The ongoing debate about climate change underscores the urgent need for industries worldwide to focus on lowering their carbon footprint and the use of non-renewable resources. In response, producers of goods and services, as well as governments around the world, are exploring innovations in manufacturing that potentially enhance resource productivity and reduce the negative effects of waste on the environment. The industrial sector in some regions is seeking, if not already adopting, industrial practices that decentralize and slow down the use of limited resources and materials and lower greenhouse gas emissions. In the context of the importance of investigating such developments, the industry characteristics that support net-zero emissions are disseminated.

The applicability and implications of the fact that net-zero industries are predominantly associated with highly developed market economies for those in the developing world are then reflected. Supported by an overview of international agreements and guidelines, some policy options—often dependent on technological advancement—that might help developing nations transition to lower-emission industries are subsequently explored. In sum, the dynamic interplay between the evolving international socio-political order, technological innovation, global value chains, and domestic institutional and market structures underpinning the establishment of low-emission manufacturing is elucidated.

Current economies need to reduce the carbon footprint of their goods and services industries and recognize the other side of the globe to invest in a national low-carbon growth strategy. Circular practice initiatives in high-income nations help to balance the planet’s lopsided consumption-production trajectory and reduce the pressure on its limited resources by decoupling economic growth from the usage of raw materials and waste.

This has replaced the importance of productivity in the sustainable discussions of distant economies about nature and wealth, and these are now often referred to as ‘net-zero emission sectors.’ Being on the lower end of planetary socio-economic metabolism, sectors of developing nations are traditionally caught between competing pressures for maintaining a degree of domestic economic competitiveness and engaging in industrial practices that guarantee them access to a global wealth transfer.

There is an obvious disadvantage to the predetermined shaping of industrial economies where less reliance is placed on extractive activities and efforts are made to leapfrog onto industrial niches aimed toward a less material-intensive output landscape there. The unequal distribution of technical and engineering capabilities is reflected in the international supply chain.[1]

1.1. Introduction

It is imperative that global carbon emissions decrease significantly by 2030 in order to combat the devastating effects of climate change. This will require immediate and unprecedented action across all sectors, though it is widely recognized that manufacturing, transportation, and energy systems are among the most critical industries with the largest carbon footprints. The industry generates 17.5 GtCO2 annually and its emissions are expected to rise following pre-pandemic patterns unless urgent mitigation scenarios are put into effect.

In the transition toward net-zero industry, complexity arises, given the scattered nature of industrial processes and an intricate range of competitors in local and global markets. The establishment of frameworks and directives to guide industries on an international and systemic level is imperative to provoke swift and effective change. These significant issues form the basis for this insight, illustrating how they contribute to solutions that have successfully transitioned industries in lower-income countries.

1.1.1. What is Net-Zero Industries?

Net-zero industries refer to operations across industries that emit the nominal amount of greenhouse gases into the atmosphere. Such ambitions provide a crucial idea of what constitutes net-zero emissions: that is, the equilibrium of carbon dioxide equivalent (CO2eq) gases released and sucked out of the environment in a specific sector or process.

The potential of such a transition across sectors that are responsible for a significant amount of global emissions is then explored through immediate reductions, the search for substitute methods, and finance to scale. Firstly, this piece puts net-zero emissions into context by considering the global and industrial sectors through the measurements and categorization of emissions. Secondly, the main processes and industries this terminology is herein referred to are detailed. Lastly, the significance of the transition in industries is clarified and the scope of the study is outlined, underscoring the methods and form of this analysis. The discussion seeks to explore pathways for the change of industries toward sustainable practices and provides a solid foundation for prospective analysis of such systems.

1.2. Definition and Scope

Net-zero industries aim to significantly reduce their emissions wherever possible, with the ultimate goal of eliminating greenhouse gases from their operations. While economic activities naturally produce greenhouse gases, net-zero industry practices seek to limit the emission of additional detrimental gases. This can involve mitigating emissions at the source, capturing released gases, or leveraging complementary processes. Emissions arise from a range of activities that are typically separated into scopes.[2]

Scope 1 refers to direct emissions from a source owned or controlled by the entity, such as fuel combustion or process releases. Scope 2 is dedicated to indirect emissions from purchased electricity and heat. Scope 3 pertains to the indirect emissions of the value chain, occurring both upstream and downstream. While these scopes are commonly applied to individual companies, they are constructed to extend across national borders.

