Decarbonization of Slovak Industry by 2030 May Require Up to 1.98 Billion Euros

PEDAL Consulting s.r.o. has prepared a publication “Slovak Industry Decarbonisation: Policy and Financing Roadmap” as part of the v4decarb project (Decarbonization of the industrial sector: Sustainable finance as an opportunity?). It addresses the issue associated with estimating the capital expenditures (CAPEX) required for a successful reduction of carbon emissions by 2030 in three sectors – steel, cement, and chemical industry.

Slovakia’s largest employers are also among the biggest industrial carbon producers. The steel, cement, and chemical industries heavily rely on fossil fuels and energy-intensive processes, leading to significant carbon dioxide emissions. Addressing decarbonization in these sectors has, therefore, become a top priority of the European climate change program. However, it raises several questions:

What is the most suitable decarbonization model?
How much financing will the transition require?
Where can these investments be secured?

The analysis focuses on solutions related to the development of innovative technologies, adopting sustainable practices, and investing in research and development. The necessary expenditures associated with these efforts are aimed to be covered by available financing options from national and European sources (public or private). It works with three models that compare assumptions with the evaluation of the current reality. Based on these models, the estimated costs of transitioning these sectors to low-carbon or carbon-neutral alternatives will range from 1.59 to 1.98 billion euros.

Successful reduction of carbon emissions to the desired level by 2030 in these three selected sectors in Slovakia thus still remains an ambitious goal.

You can find the publication “Slovak Industry Decarbonisation: Policy and Financing Roadmap” on the v4decarb project’s website: