Pathways to Industrial Decarbonization in Central and Eastern Europe An analysis of Energy Intensive Industries in Austria, Poland, and Romania

Abstract

The decarbonization of energy-intensive industries (EIIs) stands as one of the most complex and urgent challenges in Europe’s transition toward climate neutrality. This thesis investigates the decarbonization pathways of three critical industrial sectors—iron and steel, pulp and paper, and chemicals—in three Central and Eastern European (CEE) countries: Austria, Poland, and Romania. These industries are the backbone of Europe’s economy but are simultaneously responsible for a significant share of greenhouse gas (GHG) emissions, owing to their reliance on high temperature processes, fossil fuel feedstocks, and energy-intensive production technologies. The research recognizes these industries require deeper, targeted transformations that encompass both technological innovation and policy alignment. The analysis begins by establishing a comprehensive profile of industrial emissions and energy use across the three sectors, mapping their production processes. The study further evaluates the European Union’s evolving regulatory landscape—most notably the European Green Deal, the EU Emissions Trading System (ETS), the Clean Industrial Deal (CID), and the Renewable Energy Directive III (RED III)—and their translation into national frameworks. By comparing EU and national policies, the thesis identifies both coherence and policy gaps that shape the industrial decarbonization. The technological readiness levels (TRLs) of decarbonization pathways, including electrification, carbon capture, utilization, and storage (CCUS), hydrogen, and renewable fuels of non-biological origin (RFNBOs), and biomass, are critically assessed. Methodologically, this thesis adopts a qualitative thematic approach supported by quantitative data, and integrates industrial performance, technological readiness, and policy coherence to evaluate alignment between technology and policies for the sectors. Findings reveal that while Austria demonstrates a comparatively stronger position due to supportive policies and advanced renewable energy penetration, both Poland and Romania face structural barriers. Recommendations focus on strengthening policy coherence, scaling up pilot projects into industrial practice, and fostering regional collaboration to achieve a competitive industrial transition.