$1.6 Trillion Needed to Unlock Clean Industrial Future

The clean industrial transition is on a positive trajectory, but still requires considerable funding to reach its full potential – the latest report by the Mission Possible Partnership (MPP) shows. While facing headwinds like geopolitical risks and commodity volatility, eight projects reached Final Investment Decision (FID) over the last six months. The total number of operational or fully committed clean industrial facilities worldwide now stands at 134.

"Despite the geopolitical and macroeconomic uncertainties, momentum continues to build," MPP CEO Faustine Delasalle wrote in the report's foreword. "This is in no small part because many companies and governments understand clean industry is an economic opportunity, not just a climate imperative."

MPP's latest Global Project Tracker identifies a total of 826 industrial decarbonization projects worldwide. Of these, 692 have been announced, 65 have secured financing and passed FID, and 69 are already operational.

The report notes that the most significant progress has occurred in the chemicals and fuels sectors, particularly in hydrogen, ammonia, and methanol, while hard-to-abate materials sectors, such as steel and cement, remain more challenging due to price competitiveness and technological maturity.

The report notes the growing importance of the so-called "New Industrial Sunbelt." The term refers to a group of emerging economies like Brazil, India, Oman, Egypt, South Africa, but also Australia, all strategically positioned to lead the industry due to high renewable energy potential, abundant land availability, and improving policies.

These countries now account for nearly one-third of all announced clean industrial projects and about 25% of those that have reached FID. Their role is seen as essential to the future of globally distributed, low-emission industrial production.

Still, MPP is clear about challenges ahead, highlighting three persistent barriers: heightened trade tensions and global macroeconomic uncertainty, unclear or shifting government policy frameworks, especially concerning tax credits and carbon border mechanisms, and a glut of capacity in conventional commodities like grey steel and basic chemicals, which continues to suppress market prices and delay green investment.

As many as 700 projects remain in pre-FID status, representing an estimated $1.6 trillion in capital investment opportunity. Among these are several high-profile initiatives now facing delays or reevaluation. These include Fortescue's FSUGY  Gibson Island green hydrogen plant in Australia and ArcelorMittal's MT flagship green steel project in Europe.

Yet, MPP remains optimistic, identifying three critical drivers of enabling successful project advancement. These include declining costs of renewable energy and clean industrial technologies, stronger demand-side measures such as procurement mandates and offtake agreements, and coordinated supply-side policies to de-risk capital investment.

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