The net-zero industry is a generalization of these definitions that attempt to address a vast landscape of companies and sectors.[3] This framework investigates the applicability of net-zero practices in the context of developing nations, as this side of the research has thus far been underexplored. While industrial activities are diverse, they all involve manufacturing or processing, including the extractive sector and the construction of infrastructure. This is to draw a line between industrial activities and other economic sectors like energy generation, agriculture, or public services. It is also made evident that no industry is self-sufficient; they all need resources and depend on one another.

The potential for interconnectedness and the convergence of other sectors toward net-zero ambitions is therefore acknowledged. International approaches to developing or adopting net-zero practices have largely revolved around the Paris Agreement. It is widely accepted that the net-zero global emission target can only be reached with significant reductions from industrial activities.

1.3. Importance and Benefits

One of the most critical challenges facing contemporary industries is moving toward a more sustainable and ethical operational model. The environmental implications of the industry have been well documented, with certain practices leading to pollution, resource exhaustion, and habitat destruction. To combat the growing onset of climate change, countries have committed to achieving net-zero emissions by reducing greenhouse gases across all sectors to avoid more than a 1.5°C rise in global temperatures. The industrial sector is a significant contributor to global greenhouse gas emissions. According to the U.S. Environmental Protection Agency (EPA), industry accounted for 24% of global greenhouse gas emissions in 2019, and as such, transitioning to cleaner and more sustainable economic activity is equivalent to reaching climatic targets.

The benefits of such a shift are intended to work in multiple ways, creating an ecosystem that is conducive and beneficial for net-zero innovation. In the first instance, there are the environmental benefits. Conforming to climate target goals will inevitably lead to widespread reductions in natural resource extraction, waste production, and environmental degradation. Ecosystems will be allowed time to recover and replenish, hopefully restoring habitats and mitigating species extinction. In turn, industry will benefit from increased biodiversity, stable climatic systems, and more predictable environments, which may result in occasional losses due to environmental hazards.[4]

Energy efficiencies will increase, whilst for resource-based industries, future security will be more robust, decreasing the likelihood of armed conflict over rare commodities. A healthier population results in greater productivity and a lower probability of work absences, generating economic benefits that significantly reduce the long-term cost of eco-friendly adaptation. An industry that prospers thanks to green technologies is attractive to investment, a fact compounded by stringent environmental regulations that may, in the future, banish less sustainable industries, either shuttering polluting companies or forcing them to shift their practices to cleaner alternatives.

For consumers, there are similar upsides; products that are environmentally conscious in their extraction, production, and end-life will continue to meet future societal standards, and the potential cost savings of the greener companies may be proportioned as lower consumer costs compared to similar products. Brand reputation is at an all-time high for sustainability.

Consequently, the demand for eco-friendly products is projected to increase in the coming years, and as such, companies that want to avoid consumer criticism will need to modify their operations if they wish to remain competitive. Those already in conformity with environmental standards are well poised to sweep up significant portions of the market while greener practices are being mastered by their competitors.

2. Innovations in Manufacturing for Achieving Net-Zero Emissions

This section presents the innovative frontier of environmental technologies in manufacturing and showcases experimental and emerging developments that may lead to significant reductions in environmental impact. The social and policy aspects of environmental norms and standards are largely ignored, as they are seen as external factors. Instead, the focus is on technological complexity and the diversity of industrial contexts. The main argument is that only by understanding the unique needs, capabilities, and challenges of both sustainable technologies and manufacturing companies can the much-needed innovations be forged.

The discussion is organized around several emerging technology fields in manufacturing—eco-materials, energy efficiency, functional design, automation, and smart manufacturing. Together, they highlight a highly complex and fragmented landscape of technological innovation in manufacturing intertwined with the equally complex task of making sustainable practices. This is done by exploring the combination of technological development in the academic and commercial sectors and critically assessing the potential for wider adoption and scalability outside the leading examples.

