The Antalya Green Industrialization Compact, introduced in connection with the United Nations Climate Change Conference (COP31) in Antalya, Turkey, calls for stronger international cooperation, increased financing and the development of markets for near-zero and low-emission industrial products, particularly in energy-intensive sectors such as steel.
According to the initiative, industry accounts for approximately one-quarter of global direct carbon emissions, with steel, cement and chemicals together responsible for around 70 percent of industrial emissions. Green industrialization is identified as a strategic component of climate action and economic development, emphasizing the need to strengthen industrial competitiveness while accelerating the transition toward lower-emission production.
Near-zero-emission steel and cement require over $500 billion in investment by 2035
Citing a report by the International Energy Agency (IEA) and the Organization for Economic Co-operation and Development (OECD), the document states that cumulative global investment requirements for near-zero-emission steel and cement production exceed $500 billion during the 2026-2035 period. However, less than $20 billion has so far been committed to projects that have reached a final investment decision (FID), highlighting the gap between planned industrial transformation and committed investment.
High capital costs, insufficient infrastructure, limited access to technology and higher production costs for near-zero-emission materials are identified as major obstacles to industrial decarbonization. These challenges are particularly significant for emerging markets and developing economies, where financing costs and limited access to technological expertise can restrict investment.
Calls for increased financing for industrial decarbonization projects
To address these barriers, participating countries commit to advancing efforts to mobilize public and private financing through risk-sharing mechanisms, concessional and blended finance, and instruments providing greater revenue certainty.
Technical assistance, knowledge sharing and the development of investment-ready industrial decarbonization projects are also encouraged under the initiative. These measures are intended to improve access to financing and support the implementation of low-emission industrial technologies, particularly in countries facing greater financial and technological constraints.
Green public procurement and carbon pricing could support low-emission steel markets
The development of markets for near-zero and low-emission industrial products is identified as essential to improving the commercial viability of decarbonization investments. Green public procurement, contracts for difference and carbon pricing are highlighted as potential mechanisms for addressing the additional costs associated with cleaner industrial production.
Participating countries also aim to improve the interoperability of emissions accounting methodologies, standards and product labels across jurisdictions, supporting transparency and international trade in lower-emission materials. The need to consider affordability and cost increases throughout industrial supply chains, particularly for downstream manufacturers and trade-exposed sectors, is also emphasized.
International cooperation aims to address carbon leakage risks
Given the international nature of trade in energy-intensive industrial products, companies investing early in decarbonization technologies may face competitive disadvantages compared with producers operating under less stringent carbon regulations. Accordingly, participating countries commit to strengthening international dialogue on carbon pricing approaches and improving the compatibility of carbon accounting methodologies.
Such cooperation should respect national circumstances, development priorities and different policy choices while helping mitigate carbon leakage risks, according to the compact. Stronger cooperation across industrial supply chains is also encouraged to support competitive global markets for near-zero and low-emission materials.
Two quantitative global targets proposed by the COP31 Presidency for 2035 are also referenced in the document. The first involves increasing electricity's share of global final energy consumption to 35 percent through the Global Electrification Pledge. The second aims to raise the circular material use rate in production and manufacturing to at least 15 percent. Industrial transformation is expected to play an important role in achieving these ambitions through the electrification of production processes, manufacturing of clean energy technologies and increased material recovery and reuse.
Three areas outlined for international industrial cooperation
Three main areas for cooperation are outlined: expanding access to financing and developing investment-ready projects, creating markets for near-zero and low-emission industrial products, and strengthening international cooperation on carbon pricing and carbon leakage prevention.
Countries and parties are invited to join the initiative, while businesses, investors, financial institutions, research organizations and other stakeholders are encouraged to support implementation through voluntary investments, partnerships and other activities. The importance of coordinated international action to accelerate industrial decarbonization while maintaining competitiveness and supporting economic development is also emphasized.
