Steel, cement, chemicals, aviation, and shipping are often called hard-to-abate because cutting their emissions is technically difficult. But a new analysis argues these sectors are becoming the core of a new industrial order, where control over technology, capital, and infrastructure will determine global competitiveness. The article outlines how companies and governments can turn transition pressure into market power rather than treating it as a compliance cost. The key takeaway is that decarbonization is no longer just an environmental issue. It is now a strategic question about who captures the economic value created by cleaner production. For businesses, the focus should be on preserving flexibility and optionality, not betting everything on one technology. For governments, the role is to design markets and infrastructure that reduce first-mover risks, while avoiding permanent subsidies or protectionism. The article also highlights the need for more research on transition rents, or how value gets redistributed during industrial shifts.