2.1. Sustainable Materials and Processes

With the aim of net-zero emissions, some of the most important industries, such as aerospace, cement, chemicals, iron and steel production, oil refineries, pulp and paper factories, power plants, and other factories, need to be decarbonized. Industries around the world are exploring innovative materials and processes, especially in the global North. This includes the use of bio-based materials and recycling and the use of renewable energy in the production process, as well as different processing methods.

Given that these industrial processes, based on integrated resources and energy systems, and the reality found in many emerging economies differ significantly, tailored strategies must be developed to bridge the gap between advanced technology and local constraints. While energy and material efficiency are considered efficient in older industrial countries, materials involved in the energy systems’ overall efficiency are not and represent a missed opportunity. The question is what lessons developing countries could draw from ongoing initiatives and what could be replicable on the Southern side.

A particular focus could be given to parameterizing a series of innovative processes allowing waste and energy consumption to be minimized and on modeling lifecycle assessments (LCAs) to evaluate the comprehensive environmental impacts from the extraction of the raw material to their disposal. The potential for and costs of implementing these paradigms in industrial settings should also be considered, alongside the triumphs and existing and foreseeable difficulties. Emerging economies are starting to thrive in manufacturing sectors such as aerospace, automotive, electronics, textiles, pulp and paper, packaging, chemicals, construction, and cement industries, and these sectors should be a priority to ensure a consistent and sustainable transition.

2.2. Energy Efficiency Technologies

The importance of energy efficiency standards, technology and their delivery as robust net-zero industrial strategies is widely recognized.[5] Innovative technologies in manufacturing result in sustainable production practices. The net-zero economy approach to this paradigm shift in the manufacturing sector by 2060 involves the implementation of advanced, innovative, sustainable, and clean production technologies.

By reducing final energy consumption, improving material efficiency, optimizing resource utilization, and incorporating the principles of recycling and re-manufacturing, new innovative technologies improve environmental and economic benefits. In a changing business environment, the ability of manufacturing firms to adopt these technologies depends, among other things, on their innovation capacity, organizational characteristics, and industry context.[6]

The adoption of technological innovations, particularly in energy efficiency, is the most direct way to reduce industrial CO2 emissions. It suggests adopting a set of energy-efficient machines and equipment along with integrating renewable energy sources and digital tools for a demand-side response. The feasibility of reducing CO2 emissions through the widespread adoption of advanced energy-efficiency machinery and equipment, including energy storage capabilities, was evaluated in a 2060 net-zero industry scenario.

A set of innovative technologies was identified for the production and energy transference of iron, steel, and metals to drastically increase energy efficiency. Besides a comprehensive analysis of the energy and exergy flow for this scenario, the effect of implementing such innovations on greenhouse gas emissions and costs will be discussed. The scenario will be investigated by a reasoning-based approach and a toolbox of methodologies and tools for modeling, analyzing and monitoring the industrial energy system of participating industries.

3. Case Studies and Best Practices

Here are highlighted case studies and best practices from multiple industries that have successfully implemented a net-zero strategy. It is structured in two parts. The first unveils successful cases involving industries from developed nations, which have reaped the benefits of a range of innovative practices; the objective being to inform industries in developing countries of the variety of approaches and practices available to shape their sustainability goals and transitions.

The second part goes on to present the potential for industries in developing countries to apply the same strategies for a similar transition toward net zero; it explores how developed nations have enabled these strategies and how they can be translated to the context of different developing nations. The purpose is for industries around the world to be inspired by the successful case studies discussed in the first part as well as the lessons learned discussed in the second part that are applicable to different contexts and at different stages of economic development.

The first part is focused on how industries leading the race to net zero around the world are transforming these challenges, such as cutting down emissions, into business opportunities and with a strong commitment to ensuring civil society is also involved and benefiting from the changes. It highlights companies in leading nations such as Germany and China. The second part focuses on emerging economies that are leading the way in green industrialization and improvement of manufacturing processes as well as incorporating knowledge-sharing commitments to allow a standard understanding of state-of-the-art technologies around countries like Brazil and India, amongst others.

