Decarbonisation is essential for tackling climate change, but some industries face significant hurdles in reducing their emissions. These hard-to-abate sectors rely heavily on fossil fuels for energy and industrial processes, making their transition to low-carbon alternatives more complex and expensive.
As carbon regulations tighten and investors demand stronger ESG commitments, businesses in these sectors must explore innovative solutions to reduce emissions while maintaining operational efficiency.
This guide will break down the key concepts of decarbonisation, explain why certain industries are hard to abate, and explore real-life examples of strategies for reducing emissions in these high-emission sectors.
What Is Decarbonisation?
Decarbonisation refers to reducing or eliminating carbon dioxide (CO₂) and other greenhouse gas (GHG) emissions from industrial activities, energy production, and supply chains. It involves transitioning from fossil fuel-based systems to cleaner alternatives like renewable energy, energy efficiency improvements, and carbon capture technologies.
What Are Hard-to-Abate Sectors?
Hard-to-abate sectors are industries that highly depend on fossil fuels for energy and industrial processes where low-carbon alternatives are not yet widely available. These industries contribute a significant percentage of global greenhouse gas emissions and are among the most difficult to decarbonise.
Examples of Hard-to-Abate Industries
- Steel and Cement Manufacturing – High-energy processes with unavoidable CO₂ emissions.
- Aviation and Shipping – Long-haul transport that requires dense, energy-packed fuels.
- Oil, Gas, and Chemicals – Carbon-intensive refining and petrochemical production.
- Heavy Industry (Aluminium, Glass, and Mining) – Requires extreme heat and process emissions.
- Agriculture and Food Production – Emissions from livestock, soil, and deforestation.
These sectors cannot simply switch to electricity like other industries. They require specialised solutions tailored to their high-energy and high-emission needs.
Read about Australia’s Awarded Most Sustainable Company is a Hard-to-Abate industry
Why Is It Difficult to Decarbonise Hard-to-Abate Sectors?
1. Technical Barriers
Many industrial processes require extremely high temperatures that renewable electricity cannot yet provide at scale. Some processes also produce unavoidable chemical emissions, such as in cement manufacturing.
2. High Costs of Transition
Switching to low-carbon technologies often requires massive capital investments in new infrastructure. Unlike solar and wind power, hydrogen and carbon capture technologies are still expensive and not widely deployed.
3. Limited Low-Carbon Alternatives
Many sectors lack commercially viable alternatives to fossil fuels. While electric cars are replacing petrol vehicles, similar solutions for aviation, shipping, and heavy industry are still in early development.
4. Complex Supply Chains
These industries operate across global supply chains, making it difficult to track and reduce emissions across all Scope 1, 2, and 3 emissions.
5. Regulatory and Market Uncertainty
Carbon pricing, ESG reporting, and net-zero commitments vary across regions, creating uncertainty about the financial feasibility of decarbonisation investments.
Examples of Decarbonisation Strategies in Action
Decarbonisation is happening across multiple sectors through technology, efficiency improvements, and policy changes. Here are some real-world examples:
1. Green Steel Production (Replacing Coal with Hydrogen)
- Traditional steel production relies on coal-powered blast furnaces, which release massive amounts of CO₂.
- Green steel uses hydrogen instead of coal, significantly reducing emissions.
- Example: HYBRIT Project in Sweden is pioneering green hydrogen-based steelmaking.
2. Sustainable Aviation Fuels (Reducing Flight Emissions)
- Planes currently rely on jet fuel, a major source of carbon emissions.
- Sustainable Aviation Fuel (SAF) is made from biomass, waste oils, and synthetic sources, reducing emissions by up to 80%.
- Example: Airlines like Qantas and British Airways are investing in SAF for long-haul flights.
3. Carbon Capture for Cement Production
- Cement manufacturing emits CO₂ through both fuel use and chemical reactions.
- Carbon capture and storage (CCS) traps CO₂ at cement plants and stores it underground.
- Example: Norcem cement plant in Norway is implementing large-scale carbon capture.
4. Electrification of Heavy Transport (Battery-Powered Trucks & Ships)
- Diesel-powered trucks and ships contribute heavily to transport emissions.
- Electrification and hydrogen fuel cells offer a zero-emission alternative.
- Example: Tesla Semi and Nikola hydrogen trucks are changing freight transport.
5. Smart Energy Systems in Manufacturing
- Factories waste a lot of energy through inefficient operations.
- AI-driven smart energy management systems optimise processes, cutting emissions.
- Example: Companies like Siemens and Schneider Electric are leading smart manufacturing.
These examples highlight that decarbonisation is not just an idea—it is already happening.
Read more examples of decarbonisation initiatives worldwide
The Future of Decarbonisation in Hard-to-Abate Sectors
While full decarbonisation is challenging, technology, investment, and policy alignment are accelerating progress. Emerging solutions, such as advanced carbon capture, bio-based materials, and AI-driven efficiency tools, will reshape these industries over the next decade.
Predictions for Australia in 2025
- Expansion of carbon accounting software to improve emissions tracking.
- Growth in ESG software solutions to meet stricter sustainability regulations.
- Increased adoption of hydrogen and battery-electric solutions.
- Stronger incentives for businesses integrating circular economy practices.
Conclusion: Why Businesses Must Act Now
Decarbonising hard-to-abate sectors is one of the biggest challenges in reaching net-zero emissions. Businesses that take action today—by adopting carbon accounting software, improving energy efficiency, and exploring low-carbon innovations—will gain a competitive edge in the transition to a sustainable economy.As regulations tighten and investors prioritise ESG, companies that commit to carbon reduction strategies will secure long-term profitability and resilience.
Take the Next Step
Want to improve your carbon tracking and reporting? Explore our carbon accounting software to streamline emissions measurement and compliance in Australia.
