This chapter looks at the challenges for decarbonizing EU energy intensive industries. First the European EIIs are presented from the perspective of their greenhouse gas emissions and energy use. This is followed by a broad literature study on innovative technologies and mitigation techniques and other options to achieve carbon neutrality, their levels of technological readiness, capital intensity etc. The chapter then asks why it is so hard to abate emissions in this sector, listing general and specific barriers for their decarbonization. The final section addresses emerging EU policies for industrial transition, i.e. a new industrial strategy for the EU’s energy intensive industries beyond the EU ETS. This includes elements such as innovation instruments, financing capital expenditure for new technologies, dealing with higher operational expenditure that might make low CO2 products less competitive, the link with circular economy and reduction of materials intensity. Lastly, the authors discuss the prospects for transition under the European Green Deal in an international context.
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