The second section focuses on the high-emission construction industry and introduces a strategic roadmap to net-zero transition. The third section details the actions and impacts of a collaborative initiative for companies in the fashion industry. Finally, the case of six big corporations is discussed, which have taken bold actions to address industrial emissions across various countries. Broad in scope, these cases have covered various timeframes, geographies, and sectors, helping readers gain a comprehensive learn-by-example insight.

3.1. Developed Nations’ Success Stories

To showcase how a net-zero industry can be successful and to support the ambition for all companies to become net-zero, case studies are presented from countries that follow comprehensive net-zero targets. Net-zero focus is on it, as it is about the most essential thing: to commit to transition to become net-zero by a specific deadline. Three cases from developed nations and one from a developing nation that can become models for net-zero industries in various countries are initially presented, countries where the industries and policymakers have made significant and feasible plans and actions.

Germany is a world leader in many industrial sectors, including vehicle manufacturing, chemicals, and pharmaceuticals. Some of these industries are facing energy stress currently due to conflict in the region. The government is subsidizing the decarbonization of these industries and green hydrogen is seen as a priority. Companies such as Siemens AG have the target to become net zero by 2030, and it could be the first major industry company to achieve that. The company is pursuing to have 100% electric vehicles in its fleet and produce 77% of its electricity from renewables, including wind energy. Siemens ensures transparency and accountability in its sustainability journey by consistently updating stakeholders through detailed annual reports.[7]

China, as the world leader in the production of solar modules, wind turbines and electric vehicles, is strongly investing in being net-zero by 2060, despite its heavy reliance on coal for energy production. The government has in place strong policies to explore carbon market benefits and to support industries to decarbonize their processes through massive renewable energy adoption.[8]

Corporations like Contemporary Amperex Technology Co. Limited (CATL) have announced an intention to develop groundbreaking technologies that could reduce the cost of EVs drastically, improving the reliability of electric grids.[9] There are several other companies looking into net-zero strategies; to highlight the company Tencent, one of the world’s largest data center operators, in addition to several other commitments, the company is committed to promoting climate advocacy by rolling out educational mini-programs on WeChat and free mobile games and also promised to share its knowledge on low-carbon solutions with business partners and support the development of cutting-edge technologies that protect the planet.[10]

No matter which stage of net zero a company is on the journey toward, a solid foundation and reflection on others’ experiences will be helpful to get motivated and drive positive actions. For each presented case, ambitions, actions, policies, challenges, and achievements are clarified while keeping an eye on improvement and development. Without requiring the exact same pathway, year, and model to succeed, these cases are expected to be a compass for manufacturing industries around the world. And most importantly, it is a wake-up call for industries, investors, governments, consumers, and people to start or speed up this journey.

It is the moment when it comes to time for radical and exponential changes to industries to make them compatible with the livability of the Earth. The status of the lowest human needs, including clean air, timely food, and safe housing and relationships, is directly associated with the planet Earth, where every human being lives.

Everything a person needs to thrive and relate to each other socially relies on a functioning and thriving planet. The business-as-usual method and the planet cannot co-exist and the self-destruction of the latter leads to the same fate for human health, products, and relationships.[11]  This is already shown dramatically by the COVID-19 virus, the most destructive and pressing health threat of the century.

3.2. Potential for Implementation in Developing Nations

One significant challenge in attaining global sustainability is implementing net-zero strategies in the manufacturing sectors of developing nations due to social, economic, and technological barriers. There are, however, innovative methodologies, practices, and technologies that can be tailored and contributed to the specific circumstances of developing nations to enable them to act for prosperity. Technological innovation of energy-efficient machinery and talents is an inevitable phenomenon.

Technologies were transferred pursuant to the successful experience of countries such as India and Brazil. India, like developed nations, is aiming to achieve carbon neutrality by 2070. It is a huge challenge considering the country’s reliance on fossil fuels to run the industries. The government has in place strategic frameworks and policies to guide the country’s transition to a cleaner future. The country aims to achieve 500 GW of installed renewable energy capacity by 2030. In addition to decarbonizing heavy industries, India aims to be one of the world leaders in green hydrogen production for use in the iron and steel industry as well as to trade. Carbon trading is also seen as a potential to leverage investment into the country’s economy.[12]

The green industrialization in India, led by the government with strategic involvement, opened doors as well to private sector involvement. Companies like Sterlite Technologies (STL) with innovative manufacturing principles implemented on the optical fiber cable plant, which reduced 99% of landfill disposal waste.

