Editing IPCC:AR6/WGIII/Chapter-11 (section)

=== 11.6.2 Transition Pathways Planning and Strategies ===

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Decarbonising the industry sector requires transitioning how material and products are produced and used today to development pathways that include the strategies outlined in Sections 11.3 and [[#_idTextAnchor006|11.4]] and Figure 11.15. Such broad approaches require the development of transition planning that assesses the impacts of the different strategies and considers local conditions and social challenges that may result from conflicts with established practices and interests, with planning and strategies directly linked to these challenges.

Governments have traditionally used voluntary agreements or mandatory energy or emission reduction targets to achieve emission reduction for specific emission-intensive sectors (e.g., UK Climate Change Agreements; India Performance, Achieve and Trade scheme). Sector visions, roadmaps and pathways combined with a larger context of socio-economic goals, with clear objectives and policy direction, are needed for every industrial sector to achieve decarbonisation and at the time of writing they are emerging for some sectors. Grillitsch et al. (2019b) working from the socio-technical transitions literature, focuses on the need for maintaining ‘directionality’ for innovation (e.g., towards net zero transformation), the capacity for iterative technological and policy ‘experimentation’ and learning, ‘demand articulation’ (e.g., engagement of material efficiency and high value circularity), and ‘policy coordination’ as four main framing challenges. Wesseling et al. (2017b) bridges from the socio-technical transitions literature to a world more recognisable by executives and engineers, composed of structural components that include actors (e.g., firms, trade associations, government, research organisations, consumers, etc.), institutions (e.g., legal structures, norms, values and formal policies or regulations), technologies (e.g., facilities, infrastructure) and system interactions.

Several studies ( [[#Åhman--2017|Åhman et al. 2017]] ; [[#Bataille--2018a|Bataille et al. 2018a]] ; [[#Material%20Economics--2019|Material Economics 2019]] ; [[#Wyns--2019|Wyns et al. 2019]] ) offer detailed transition plans using roughly the same five overarching strategies: (i) policies to encourage material efficiency and high quality circularity; (ii) ‘supply push’ R&amp;D and early commercialisation as well as ‘demand pull’ to develop niche markets and help emerging technologies cross ‘the valley of death’; (iii) GHG pricing or regulations with competitiveness provisions to trigger innovation and systemic GHG reduction; (iv) long-run, low-cost finance mechanisms to enable investment and reduce risk; (v) infrastructure planning and construction (e.g. CO 2 transport and disposal, electricity and hydrogen transmission and storage), and institutional support (e.g., labour market training and transition support; electricity market reform). Wesseling et al. (2017b) and ( [[#Bataille--2018a|Bataille et al. 2018a]] ) further add a step to conduct ongoing stakeholder engagements, including stakeholders with effective ‘veto’ power (i.e., firms, unions, government, communities, indigenous groups), to share and gather information, educate, debate, and build consensus for a robust, politically resilient policy package. This engagement of stakeholders can also bring on new supply chain collaborations and bridge the cost pass-through challenge (e.g., the Swedish HYBRIT steel project, or the ELYSIS consortium, with plans to bring fully commercialised inert electrodes for bauxite electrolysis to market by 2024).

Detailed sectoral roadmaps that assess the technical, economic, social and political opportunities and provide a clear path to low-GHG development are needed to guide policy designs. For example, the German state of North Rhine Westphalia passed a Climate Process Law that resulted in the adoption of a Climate Protection Plan that set subsector targets through a transparent stakeholder engagement process based on scenario development and identification of low-GHG options ( [[#Lechtenböhmer--2015|Lechtenböhmer et al. 2015]] ), see Box 11.3. Another example is the UK set of Industrial Decarbonisation and Energy Efficiency Roadmaps to 2050 as well as the UK Strategic Growth Plan, which are accompanied by Action Plans for each energy-intensive subsector.

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