The Path to a Climate-Neutral Industry

For Agora Energiewende, Guidehouse develops policy options for the sectors steel, chemicals, and cement

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In a study for Agora Energiewende, Guidehouse developed policy instruments that would help make key low-carbon technologies available on an industrial scale as soon as possible. The policy options are intended to encourage scaling key technologies from the steel, chemical, and cement sectors, which can significantly reduce greenhouse gas (GHG) emissions, for some technologies even to near zero.

Germany has set itself the national climate goal of reducing GHG emissions by 55% below the 1990 level by 2030. By 2050, the German economy is meant to be completely climate neutral, which will require climate-neutral industrial production processes.

The technical options to render the currently carbon-intensive basic industry almost completely climate-neutral already exist today, but are considerably more expensive than conventional manufacturing processes.

Switching to low-carbon production processes calls for a comprehensive new framework to maintain competitiveness and enable companies to make the necessary investments.

Next to Guidehouse, the Wuppertal Institute; the law firm Becker Büttner Held; and the Institute for Climate Protection, Energy, and Mobility contributed to the study.

Download the study (in German) at

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