Europe can decarbonize industry without losing growth, study finds

A study by researchers from the Euro-Mediterranean Center on Climate Change, Politecnico di Milano, and Technische Universität Berlin suggests that Europe can decarbonize its heavy industries without sacrificing economic growth or its manufacturing base. The research modeled the production of steel, cement, and chemicals through 2050.

In an ambitious scenario aiming for a 90% reduction in greenhouse gas emissions by 2040, the study indicates that steel, ammonia, and methanol could be produced using green hydrogen derived from renewable electricity. Steel production would also rely more heavily on recycled scrap and electricity rather than coal or gas.

Cement production presents greater challenges because the manufacturing process inherently releases carbon dioxide even when using clean energy. The researchers suggest that carbon capture technology could mitigate these emissions, though critics note the technology has yet to be proven at a large scale. To minimize costs, the study suggests Europe might import energy-intensive raw materials and focus on transforming them into higher-value products within European factories. However, the transition will require significant infrastructure investment, with costs expected to peak around 2040.