Germany and UNIDO drive decarbonization with Partnership for Net Zero Industry and Global Matchmaking Platform as part of the Climate Club

The Partnership for Net Zero Industry and the Global Matchmaking Platform were signed at the United Nations Climate Change Conference (COP28). Germany has committed to provide EUR 23 million in seed funding for the two initiatives via its International Climate Initiative (IKI).

Both initiatives are part of the new Climate Club, officially launched at COP28 by German Chancellor Olaf Scholz. One essential focus of the Climate Club is the decarbonization of heavy-emitting industries like steel, cement and concrete as these sectors will be critical to achieve net-zero by 2050. Globally, these sectors need to reduce their emissions by 90% by 2050 to meet climate goals.

The Global Matchmaking Platform will be the Climate Club's central platform for cooperation with developing countries. It will support developing countries in moving forward with industrial decarbonization agenda by facilitating the alignment, coordination and matchmaking of existing international technical and financial assistance offers and private finance instruments to the needs and priorities of emerging markets and developing economies. UNIDO will act as the platform’s secretariat.

The Partnership for Net Zero Industry will support developing countries in their efforts to decarbonize heavy-emitting sectors, like steel and cement, with technical assistance. It will initially provide support to five countries. Efforts are underway to bring more donors and philanthropies on board to extend this support to more countries.

Gerd Müller, UNIDO Director General, said: “Industrialized countries have a responsibility to assist with the decarbonisation of heavy industries around the world. The Global South must have access to low-carbon technologies. They are least responsible for climate change, but they suffer most from the effects. I congratulate Germany for leading the way. With our new Partnership for Net Zero Industry and Matchmaking Platform, we will help developing countries to access both funding, as well as technical support, to enable their climate-friendly industrial development. Together we bring knowledge and new technologies for sustainable industry and decarbonization from industrialized to developing countries. I call on public and private donors to join us. “

Robert Habeck, Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, said: “The transformation to net zero societies will only be possible and economically viable if we are able to develop competitive solutions for net-zero industrial processes. German companies have understood that economic success will only be sustainable with ambitious strategies to decarbonize production processes. To enhance global industrial decarbonization, Germany has driven forward the establishment of the Climate Club and is ready to be a strong partner, especially for developing and emerging countries, in the transformation of global industries towards climate neutrality. Together with UNIDO, GERMANY has today launched the Global Matchmaking Platform of the Climate Club and the Partnership for Net Zero Industry. We are delighted to have UNIDO on board as an established and well-connected partner.”