Phase out unabated coal-powered industrial facilities

Reaching economy-wide net zero by 2050 will require some emission-intensive assets to be retired early. It will also require enabling companies that are heavily invested in these assets to smoothly transition to cleaner ones.

Policy-based frameworks, incentives and penalties for owners and operators of carbon-intensive assets to phase out unabated coal-powered industrial facilities, including all units that are not retrofitted with CCUS capabilities, should thus be a priority. This process can look like introducing and gradually tightening CO2 standards for existing assets and setting a clear and mandatory phaseout timeline. Such measures can be designed to offer a path for investors to decommission or retrofit emission-intensive assets and avoid uncertainty for owners and operators as facilities are retired.