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The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

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The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

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The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

More pathways

Book a demo

Ready to get started?

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Sustainability Unlocked to your current platform

Featured Content

More featured content

The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

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Transition Bonds to Decarbonise Hard-to-Abate Sectors

Transition Bonds to Decarbonise Hard-to-Abate Sectors

Matthew MacGeoch

In this video, Matthew explores the challenges of decarbonising hard-to-abate sectors like steel, cement, and chemicals. He explains why these industries face unique barriers to reducing emissions and how transition finance plays a critical role in funding their shift to low-carbon technologies.

In this video, Matthew explores the challenges of decarbonising hard-to-abate sectors like steel, cement, and chemicals. He explains why these industries face unique barriers to reducing emissions and how transition finance plays a critical role in funding their shift to low-carbon technologies.

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Transition Bonds to Decarbonise Hard-to-Abate Sectors

4 mins 44 secs

Key learning objectives:

  • Understand what makes a sector hard-to-abate and why these industries are critical to net zero

  • Recognise the role of transition finance and green bonds in financing heavy industry decarbonisation

  • Assess how Climate Bonds Initiative’s criteria ensures credibility in financing decarbonisation

Overview:

Decarbonising hard-to-abate sectors like steel, cement, and chemicals is essential but challenging due to high capital costs and long asset lifetimes. Transition finance is crucial in funding these industries, alongside evolving regulatory guidance and policy support. Innovative solutions, such as electric arc furnaces and sustainable debt markets, help drive emissions reductions. Clear transition plans and credible financing frameworks ensure investor confidence and accelerate progress towards net zero, making these industries more resilient while supporting global climate goals.

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Summary
What are hard-to-abate sectors, and why are they difficult to decarbonise?

Hard-to-abate sectors include steel, cement, chemicals, aviation, and shipping, which face significant technological, financial, and operational barriers to decarbonisation. These industries rely on high-temperature processes, fossil fuel feedstocks, and long investment cycles, making it difficult to switch to low-carbon alternatives without major capital expenditure. Unlike sectors that can transition by simply adopting renewable energy, hard-to-abate industries require fundamental shifts in production methods, infrastructure, and supply chains.

For example, the cement industry emits CO₂ not only from energy use but also through chemical reactions in clinker production, making emissions reduction particularly complex. Similarly, steel production relies on coal-based blast furnaces, which have lifetimes spanning decades, limiting the pace at which new, cleaner technologies can be deployed. Overcoming these challenges requires long-term investment, technological innovation, and financial incentives to make decarbonisation economically viable.

How does transition finance support decarbonisation in hard-to-abate sectors?

Transition finance helps high-emission industries like steel, cement, and chemicals secure capital for low-carbon technologies. Unlike traditional green finance, which funds already sustainable projects, transition finance supports sectors that need major operational shifts to reach net zero.

Historically, heavy industries were seen as too risky for sustainable finance, but regulatory developments and investor demand are changing that. In 2024, steelmaker POSCO issued a $500 million green bond to fund electric arc furnaces and blast furnace upgrades, aligned with Climate Bonds Initiative’s criteria.

To reinforce credibility, organisations like Climate Bonds Initiative set sector-specific standards, ensuring funding supports genuine decarbonisation. Policy support is also key to attracting private investment and accelerating the transition.

What role does Climate Bonds Initiative play in ensuring credible financing?

The Climate Bonds Initiative develops certification criteria for green bonds, ensuring investments align with real emissions reductions. It provides technical assistance, market monitoring, and credibility standards, helping capital flow to projects that truly support decarbonisation.

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Matthew MacGeoch

Matthew MacGeoch

Matthew MacGeoch is a Senior Research Analyst at Climate Bonds' Research Team, specialising in transition plans, transition finance, and hard-to-abate sectors. He has led the development of Climate Bonds' SLB dataset and methodology, and has since developed their transition plan monitor. He has experience from the UN Department for Economic and Social Affairs, the Oxford Institute for Sustainable Development, and the Oxford Silk Road Society Think tank. He has also worked at the Afghanistan and Central Asian Association and Lafiya Nigeria, focusing on social issues.

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