How the IKI contributes to the decarbonisation of industry

COP29: Launch of the Global Matchmaking Platform and the International Alliance for the Decarbonisation of Industry. 

The industrial sector is responsible for around 23 per cent of global CO₂ emissions (IEA 2021). The topic of industrial decarbonisation is attracting increasing international attention. In establishing the Climate Club together with important partners, Germany has created an international body that discusses key issues at the highest level. The aim is to ensure that not just a few countries define precise decarbonisation targets for their industrial sector, but that comparable climate action targets are defined in the most important industrialised and emerging countries. However, developing countries in particular need support here. Building on national experience, the International Climate Initiative (IKI) is therefore also getting increasingly involved in this area and specifically expanding its support for projects with a focus on industrial decarbonisation: 

The Climate Club and the International Climate Initiative 

Using contributions from the IKI, the Climate Club has teamed up with UNIDO to set up a new mechanism in the form of the Global Matchmaking Platform (GMP). This platform aims to accelerate the decarbonisation of emissions-intensive industries and promote the development of low-emission industries in emerging and developing countries. The platform can be used to bring together the needs of emerging and developing countries with existing and additional offers of support from partner countries and other international players. The GMP was officially launched on 18 November 2024 as part of COP29. 

Click here for the UNIDO press release

The “Global Pledge for Industry Decarbonisation Assistance” follows on from the platform that Germany has initiated together with the other Climate Club members. The pledge pools the funds that Germany, the United Kingdom, Canada and the Climate Investment Fund (CIF) intend to make available for the decarbonisation of industry in emerging and developing countries. In total, these countries have pledged up to USD 1.3 billion for industrial decarbonisation for emerging and developing countries. 

Click here for the BMWK press release (in German)

Germany’s contribution to the global decarbonisation of industry in 2024

In total, the funds that Germany plans to make available for industrial decarbonisation in developing and emerging countries amount to around 210 million euros. The International Climate Initiative intends to contribute around EUR 185 million through various bilateral and multilateral channels. These funds will include 

• payments into existing multilateral funds, 
• contributions to the Mitigation Action Facility with a term of up to eight years and 
• planned bilateral projects with an industry focus, which also have a term of up to eight years. 

The Federal Ministry for Economic Cooperation and Development will be providing a further 25 million euros. 

Background information: Climate Club initiative for global decarbonisation 

Federal Chancellor Olaf Scholz took Germany’s G7 Presidency in 2022 as an opportunity to establish the open and cooperative Climate Club, aiming to support the rapid and ambitious implementation of the Paris Agreement and accelerate climate action measures to reduce emissions. As an inclusive forum of ambitious industrialised, emerging and developing countries, the Climate Club helps to establish an open dialogue at the highest level on topics such as ambition paths, carbon leakage and common definitions of sustainable industrial processes, as well as promoting the decarbonisation of particularly emissions-intensive industrial sectors. Moreover, the Climate Club provides its member states, the number of which has now increased to 43, with the opportunity to address their own needs on the Global Matchmaking Platform. These issues can then also be taken up by the IKI.

Field of work of the International Climate Initiative in the context of the Climate Club

The Climate Club is based on three pillars:

• Promoting ambitious and transparent policies to mitigate climate change
• Transforming industries
• Promoting international climate cooperation and partnerships

The promotion and facilitation of climate action measures and improvement of the framework conditions for industrial decarbonisation in developing and emerging countries, which fall under the third pillar, form the central field of work of the IKI.

Click here for the topic page ‘The IKI at COP29’