Light Industry
What is light industry?
Light industry refers to a diverse range of industrial sub-sectors in areas like food processing, textiles, consumer goods, vehicles and machinery which have less demanding energy needs than heavy industries such as steelmaking and chemicals.
What is the role of light industry in clean energy transitions?
Compared to heavier industries, emissions reductions in light industry are easier to achieve with existing, proven technologies because they do not generally require high-temperature heat or fossil fuel feedstocks. However, deploying these technologies at scale is more complex since these industries are spread over more sites and companies, while heavy industry tends to be concentrated in fewer, larger facilities.
Where do we need to go?
Accelerated deployment of low-emissions heating technologies and energy efficiency measures will be needed to put light industry on track with the Net Zero Emissions by 2050 Scenario.
Tracking Light Industry
Light industry describes a range of sectors with lower absolute energy use than heavy industry such as steel and cement. This wide-ranging sector accounts for 8% of all industrial emissions. Key components of light industry include the production of food (30% of light-industry emissions), machinery (16%), textiles (7%), vehicles (6%) and timber (3%), as well as construction (21%) and mining (18%).
Emissions from light industry are generally easier to abate from a technological point of view than heavier industry due to lower temperature requirements. Conversely, these sectors are spread over many more manufacturing sites and companies than heavy industry, adding to the complexity of deploying clean technologies at scale.
Considerable progress has been made in lowering emissions over the past decade, including deployment of low-emission heating technologies, such as industrial heat pumps, and energy efficiency measures. However, these changes are not yet occurring fast enough. Efforts must accelerate to get on track with the Net Zero Emissions by 2050 (NZE) Scenario, under which emissions decline by 6% per year to 2030, compared to 1.6% on average over the past decade.
Important investment programmes are being deployed to push energy efficiency and decarbonisation in light industries
Important investment programmes are being deployed to push energy efficiency and decarbonisation in light industries
Countries and regions making notable progress in decarbonising light industry include:
- The European Union launched a strong push on the transition for the industry sector through the release of its Green Deal Industrial Plan in February 2023, with a particular focus on energy efficiency, including in industry, and investments favouring heat pump deployment.
- The United States announced important new funding in 2022 under the Inflation Reduction Act, which is expected to substantially boost investments for energy efficiency in industries.
- New Zealand banned in 2021 the installation of new low- and medium-temperature coal boilers to encourage cleaner alternatives for industries.
While light-industry emissions have declined since 2010, a more rapid decline is needed to get on track with the NZE Scenario
While light-industry emissions have declined since 2010, a more rapid decline is needed to get on track with the NZE Scenario
CO2 emissions from light industry by region in the Net Zero Scenario, 2000-2030
OpenEmissions from light industry rose in the early 2000s due to growth in output, especially in China. Between 2010 and 2020 emissions declined by about 1.8% per year on average, while total output continued to grow. This was attributable to improvements in energy efficiency, particularly from the adoption of best available technologies in China, as well as producers moving towards electrification. However, in 2021, emissions rose by more than 2% due to an increase in activity across several light industries but went back to their 2020 level the following year.
Progress is not at the rate needed to be in step with the NZE Scenario – emission reductions must accelerate to about 6% per year on average to 2030 to get on track.
The share of fossil fuel use is declining, but progress needs to accelerate
The share of fossil fuel use is declining, but progress needs to accelerate
Light industry final energy use by source in the Net Zero Scenario, 2000-2030
OpenEnergy is used for a wide array of purposes in light industry, and its application varies widely according to the sector in question. Overall, the largest consumer of energy in light industry is process heat for applications such as drying, metal melting and food preparation. The majority of the fossil fuels used in light industry are for generating process heat, while electricity is used primarily to power motor-driven systems as well for process heat, cooling and lighting.
Fossil fuels made up 38% of the final energy used in light industry in 2022. Their share is on the decline – in 2005 they accounted for about 52% of final energy use. The main contributor to this decline is electricity, which grew as a proportion of total final energy by about 2% per year between 2010 and 2022. More than 70% of the additional energy used in 2021 compared to the previous year was electricity, showing that electrification continued even in a year where emissions increased.
In the NZE Scenario, the share of electricity increases at an even faster rate – about 3% per year – to make up around 55% of energy consumption by 2030, alongside continued growth in bioenergy use, and a very large proportional (but relatively small absolute) increase in the use of emerging near zero technologies like solar thermal, geothermal energy and hydrogen. The result is that fossil fuel use declines to less than a quarter of total energy in 2030.
Firms should prioritise technologies for low-emission process heat and increased energy efficiency
Firms should prioritise technologies for low-emission process heat and increased energy efficiency
Unlike in many other industries, most of the technologies needed for net zero emissions in light industry are already on the market. Since more than 90% of total heat demand is low or medium temperature (below 400 °C), there is wide scope for electrification.
Heat pump units – which commonly run on electricity – able to provide heat above 100 °C are now entering the market, with some reaching 200 °C. The NZE Scenario sees them supplying about 7% of light-industry heat by 2030.
Many other forms of electric heating exist, such as electric boilers and induction heaters. Hydrogen produced from electrolysis could also be used as an indirect form of electric heating; however, since the cost is expected to stay higher than direct electrification, it is most suited for higher temperatures for which direct electrification is not available. In the NZE Scenario, 40% of the heat required is provided directly or indirectly by electricity by 2030, compared with 24% today.