Focusing now on Brazil as the host of COP30 with ambitious targets to decarbonize the economy and looking to further exploit fossil fuel reservoirs, it can be considered a contradiction on a global scale. Nevertheless, companies are committed to achieving net zero emissions, which was strengthened in 2003 by the formation of O Pacto Global – Rede Brasil, bringing together 1,900 participants from all over the world and with a strong presence of Brazilian companies.[13] This network can serve as a means for global interactions amongst company leaders in the industrial energy transition through knowledge-sharing commitments and the development of knowledge products to disseminate innovative technologies.

Due to simultaneously escalating unit prices of essential resources (minerals, civil fuels), trends prompt promotional cost-effective energy conservation strategies side by side with technological investment.[14]Generally, they can be easily aligned to existing economic and political circumstances, endowing the industry to act advantageously on leverage-favorable capitals.

Environmental discharge abatements have long been on government agendas due to promotional reasons.[15] Different environmental problems in developed and less developed countries imply similar environmental abatement strategies automatically cannot be adopted. Generally, for given environmental objectives, there exist different sets of advantageous apparatus/equipment/material/infrastructures that can lead to the needful reduction in pollution discharge of manufacturing plants.

4. Challenges and Opportunities in Adopting Net-Zero Practices in Developing Nations

This section explores the challenges and opportunities faced by developing nations in embracing net-zero industrialization. By focusing on the perspectives of local stakeholders, the intention is to create “new spaces for sustainability” in narratives of industrial futures that have largely been dominated by high-income countries. Having some of the highest growth rates in energy demand and usage, the Industrial Revolution of the 21st century has become a critical test of the United Nations’ pledge to “climate-proof” future industrialization.

However, the challenge of decarbonizing industrialization is not met with equal efforts by the international community. Ensemble modeling of late-industrializing countries’ industrial futures claims that the observed decoupling of industrialization from greenhouse gas emissions in upper-middle-income countries will fail after 2035. The analysis argues that, even when aggressive technological improvements are realized, the modern sectors of future low-to-middle-income nations will stay carbon-intensive and lock into maladapted developmental pathways. Balancing this, it is argued that these efforts could impact the development of the North-South industrialization divide and open new strategies and spaces for decarbonized industrialization in these countries.

5. Conclusion and Future Directions

In the post-pandemic climate change era, the global climate is a significant issue for human beings. Climate change due to increased greenhouse gas emissions intensifies the consistency of natural disasters, causing a decline in the number of communities and the extinction of some living creatures. Net zero is regarded as an innovative solution to overcome these climate challenges. As industries make up much of the greenhouse gas emissions, net-zero industries become an important issue in responding to the net-zero challenge. Therefore, it is important for the industries to realize net-zero industries.

By gathering information on related topics and connecting it with emerging issues in the world, readers will have a comprehensive platform to learn about net-zero industries and consider potential solutions. It can also contribute to the global fight against overcoming climate challenges, especially in dealing with the net-zero transition.

Climate change is one of the most critical challenges facing human civilization. As global industries significantly rely on fossil fuels, a substantial percentage of greenhouse gas emissions have been generated from industries in recent years. For the past few years, the inconsiderable natural events that have occurred all over the world have increased due to the high consistency of greenhouse gas emissions, and the rise of global industries has deteriorated.

It is essential to understand net-zero industries and global CO2 emissions before the abrupt transition takes place. In this context, this paper reviews the related research and analyzes the emerging issue through a connection with the current situation in the world, thereby creating a comprehensive overview of net-zero industries. Crisis-based differences and potential challenges in industries were identified and examined according to co-occurrence keywords.

Manufacturers and their stakeholders could grasp the trend more effectively from these results. Besides, by considering the responses provided under the identified categories, a roadmap for the global growth of net-zero industries will be prepared. It was emphasized that case studies were considered necessary to achieve this goal. The response to the observed crisis is described in depth through multiple case studies, and practical solutions were offered under various categories. This is the basis for several review papers and some of the project reports.

