influence production and emissions Industrial firms face pressure from regulators, investors and customers. However, there is enormous potential to capture multiple benefits through aggressive, innovative decarbonisation strategies that target growth markets and involve cooperation along supply chains. Economic productivity and business competitiveness improvement can cut business costs and reduce extreme weather risk exposure, whilst positioning manufacturing companies for fast-growing markets in low-carbon resilient products and services. The chapter overviews policies national and subnational government policymakers can consider to support transition to a zero-carbon resilient industrial sector.