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Digital Transformation 21 Jul 2026 · 8 min read

Decarbonisation for industry: concrete levers for heavy industry

SXE Consulting
Xavier Schuster · SXE Consulting Consultant
  • The Decarbonisation for industry rests on four families of levers: energy efficiency, electrification, low-carbon energy vectors (hydrogen, biomass) and CO₂ capture/storage.
  • Steelmaking, cement, chemicals and the manufacture of non-metallic minerals account for more than 72 % of the emissions of French manufacturing industry.
  • Theefficacité énergétique remains the quickest lever to activate, with a return on investment often under 3 years.
  • Concrete projects already exist: an electric furnace at ArcelorMittal in Dunkirk, hydrogen in cement production at Holcim, activated clays to reduce the carbon footprint of cement.
  • 5.6 billion euros are being mobilised via France 2030 to support this transition, across all sectors.

Why decarbonisation for heavy industry is an urgent issue

Manufacturing industry and construction account for a disproportionate share of French greenhouse gas emissions. According to the government's sector roadmaps, more than 72 % of industrial emissions proviennent de trois familles d'activités : la métallurgie, la chimie et la fabrication de minéraux non métalliques (ciment, chaux, verre). Les objectifs de réduction fixés à horizon 2030 (par rapport à 2015) sont ambitieux et différenciés par secteur :
  • Chemicals : -26 %
  • Cement : -24 %
  • Metallurgy : -31 %
The overall target for 2050 is a reduction of 80 % of the emissions of heavy industry. To achieve this, the national strategy combines three families of levers: continuous progress (around 40 % of the way), technological breakthrough (40 %) and sufficiency (20 %). What this means in concrete terms for an industrial site: no single lever is enough. Decarbonisation is built like a portfolio of actions, prioritised by cost and by implementation time.

The four decarbonisation levers, sector by sector

1. Energy efficiency: the quickest lever

It is often the first project to activate, as its return on investment is generally under 3 years:
  • Recovery of waste heat from furnaces and thermal processes.
  • Optimisation of utilities (compressed air, steam, cooling networks).
  • Improvement of the thermal insulation of industrial equipment and buildings.

2. Electrification of processes

Recognised as the leading decarbonisation lever at national level, with a reduction target of 8 Mt of CO₂ for French industry by 2030:
  • Steelmaking : replacing coal-fired blast furnaces with electric arc furnaces (EAF).
  • Chemicals and industrial processes : electrification of boilers and thermal processes where the technology allows.

3. Low-carbon energy vectors: hydrogen and biomass

  • Renewable hydrogen : used for direct reduction of iron ore (steelmaking) or as a fuel in cement plants.
  • Biomass and alternative fuels : industrial waste, agricultural residues and used tyres as substitutes for fossil fuel in cement kilns.
  • A new public instrument dedicated to hydrogen is set to mobilise 4 billion euros over three waves of calls for tenders, with an auction mechanism.

4. Carbon capture, storage and utilisation (CCS/CCU)

A breakthrough technology, reserved for sites whose emissions are the hardest to reduce by other means (cement, heavy chemicals), with pilot projects already under way in France.

Concrete cases across sectors: what is already being done

Steelmaking: ArcelorMittal Dunkirk

The electric furnace (EAF) project combined with a direct reduced iron (DRI) unit represents a total investment of 1.8 billion euros, supported to the tune of 850 million euros by ADEME. The objective: to produce steel with three times less CO₂ per tonne than the traditional blast furnace route, and to reduce the group's CO₂ emissions in France by 35 % by 2030.

Cement: Holcim and hydrogen

À La Malle (Bouches-du-Rhône), Holcim a mis en œuvre en 2023 une première mondiale : l'utilisation d'hydrogène pour se passer complètement de combustibles fossiles sur une ligne de cuisson. Sur d'autres sites, le taux de substitution thermique par des combustibles alternatifs (biomasse, déchets) dépasse déjà 90 %, avec un objectif de 100 % à horizon 2050. Autre levier : les activated clays, used at Saint-Pierre-la-Cour (Mayenne), which reduce the carbon weight of cements by around 30 %, combined with a CO₂ capture project (Capt4Climate) aiming to avoid 900,000 tonnes of CO₂ per year.

Chemicals: hydrogen and chemical recycling

The sector roadmaps identify hydrogen produced by electrolysis and chemical recycling as the two major technological breakthrough levers for reducing the carbon footprint of heavy chemical processes.

Food industry: energy efficiency and biomass

Less emissions-intensive than steel or cement, the food industry mainly draws on energy efficiency (heat recovery from cooking, drying and pasteurisation processes) and local biomass for its industrial heat needs. What these cases have in common: each site first activated the low-cost, high-ROI levers (energy efficiency) before investing in more capital-intensive breakthrough technologies (hydrogen, CCS).

The circular economy as a decarbonisation lever

The circular economy is not a subject separate from decarbonisation: it is an integral part of it, reducing demand for virgin raw materials, which are themselves energy-intensive to produce.
  • Steel recycling : the electric route, fed with recycled scrap, emits significantly less CO₂ than the blast furnace route using virgin ore.
  • Substitute fuels in cement production : recovering industrial waste or biomass in place of a fossil fuel.
  • Ecodesign : reducing the quantities of raw material needed per product manufactured, without compromising performance.

Financing decarbonisation for industry in France

The France 2030 plan devotes 5.6 billion euros to the decarbonisation of industry, divided into three envelopes:
  • 4 billion euros for the deep decarbonisation of the highest-emitting sites (steel, heavy chemicals, cement).
  • 1 billion euros for mature solutions: energy efficiency, low-carbon heat production.
  • 600 million euros for innovation and breakthrough technologies.
For SMEs, the DECARB-FLASH scheme specifically targets rapid decarbonisation projects, with investment amounts between €100,000 and 3 million euros.

Where to start a decarbonisation project for industry?

  1. Carry out an energy and carbon assessment of the site to prioritise emission sources.
  2. Prioritise the levers whose ROI rapide (energy efficiency, heat recovery) before breakthrough investments.
  3. Examine the available financing schemes (France 2030, DECARB-FLASH, regional aid) according to the sector and size of the company.
  4. Sequence the investments over several years rather than aiming for total immediate transformation.
  5. Measure and document the results to adjust the trajectory and meet customers' growing requirements on carbon footprint.

FAQ - Industrial decarbonisation

Which sectors are most affected by industrial decarbonisation? Steel, cement and chemicals account for more than 72 % of the emissions of French manufacturing industry, but all sectors, including the food industry, face growing regulatory obligations. What is the most cost-effective decarbonisation lever in the short term? Energy efficiency, with a return on investment generally under 3 years, ahead of more capital-intensive levers such as hydrogen or carbon capture. Is industrial decarbonisation financed by the French state in 2026? Yes, notably via France 2030 (5.6 billion euros dedicated), the DECARB-FLASH scheme for rapid projects, and the green industry tax credit (C3IV) for certain sectors. How long does an industrial decarbonisation project take? Energy efficiency projects can deliver results within a few months. Technological breakthrough projects (electric furnace, hydrogen) are rolled out over several years, like the ArcelorMittal Dunkirk project planned for 2029. Does the circular economy really reduce industrial emissions? Yes: recycling steel via the electric route or substituting fossil fuels with recovered waste directly reduces demand for energy and virgin raw materials, two major sources of emissions.

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Author

Xavier Schuster

Consultant at SXE Consulting. Industrial consulting firm based in Luxembourg, 25 years of experience in operational excellence.

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