GHG Removal Strategies for Hard-to-Abate Sectors in Asia

Published on 2025-10-10 by NetZero Asia

Asia's rapid industrialization has driven economic growth but also contributed significantly to global greenhouse gas (GHG) emissions. Key carbon-heavy sectors such as oil & gas, cement, and steel are particularly challenging to decarbonize due to their energy-intensive processes and reliance on fossil fuels. Addressing emissions from these "hard-to-abate" industries is critical for achieving regional and global climate goals.

Carbon Capture, Utilization, and Storage (CCUS)

CCUS technologies are pivotal in reducing emissions from sectors where alternative low-carbon technologies are limited. This involves capturing CO₂ emissions, transporting them, and either storing underground or utilizing in other applications.

Oil & Gas

Indonesia is leveraging its geological storage capacity to develop CCUS projects, aiming to position itself as a regional hub for carbon storage.

Cement

The cement industry, a significant emitter of CO₂, is exploring CCUS to mitigate its environmental impact.

Steel

A consortium including BHP, ArcelorMittal Nippon Steel India, JSW Steel, and Hyundai Steel is conducting pre-feasibility studies for CCUS hubs across Asia to decarbonize the steel sector.

Hydrogen Integration

Hydrogen, particularly green hydrogen from renewable sources, offers a promising pathway for decarbonizing hard-to-abate sectors.

Steel

Companies like Electra are developing electrochemical processes to produce iron at lower temperatures using renewable energy, potentially reducing emissions by up to 80%.

Oil & Gas

BP's $7 billion gas project in Indonesia includes plans for carbon capture and storage and highlights the integration of hydrogen in reducing emissions from fossil fuel extraction.

Carbon Credits and Transition Finance

Carbon credits and transition finance mechanisms are emerging as essential tools for facilitating decarbonization of hard-to-abate sectors.

Carbon Credits

Companies can generate revenue by selling verified carbon credits, which can finance decarbonization efforts and accelerate the adoption of low-carbon technologies.

Transition Finance

In Vietnam, transition finance instruments like performance-linked bonds are being used to support decarbonization of cement, steel, and chemical sectors.

Policy Support and International Collaboration

Government policies and international collaborations play a critical role in advancing decarbonization efforts in hard-to-abate sectors.

Policy Support

Germany's €6 billion industrial decarbonization program includes subsidies for energy-intensive sectors like steel and cement, promoting the adoption of cleaner production methods.

International Collaboration

The Asian Development Bank assists developing member countries in decarbonizing hard-to-abate sectors through energy efficiency initiatives, renewable energy adoption, and low-carbon technologies.

Conclusion

Decarbonizing hard-to-abate sectors in Asia requires a multifaceted approach integrating technological innovation, financial mechanisms, and supportive policies. Leveraging CCUS, hydrogen integration, carbon credits, and international collaboration, Asia can significantly contribute to global climate objectives and advance sustainable industrial practices.

Written by NetZero Asia. Explore more insights at www.netzero.asia

Disclaimer: This article is for informational purposes only and does not constitute professional advice. Readers should verify information independently and consult appropriate experts before making any decisions based on the content.