The why

Industry is the 3rd largest emitting sector in the UK, representing 15% of the total greenhouse gas emissions.

Source: HM Government, UK Net Zero Strategy: Build Back Greener (October 2021), Table 4

In 2020, industry represented 15% of the total UK carbon emissions, being the third largest contributor behind transport and energy production. Minimising carbon emissions by reducing energy and/or resource intensity during industrial processes is a key component of the UK’s transition towards Net Zero. Technology innovation has the potential to drive these improvements. Based on our analysis, industry-wide adoption of the innovative technologies supported through phases 1 and 2 of the IEEA programme for example, could lead to 40.5TWh of energy saved over ten years, which is the equivalent of 10MtCO₂e cumulative carbon savings.

Potential cumulative carbon savings from adoption of IEEA supported technologies:

Source: The Carbon Trust and Jacobs Analysis

The energy and carbon saved is equivalent to...

Powering 12% of the UK's electricity consumption for one year (2019)

Driving 5 million cars over 1 year

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The challenge

The UK's Net Zero target means a step-change in the ambition to decarbonise UK industry. Innovative technologies are required to drastically cut emissions by reducing the energy and/or resources used during the manufacturing process.

The IEEA programme was designed to accelerate the development and adoption of promising near-to-market innovations, by funding demonstration projects in an operational environment. £7 million of funding was available to support the industry transition through phases 3 and 4 of the IEEA, in addition to the £8 million awarded in phases 1 and 2.

The strategy

The UK’s industrial strategy places decarbonisation at the heart of economic growth, highlighting key priorities for transforming industrial processes:

Improving energy and resource efficiency
Electrifying processes and switching to low-carbon fuels such as hydrogen
Deploying carbon capture and storage (CCS) and other low-regret technologies
Accelerating innovation and scaling up emerging solutions

The Industrial Energy Efficiency Accelerator (IEEA) programme has unlocked the potential of new innovations by lowering risks and cutting costs for businesses, while providing funding and incubation support to developers to speed up technology deployment.

This work was supported by the Net Zero Innovation Portfolio (NZIP), a £1 billion fund to accelerate the commercialisation of low-carbon technologies, systems, and business models across industry, power, and the built environment.

Achieving net zero while maintaining a thriving industrial sector will require a wide range of initiatives, from electrification and hydrogen adoption to circular economy measures and green procurement. However energy and resource efficiency should always be considered first, and the IEEA has demonstrated that there are numerous step-change improvements to industrial efficiency still to be had.

Adopting low-regrets technologies

The IEEA programme has unlocked the potential of new innovations, by lowering risks and cutting costs for businesses, while providing funding and incubation support to developers to speed up the technology's launch.

The programme was funded through the Net Zero Innovation Portfolio (NZIP), a £1 billion fund to accelerate the commercialisation of low carbon technologies, systems and business models in industry, power and the build environment.

A wide range of initiatives will be required to achieve net zero whilst maintaining a thriving industrial sector. The government’s Industrial Decarbonisation Strategy highlights these actions and provides an indicative roadmap for the UK industry to achieve Net Zero.

The IEEA has been delivered by the Carbon Trust with support from Jacobs and Innovate UK Business Connect.