1、18 February 2025Allianz ResearchFrom hard-to-abate to decarbonized:Strategies for transforming Europes industrial sectorAllianz Research2Content Page 3-5 Executive SummaryPage 6-8 The heavyweights of emissions Page 9-13 Aluminum:Quitting coal-fired production Page 14-19 Ammonia:From grey to green Pa

2、ge 20-25 Iron and steel:Reuse,recycle Page 26-32 Cement and concrete:Cutting clinker emissionsPage 33 Green financing gap:when the ideal is far from reality18 February 2025 Four hard-to-abate industries(aluminum,ammonia,steel and cement)will play a pivotal role in Europes green transformation.First,

3、they are major energy consumers and carbon emitters.While the industrial sector as a whole accounted for 25%of the EU-27s final energy consumption in 2023 and 19%of its greenhouse gas(GHG)emissions,these four industries alone are responsible for 7.7%of energy consumption and 9.7%of emissions.Second,

4、they are providers of indispensable inputs to green industries such as solar panels and wind turbines.Therefore,their decarbonization is not only critical for achieving the EUs climate targets but also in securing strategic independence.The EU cannot afford to lose this industrial basis.Decarbonizat

5、ion and global competitiveness are two sides of the same coin.The EU can achieve both targets at the same time,even in hard-to-abate industries,if two conditions are met:a reliable and efficient energy system based on renewables and a functioning Carbon Border Adjustment Mechanism regime.The first i

6、s needed to meet the power demand of these industries with zero emissions,and the second to secure the billions of investments needed during the transition.Aluminum:Quitting coal-fired production.Aluminum is the most widely used non-ferrous metal and is crucial for sustainable industries like transp