Emissions-intensive and trade-exposed industries: technological innovation and climate policy solutions to achieve net-zero emissions by 2050

Abstract

It is critically important to pursue the decarbonization of emissions-intensive and trade-exposed (EITE) industries in British Columbia (BC) and Canada and successfully integrate innovation-supporting policies with decarbonization policies designed to rapidly reduce industrial greenhouse gas (GHG) emissions. Focusing on EITE industries in BC, we have investigated the potential of decarbonization in five sectors: oil and gas, pulp and paper, aluminum smelting, cement clinker manufacturing, and mining. This paper examines available net-zero carbon technologies that these EITE industries could potentially adopt to achieve decarbonization targets. The key technologies identified are hydrogen, carbon capture and digitalization. Additionally, we identify continued innovation policy and support to promote the growth and prosperity of a low-carbon supply chain, BC's industrial competitiveness, and the scale-up of renewable companies and infrastructure. To aid public and private sectors in striving for sustainable pathways to decarbonization, we have developed a Technology Roadmap for BC to help policymakers and firms formulate a climate change mitigation strategy employing innovative technologies for large industrial emitters. Our analysis indicates renewable and low carbon intensity fuels such as hydrogen can play a vital role in reducing emissions across a wide range of BC's EITE sectors (i.e., displacing diesel and eventually natural gas), thus having economic and environmental benefits for BC.