Pressing ahead with the decarbonisation of industry
Through the Climate Club, the International Climate Initiative (IKI) is helping to reorganise industrial processes worldwide in a climate-friendly way.
The decarbonisation of industry is one of the major global mitigation measures to achieve greenhouse gas neutrality. When it comes to switching to climate-friendly production processes, Germany has the potential to use its technological innovation force and strong industry to develop solutions that set global standards – for a climate-neutral and competitive economy.
Germany and other important partners have created the Climate Club as an international committee to discuss major issues of industrial decarbonisation at the highest level. The goal is to position comparable climate protection targets in the most important industrial and emerging countries. However, emerging countries in particular need support to achieve this.
With contributions from the IKI and the United Nations Industrial Development Organisation (UNIDO), a new Climate Club mechanism was introduced in the course of 2024 and officially launched at the COP29: the Global Matchmaking Platform (GMP). This platform makes it possible to combine the requirements of emerging and developing countries with existing and additional support programmes from partner countries and other international actors. Several countries have already expressed their interest in the platform and some initial pilot projects are already being implemented and set up with various countries, including Cambodia, Chile, Colombia, Indonesia, Kenya and Morocco.
The “Global Pledge for Industry Decarbonisation Assistance” links up with the GMP. The pledge bundles the funds that Germany, the United Kingdom, Canada and the Climate Investment Fund (CIF) wish to provide for the decarbonisation of industry in emerging and developing countries. The total volume of the pledge is up to 1.3 billion US dollars.
Around 185 million euros of the 210 million euro German contribution comes from IKI funds. IKI funding is made up of deposits into existing funds at the World Bank (Energy Sector Management Assistance Programme, ESMAP), the United Nations Development Programme (Climate Promise), UNIDO and planned bilateral projects with an industrial focus. With the 2024 thematic call launched at the COP29, the IKI is searching for project ideas for scaling innovative financing solutions for the decarbonisation of energy-intensive industries. This also includes the IKI share for the Mitigation Action Facility, a multiple-donor platform with a steadily growing industry portfolio. The platform launched its new call at the COP29, which once again identifies the topic of industry as one of three focal issues.
In addition, the IKI promotes the decarbonisation of industry with individual large-volume projects. Current examples include a thematic focus on the decarbonisation of the construction and basic materials industry in the 2023 thematic call (call conclusion 2024) and a project outline from the 2024 Brazil country call, aiming to promote the decarbonisation of the steel and cement industry. The submitting implementing organisations were invited to submit a detailed project proposal at the end of 2024. In addition, six outlines are in place for the decarbonisation of the heavy and light industry sectors selected for project preparation in 2024 as part of the Mitigation Action Facility, and are operating in Brazil, India, South Africa, Türkiye and Vietnam. Mitigation Action Facility: Call for project 2025
funding
was committed by the IKI in 2024 for projects that contribute to the decarbonisation of industry.
Project overview 2024
Projects started
- Supporting Colombia’s Just Energy Transition, climate resilience, and food security by introducing inclusive agri-photovoltaic systems (JET- AgriSOL)
- Supporting China’s climate targets through ambitious green and low-carbon energy transition
- Accelerating Egypt’s energy transition through decommissioning of fossil-fuelled power plants
- PARTNERSHIP FOR NET ZERO INDUSTRY: Sustainable national transformation pathways to climate neutral industry by 2050
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IKI Annual Report 2024
This article is part of the IKI Annual Report 2024.
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