1. How economic and social actors can champion CO2 phase-out
REINVENT:
Realising Innovation in Transitions for Decarbonisation
Lars J. Nilsson
Lund University, Sweden

2. Questions Yes, absolutely. Why not? Quite a lot actually.
Can deep decarbonisation pathways be reconciled with the political objectives of reinvigorating European industries and strengthening economic competitiveness?
Yes, absolutely. Why not?
What does science have to say about the risks and opportunities related to innovation, deployment, financing or public acceptance?
Quite a lot actually.

3. REINVENT at a glance Zero emissions – a liberating thought.
REINVENT complements “top-down” with a “bottom-up” perspective to understand climate innovation and initiatives from within sectors.
Will assess the viability, challenges and governance implications of deep decarbonisation pathways in key emissions intensive sectors.
A platform for dialogue and learning so that policies can be better aligned with needs and conditions.

4. Steel, plastics, paper, meat/dairy
Content

5. What have we got to work with?

6. Materials and decarbonisation
Metals, minerals and organic compounds
Mitigation through emissions efficiency:
Carbon Capture and Storage
Biobased feedstock and fuels (biogas, charcoal, wood chips, etc.)
Electricity and hydrogen/hydrocarbons for fuel and feedstock
Few, if any, co-benefits but more expensive (from 30 % for bulk steel to 300 % for plastics)
Potentially large electricity user (e.g., TWh in EU)

7. The example of steel industry
“This is how the steel industry can become fossil-free“

8. Industry characteristics and innovation
Knowledge infrastructure
Government
Value chain
Processing
Manu- facturing
End consumer
basic material
resources
Technology providers
Recycling
Resource extraction
product
Industry structure: capital intensive, investment cycles, scale economies
Innovation strategies: incremental process improvements, some product innovation
Markets: bulk commodities, cyclic, small margins (but some nichés)
Public policy: safety, pollution, efficiency and shelter against disadvantages
Systemic lock-in: incumbents, no markets, no push-pull, CO2-leakage

9. Governance implications
Direction
Roadmaps, strategies, etc.
System innovation
Technology push and market pull, co-evolution of institutions
Deployment
Risk sharing and financing, state-aid rules
International policy coherence
Revisit CBDR, sectoral approaches, trade
Institutional capacity
Responsible agencies, expertise, triple helix

10. THANK YOU

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