It can provide a solid platform for industrialists and stakeholders to respond to global net-zero emergencies, thereby contributing to the fight against climate challenges and the global net-zero transition. Moreover, it was considered that this could make a significant contribution to academia, which has only just started to deal with the concept of net-zero industries.

[1] Rohit Agrawal, Pragati Priyadarshinee, Anil Kumar, Sunil Luthra, Jose Arturo Garza-Reyes, and Sneha Kadyan, “Are emerging technologies unlocking the potential of sustainable practices in the context of a net-zero economy? An analysis of driving forces,” Environmental Science and Pollution Research (2023), ncbi.nlm.nih.gov.

[2] “Emission Scopes Explained,” Pathzero, March 23, 2021, https://www.pathzero.com/blog/emissions-scopes-explained, accessed March 7, 2025.

[3] P. Nagovnak, C. Schützenhofer, M. Rahnama Mobarakeh, R. Cvetkovska, S. Stortecky, A. Hainoun, V. Alton, T. Kienberger, “Assessment of technology-based options for climate neutrality in Austrian manufacturing industry,” Heliyon 10, no. 3 (2024), ncbi.nlm.nih.gov.

[4] Agrawal, Priyadarshinee et al., “Are emerging technologies unlocking the potential of sustainable practices in the context of a net-zero economy? An analysis of driving forces.”

[5] Nagovnak, Schützenhofer et al., “Assessment of technology-based options for climate neutrality in Austrian manufacturing industry.”

[6] Agrawal, Priyadarshinee et al., “ Are emerging technologies unlocking the potential of sustainable practices in the context of a net-zero economy? An analysis of driving forces.”

[7] “Leading German companies: their carbon footprints and reporting practices,” DGB Group, July 5, 2024, https://www.green.earth/blog/leading-german-companies-their-carbon-footprints-and-reporting-practices., accessed March 3, 2025.

[8]  Su Meng (Molly),  Suodi Xi  and Jinyu Xiao, “NAVIGATING NET ZERO: APAC CLIMATE GUIDE – CHINA,” King & Wood Mallesons, December 11, 2024, https://www.kwm.com/global/en/insights/latest-thinking/navigating-net-zero-apac-climate-guide-china.html., accessed March 8, 2025.

[9] Jenny Feng, “Tencent pledges to achieve carbon neutrality by 2030,” The China Project, March 1, 2022, https://thechinaproject.com/2022/03/01/tencent-pledges-to-achieve-carbon-neutrality-by-2030., accessed March 8, 2025.

[10] “China’s CATL pushes beyond batteries into power grids, EV platforms,” Reuters, November 13, 2024, https://www.reuters.com/business/autos-transportation/chinese-giant-catl-pushes-beyond-batteries-into-power-grids-ev-platforms-2024-11-13/., accessed March 8, 2025.

[11] Lin Chen, Goodluck Msigwa, Mingyu Yang, Ahmed I Osman, Samer Fawzy, David W Rooney, and Pow-Seng Yap, “Strategies to achieve a carbon neutral society: a review,” Environmental Chemistry Letters 20 (2022), ncbi.nlm.nih.gov.

[12] “How green manufacturing is reshaping India’s industrial landscape,” EY Parthenon, February 2025,  https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/energy-resources/ey-how-green-manufacturing-is-reshaping-india-s-industrial-landscape.pdf.

[13] “CFO COALITION PARA OS ODS,” Pacto Global Rede Brasil, https://www.pactoglobal.org.br/cfo-coalition-para-os-ods/.

[14] Chen, Msigwa et al., “Strategies to achieve a carbon neutral society: a review.”

[15] Masachika Suzuki, “Finding the social, economic and technological barriers and opportunities in the developing countries for designing the technology transfer and innovation regime in climate change,” Refubium – Freie Universität Berlin, 2010, https://refubium.fu-berlin.de/bitstream/handle/fub188/19302/Suzuki-Finding_the_social_economic_and_technological_barriers_and_opportunities-238.pdf?sequence=1&isAllowed=y.