Renewable electricity and efficiency measures can only go part way to decarbonizing heavy industry. The main barriers are access to enough on-demand renewable power, the need for intense heat, and the carbon dioxide produced in some common chemical processes.
CCUS is currently the most promising and in some cases the only viable way to remove the remaining emissions from making cement, steel, chemicals and fertilizers.
Without CCUS, rising carbon prices in some countries could make their heavy industries uncompetitive, pushing production into countries where emissions are not regulated. Then as countries introduce carbon border taxes to re-level the playing field, exporters will need to introduce CCUS or other decarbonization solutions to remain competitive. In July 2021, the European Commission announced plans for such a carbon border tax, to be phased in from 2026.
With CCUS to lift the carbon burden, industrial regions can survive and flourish while moving to low-carbon production. As well as preserving traditional industries and all the jobs that go with them, it promises to minimize disruption to society and economy by making use of existing infrastructure. The CCUS industry itself will bring new jobs and income. It can also enable industrial regions to reinvent themselves as low-carbon technology hubs, attracting new low-carbon businesses.