Additional low-emission heat can be provided using biomass or by recovering the waste heat from other nearby industries, or – where the geography allows – through solar water heaters, concentrating solar thermal systems or geothermal heat.
On the mechanical energy front, good progress is being made on electric motors, as global production is increasingly reliant on more efficient models. For instance, EU regulations state that 750 W 4-pole IE2 class motors must have an efficiency of 79%, while similar-sized IE4 class motors must have an efficiency above 85%. In the NZE Scenario, 90% of global motor sales in light industry are IE3 class or above by 2030. For comparison, about three-quarters of industrial motors are IE2 class or below today.
Beyond the heating and motor technologies mentioned above, many other technologies can help reduce light industry’s emissions and energy consumption, such as LEDs, process controls and efficient pumps. Energy savings need to be made across the board.
Innovation is less pressing than for heavy industry, but will still pay off
Innovation is less pressing than for heavy industry, but will still pay off
In contrast to in heavy industry, most of the technologies required for deep emission reductions in light industry are already on the market, making innovation less critical. That does not mean that it is unimportant, however, as a large number of technologies still have relatively low market penetration, especially in near zero-emission heat generation.
Investment in technology such as heat pumps and alternative process heat production (e.g. radio frequency heating, electromagnetic heating and infrared heating) – either through direct funding of development or through policies to increase uptake – can help to reduce costs through innovation and thus increase the rate of deployment.
For more information
Near zero-emission electricity and hydrogen infrastructure must be deployed for deep decarbonisation of light industry
Near zero-emission electricity and hydrogen infrastructure must be deployed for deep decarbonisation of light industry
Electrification can only succeed in significantly reducing emissions if it comes from near zero-emission sources. Policy makers must therefore ensure that the necessary investment in, planning for, and deployment of production capacity and distribution systems for clean electricity and hydrogen takes place. Industrial clusters and infrastructure build-out would also help maximise opportunities for use of waste heat from neighbouring industrial facilities. An important part of this will be implementing stringent economy-wide emission policies that incentivise decarbonisation at every level.
Many countries are incentivising energy efficiency gains in their industrial sectors
Many countries are incentivising energy efficiency gains in their industrial sectors
Solutions to improve energy efficiency, such as industrial heat pumps, are important to decarbonise light industries, but deployment is slowed down by the upfront cost and information barriers. Several countries have introduced policies to remedy these problems, for example:
- In Germany, subsidies in the federal funding programme for energy and resource efficiency in commercial enterprises can cover up to 55% of the initial cost of the heat pump, up to a ceiling of EUR 15 million per project.
- Other European countries have implemented similar schemes, such as Denmark, where grants launched in 2022 cover up to 50% of the cost of an energy saving project, such as better lighting solutions or energy optimisation of process plants.
- In Brazil, the PotencializEE programme, adopted in 2022, offers training for industrial energy efficiency experts to help facilities identify clean and efficient technologies.
- In Chile, the first Energy Efficiency and Emissions Reduction Network was launched in 2021 to bring together 14 mining companies of all sizes to combine their experience and improve the energy efficiency, productivity and sustainability of their sector.
- The government of Korea announced in 2019 the creation of a national heat map covering the waste heat from industrial facilities, incinerators, power plants, etc. This map will facilitate the reuse of waste heat and allow for energy efficiency gains.
- In 2000, about 5% of industrial motors globally were covered by Minimum Energy Performance Standards (MEPS) regulations imposing a minimum efficiency standard. This jumped to 17% in 2010 and 53% in 2022, with 62 countries having MEPS for electric motors.
Recommendations
-
As with industry overall, the decarbonisation of light industries will require multiple measures, including:
- Adopting mandatory CO2 policies covering industry – this might include carbon pricing or regulation of emissions.
- Managing existing assets and near-term investment in order to create a smooth energy transition – using policy to ensure new investments incorporate near zero-emission technologies wherever possible.
- Maximising energy productivity by accelerating progress in energy efficiency. Deployment of best available technologies can facilitate this and policy makers can incentivise it.
- Improving energy and production data collection tracking and classification systems. Industry participation and government co‑ordination are both important here.
-
Light industry comprises companies of varied size, from large automakers to small businesses, compared to heavy industry, where players typically operate on a large scale. Small companies do not always have the financial resources for dedicated energy managers or to make large upfront capital investment in lower-emission technologies. Providing access to free or subsidised efficiency audits, technical support, training, technology demonstration, rebates, low-interest loans and other incentives are important initiatives to help smaller companies reduce their carbon footprint.
-
Although supply chain emissions are not part of light industry’s direct emissions, this is still an area where they have substantial power to abate CO2 emissions.
As light-industry actors, such as vehicle manufacturers, are often major consumers of heavy industrial goods, participation in initiatives for near zero-emission procurement – such as the First Mover Coalition – is a great way to incentivise lower emissions. Additionally, material efficiency measures – such as minimising scrap production during product manufacturing and producing lightweight products – can help reduce upstream emissions.
Efforts can also be taken in other areas of supply chain management, such as using low-emission means of transport.
Taking these actions sooner rather than later can help forward-looking firms avoid increases in emission prices before they happen.
Lead authors
Alexandre Gouy
Contributors
Emma Mooney
Fabian Voswinkel