New York, 24 September 2024 - At the UN Summit of the Future in New York, a Ministerial/CEO high-level roundtable convened to explore ways to mobilize large-scale financing to decarbonize heavy-emitting industries in developing countries. The United Nations Industrial Development Organization (UNIDO) played a key role in this event, contributing its expertise in fostering international cooperation and driving industrial transformation toward net-zero emissions.

Industry is currently responsible for approximately one-third of global energy consumption and one-quarter of global greenhouse gas (GHG) emissions. Heavy industries, including cement, concrete, iron, and steel, must reduce their emissions by 20% by 2030 and by 90% by 2050 to meet the goals of the Paris Agreement. This urgent need for decarbonization demands an industrial transformation, with partnerships, technological collaboration, and access to financing being critical to success.

UNIDO is helping tackle this challenge, working to decarbonize these industries through international cooperation and mobilizing resources. The transition to net-zero industries will require significant investment—USD 235-335 billion in additional funding by 2050 for the steel sector alone, and up to USD 300 billion to decarbonize cement. Developing countries, where demand for steel and cement is expected to increase by 30% and 45% respectively by mid-century, are central to global decarbonization efforts but face difficulties in securing financing for industry transformation.

During the roundtable, Fatou Haidara, Deputy to the Director General and Managing Director of the Directorate of Global Partnerships and External Relations at UNIDO, delivered the opening remarks, stressing the importance of collaboration. She urged the international community “to build momentum, unlock financing, and leverage private capital to drive industrial transformation while ensuring a fair and equitable future for all.”

One recent example of such partnerships is the collaboration between Environment and Climate Change Canada and the Government of Thailand, which UNIDO is implementing. The initiative, valued at CAD 8 million, aims to strengthen climate governance in Thailand’s cement and concrete sectors by bringing together various stakeholders to advance toward net-zero carbon concrete. The program will focus on policy and regulatory frameworks, education reforms, and knowledge-sharing with other countries in the Indo-Pacific region.

This initiative is part of UNIDO’s Industrial Deep Decarbonization Initiative (IDDI), which works with governments to create markets for low-carbon industrial products such as steel, cement, and concrete. It also aligns with the Breakthrough on Cement and Concrete, co-chaired by Canada and the United Arab Emirates.

Cherdchai Chaivaivid, Ambassador and Permanent Representative of Thailand to the United Nations, emphasized the role of international cooperation in achieving climate goals, stating, “Industry decarbonization is one of the keys to help us meet climate targets. We are sending a very strong message to the world on the importance of international cooperation and that climate finance is key to enable climate action.”

Michael Bonser, Assistant Deputy Minister for International Affairs at Environment and Climate Change Canada (ECCC), stressed: “It is our collective responsibility to ensure that the demand [for economic growth] is met with low carbon materials. This is why Canada is taking action on industrial decarbonization [and] why I’m pleased that Canada is supporting Thailand in decarbonizing its cement and concrete sector as part of our $5.3 billion international climate finance commitment”. The bilateral climate finance project will respond directly to the needs and priorities of Thailand to create an “investable environment”, explained Bonser. 

Chana Poomee, Chairman of TCMA, explained the game-changing support that the cement industry will receive by working with UNIDO, the Canadian Government and GCCA, including the launch of demonstration pilots to deploy and commercialize low-carbon technological solutions in Thailand, like carbon capture, utilization and storage (CCUS) and green hydrogen.

Thomas Guillot, CEO of the Global Cement and Concrete Association (GCCA), said: “80% of cement production is in the global south, so funding, finance mechanisms and enabling policies are essential to unlocking a net-zero future for our industry across the planet.  Our collective mission with partners like UNIDO and wider is to ensure we can make significant advances to make our industry’s transition feasible everywhere”.

Complementing Canada's support to decarbonize cement and concrete, Thailand will receive targeted support from the Global Environmental Facility for its industry including steel.

Setting off the green chain reaction

The project is proof that the innovative ‘chain reaction’ , launched one year ago, brought about by multilateral institutions in the UN and international finance institutions to address enabling policies and investment bottlenecks to achieve financing at scale, is starting to deliver.

First link in the chain: Creating a market for low-carbon products

The role of harmonized global standards for defining low-carbon materials to create markets and facilitate financing was underlined. “We need an eco-system that is speaking the same language,” said Annie Heaton, the CEO of Responsible Steel.

Speaking about the role of governments in driving demand for low-carbon construction materials, Matt Toombs, Director of International Climate Finance & Strategy at the UK Department for Energy Security & Net Zero, underlined: “Governments bring real purchasing power and we need to use this power effectively to ensure there is market certainty and to incentivize producers to go green.”

He called on governments to help boost demand for low-carbon green steel, cement and concrete by signing up to the Green Public Procurement Pledge of the Industrial Deep Decarbonisation Initiative (IDDI). 

Second link in the chain: Catalyzing investments

Programs bringing a consolidated and scaled offer for emerging markets and developing economies are starting to emerge. Climate Investment Funds’ (CIF) new Industrial Decarbonization Program will “use concessional funding to catalyze investment for green steel and green hydrogen”, explained CIF's CEO Tariye Gbadegesin.

The Global Matchmaking Platform, a support facility of the Climate Club operated by UNIDO that will connect emerging and developing economies with technical and financial solutions for industry decarbonization, will be launched at COP 29.

Third link in the chain: Mainstreaming climate finance to scale up

The ECCC funded project will support the development and implementation of clean technology pilots that can be co-financed or scaled up through private finance, bringing in local banks and financial institution partners such as the International Finance Corporation (IFC).

Pivotal moment for climate action

The next weeks and months will see significant developments on the climate stage with climate finance in the spotlight. It is critical to have more of these partnerships. Further discussions at COP29 and other global fora, such as the G20, G7 and the International Vienna Energy and Climate Forum, should focus on scaling up financing for industrial decarbonization.

“We need to accelerate our efforts. We need the investments to start flowing today. We need the private sector finance to come in now. Most importantly, we need to work together to build alignment and momentum towards industrial decarbonization to create an accelerated and scaled up financing for industrial decarbonization,” said Rana Ghoneim, Chief of the Energy and Climate Action Division at UNIDO, in her concluding remarks.

For more information please contact:

Rasha Abdrabu,

Industrial Development Expert, UNIDO

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