Climate Change, Energy Transition and Global Industry’s Challenges and Opportunities: Roadmaps for a Sustainable Industrial Future

Abstract

There is a growing intensity of global pressures on industry and economic competitiveness as a result of the increasing climate change. This tends to propel global energy transition away from fossil fuels to renewable and low-carbon energy systems. This is the reshaping pedestal upon which industrial operations, investments and policy frameworks are placed. However, this transition is accompanied by disruptive challenges and transformative opportunities for industry. This paper presents a descriptive and position-based analysis of secondary data to assess the relationship between climate, energy transition and industry. Therefore, the study assesses impacts, strategies of adaptation and policy roadmaps for a paradigm shift to clean or renewable energy in the industry. Findings revealed that carbon pricing and technological lock-in remains the highest transition risks faced in industries that use energy intensively like steel, cement and chemical industries. Despite the risks and vulnerabilities, opportunities present circular economy, green hydrogen, electrification and digitalization. These opportunities have the capacity to reduce the level of industrial emissions up to 50% by 2030. Data were collated and synthesised from IEA World Energy Outlooks, UNFCCC, Peer-reviewed journals, IRENA, and IPCC Reports. Regional differentials showed that while developing economies contends with financing, technology and infrastructural deficits to green their environment, developed economies thrive better in the deployment of renewable technology, policy and innovation. It is on this note that this paper concludes that a well-managed energy transition that is just in implementation remains the pathway to a green environment and sustainable economy. This could be achieved through collaboration of government and the industry as well as a strong financial backup and blue-print applicable to specific sectors. There is an inevitable need to embrace proactive adaptation measures to mitigate the climate shocks resulting in supply chain disruptions and cost of operations in the industry.