Context: As many as 33 industrial clusters from 16 countries have pledged to economic growth, job creation, and emission cuts under the World Economic Forum's Transitioning Industrial Clusters Initiative. 

• Comprising 33 clusters worldwide, including five from India, the initiative aims to reduce emissions by 832 million tonnes, contribute $492 billion to GDP, and support 4.3 million jobs.

• These include Gopalpur Industrial Park, Kakinada Cluster, Kerala Green Hydrogen Valley, Mundra Cluster & Mumbai Green Hydrogen Cluster.

• Industrial clusters are geographically concentrated areas or hubs where interconnected industries, companies and institutions collaborate to drive economic growth.

•  A report released by WEF showcases the role of industrial clusters in providing economies of scale, shared risk & demand optimisation. Moreover, they offer unique benefits driven by local context, location and makeup of its members.

Challenges inhibiting Clean Energy Infrastructure Development

• Green premium issue: E.g: Green ammonia production costs are nearly three times the average cost of production via fossil fuels in 2023.

• Fragmentation of standards, certifications and policies for clean fuels: E.g: There are 34 certification schemes for hydrogen and its derivatives (e.g. ammonia) globally.

• Others: Lack of strong demand, Gaps in governance, data protocols and controls 

Report

• A report titled “Unleashing the Full Potential of Industrial Clusters – Infrastructure Solutions for Clean Energies” was developed with Accenture and EPRI. 

• It outlines strategies for scaling clean energy production and emphasises the importance of digital innovation and port-based ecosystems in supporting the energy transition.

Collaboration and Technology

• Experts stress the need for collaboration among businesses and public institutions. The adoption of digital technologies is deemed essential for accelerating the deployment of net-zero infrastructure. This collaborative approach is crucial for aligning stakeholders and securing funding for clean energy transitions.

Future Goals

• The initiative aims to create sustainable economies by encouraging partnerships and aligning regulatory strategies. By focusing on economic growth, job creation, and CO2 reductions, the initiative seeks to transition industrial clusters towards net-zero economies effectively.

Global Engagement

• The WEF’s Annual Meeting 2025 in Davos-Klosters serves as a platform for global leaders to discuss themes related to sustainable growth and partnerships. The gathering aims to explore collaborative efforts to safeguard the planet while rebuilding trust among stakeholders.