The industrial transformation towards a green economy

The vision of an emissions-neutral society in Spain and the European Union is an objective that requires structural adjustments in the industrial sector. It is crucial to highlight that achieving this objective depends on a regulatory framework and industrial policy that incentivize companies in the sector to invest in low-emission processes that can operate on a commercial scale in the coming years.

A favorable economic framework for the transition implies not only business models conducive to technological change in the various industrial sectors; It must also promote the sustainable use of materials throughout the value chain and encourage the circularity of materials after their useful life.

These are some of the conclusions of the study “Perspectives for industrial transformation towards a green economy”, published by the Naturgy Foundation and prepared by the Technological Research Institute of the Universidad Pontificia Comillas, which reviews the complexity of the industry, current decarbonization policies and the challenges faced by the industrial sector to achieve emissions neutrality.

The report explores the main challenges for industrial transformation with the aim of offering a global vision of the technological, economic, social and political challenges to be faced.

Furthermore, according to this study, the industrial sector faces decarbonization challenges that are not comparable with those of other sectors of the economy, since the efforts and technologies necessary to achieve it can vary significantly between one activity and another, due to to the different production processes. Therefore, the energy transition of the industry requires time and a European industrial policy that accompanies and encourages the formation of an emissions-neutral Single Market, capable of promoting technological competitiveness.

Industry in Spain

With a contribution of 12.3% to the country’s added value, the industry is one of the key sectors for the Spanish economy, but also one of the largest emitters of greenhouse gases. Its carbon footprint currently stands at 24.1% of all direct emissions in the country, despite the fact that it has managed to reduce its energy intensity by 25% since 2000 and, therefore, also direct emissions.

The industrial sector has a long journey towards climate neutrality with important technological challenges. For Pedro Linares, professor at the ICAI-IIT of the Universidad Pontificia Comillas, and one of the authors of the report, “the three most difficult things to solve are, first, the provision of thermal energy at very high temperatures; second challenge, process emissions, greenhouse gas emissions that have nothing to do with the energy you use; and third challenge, the great diversity that exists as soon as you leave the large intensive sectors.”

For his part, Timo Gerres, co-author of the report and visiting professor and researcher at the ICAI-IIT of the Universidad Pontificia Comillas, believes that “it is necessary to have a regulatory framework and an industrial policy that, on the one hand, avoids relocation and carbon leak, and on the other hand, encourage companies in the sector to invest in low-emission processes that can operate on a commercial scale in the coming years and, in this way, create a climate of competitiveness in the technological race associated with the transition in the long term, through mechanisms that do not stop free trade in global markets.”

European priority

European policies such as the European Climate Law show that the transformation of the industry is a priority in the European Union. Coordination between these policies and industrial policies is essential to generate an agile and intelligent market that goes beyond current plans and proposals. Furthermore, existing regulatory measures, as well as new policies aimed at sustainable consumption, are key to creating green markets as well as a circular economy that encourages recycling and the sustainable use of materials throughout the value chain, guaranteeing circularity. of resources after their useful life.