Decarbonization Strategies in the Manufacturing Sector
Since January 2023, all companies with more than 500 employees have been required to conduct a carbon assessment that includes indirect emissions.
French manufacturing industries alone account for nearly 20% of France’s greenhouse gas (GHG) emissions, thereby contributing significantly to CO2 emissions in the secondary sector.
For these companies, this assessment is therefore an opportunity to accurately evaluate their carbon footprint and implement appropriate reduction strategies that will ensure their competitiveness and productivity.
1.4. Carbon Dioxide Capture and Storage
2. The GHG Assessment: A First Step Toward an Optimal Transition
Goals to achieve.
According to the National Low-Carbon Strategy (SNBC), the goal is to reduce industrial GHG emissions in France by 35% by 2030 and by 81% by 2050, compared to 2015 levels. Over the past few decades, technological advances, along with policies promoting deindustrialization and responsible innovation, have led to a decline in emissions from French industries. Emissions fell from 139.3 MtCO2e in 1990 to 76.3 MtCO2e in 2019, a 45% decrease. Despite these encouraging figures, industry remains the third-largest emitter in France, and its decarbonization remains a priority for the government and European institutions.
Through the France 2030 initiative, the French government has invested 5.6 billion euros in the decarbonization of French industry, including 1 billion euros earmarked for more mature decarbonization solutions, such as energy efficiency initiatives and the use of low-carbon heat.
In addition, 4 billion euros have been set aside for deep decarbonization—long-term investments in costly but essential technological transitions needed to achieve carbon neutrality goals.
Les entreprises industrielles doivent combiner solutions à court terme et stratégie à long terme afin d’optimiser leur décarbonation. Pour les grands groupes industriels, la réduction de l’empreinte carbone industrielle est devenue un chantier prioritaire. Quatre technologies émergent, annonçant le futur de l’énergie dans l’industrie en France et dans le monde.
According to the National Low-Carbon Strategy (SNBC), the goal is to reduce industrial GHG emissions in France by 35% by 2030 and by 81% by 2050, compared to 2015 levels. Over the past few decades, technological advances and deindustrialization policies have led to a decline in emissions from French industries. They fell from 139.3 MtCO2e in 1990 to 76.3 MtCO2e in 2019, a 45% decrease. Despite these encouraging figures, industry remains the third-largest emitter in France, and its decarbonization remains a priority for the government and European institutions.
Through the France 2030 initiative, the French government has invested 5.6 billion euros in the decarbonization of French industry, including 1 billion euros earmarked for more mature decarbonization solutions, such as energy efficiency initiatives and the use of low-carbon heat.
In addition, 4 billion euros have been set aside for deep decarbonization—long-term investments in costly but essential technological transitions needed to achieve carbon neutrality goals.
Industrial companies must combine short-term solutions with long-term strategies to optimize their decarbonization efforts. Four emerging technologies are shaping the future of energy in industry in France and around the world.
🌳Biomass
Biomass, which is currently the primary source of renewable energy in France, refers to all organic materials that can be used as a source of energy.
In an industrial setting, biomass is used as an alternative to fossil fuels for powering boilers or generators.
Pour les secteurs de la chimie et de l’agroalimentaire, particulièrement dépendants des énergies fossiles pour leur processus de chauffage, la biomasse offre une alternative décarbonée.
While this energy source requires an initial investment to adapt existing facilities, according to France Relance, rising fossil fuel prices are expected to encourage its widespread adoption.
⚡ Electrification
Electrification makes it possible to replace fossil-fuel-powered engines and boilers with electric components and to use electricity generated from renewable energy sources, such as wind, solar, hydro, or nuclear power.
For heating, installing electric furnaces is a good decarbonization strategy for processes that require temperatures below 11,000 degrees C.
According to a study on the potential of electrifying industrial processes, this could reduce direct CO2 emissions from French industry by up to 21% by 2035.
💧 Low-carbon hydrogen
In France, industry is—by far—the largest consumer of hydrogen. There are five types of hydrogen production:
🌑 Gray hydrogen: produced from natural gas, but emitting carbon dioxide during production.
⚫ Black or brown hydrogen —produced from fossil fuels using processes that generate high levels of greenhouse gas emissions—accounts for 95% of hydrogen production today.
🔵 Blue hydrogen: similar to gray hydrogen, but with carbon dioxide captured and stored during production.
🟢Green hydrogen: produced by electrolysis of water using electricity from renewable sources, with no carbon dioxide emissions. This hydrogen is referred to as “carbon-free” because neither its production nor its use emits CO2.
🔵Turquoise hydrogen: also produced by electrolysis, but using electricity generated by nuclear power.
To support the decarbonization of hydrogen in the industrial sector, France has set a target of 6.5 GW of installed electrolyzers by 2030.
💭 Carbon Dioxide Capture and Storage
Certain data from the Simplified Climate Report are made available to the public, thereby enhancing corporate transparency. This includes all results from the simplified reports, as well as reported information such as the company name and number of employees, with the exception of the contact information for those responsible for monitoring the simplified reports.
However, companies with more than 500 employees—which are already required to prepare a greenhouse gas inventory in accordance with Article L 229-25 of the Environmental Code—are exempt from this new requirement.
The GHG Assessment: A First Step Toward an Optimal Transition
Companies—as well as their suppliers—must examine all these strategies to reduce their carbon footprint. This is true in the construction sector, where building materials are now factored into carbon footprint calculations, as well as in the textile industry, which has a significant carbon footprint.
Technological advances in decarbonization make GHG reporting more essential than ever as a tool to help companies maintain their competitiveness and support their service providers in this ecological transition.
ADEME recommends working with a consulting firm or engineering firm to conduct a comprehensive carbon assessment, which will enable the development of a long-term strategy tailored to each company’s needs and resources.