Industrial activities create all the physical products (e. g., cars, agricultural equipment, fertilizers, textiles, etc.) whose use delivers the final services that satisfy current human needs. An absolute reduction in emissions from the industry sector will require deployment of a broad set of mitigation options beyond energy efficiency measures (medium evidence, high agreement). In the last two to three decades there has been continued improvement in energy and process efficiency in industry, driven by the relatively high share of energy costs. In addition to energy efficiency, other strategies such as emissions efficiency (including e. g., fuel and feedstock switching, carbon dioxide capture and storage (CCS)), material use efficiency (e. g., less scrap, new product design), recycling and re-use of materials and products, product service efficiency (e. g., car sharing, maintaining buildings for longer, longer life for products), or demand reductions (e. g., less mobility services, less product demand) are required in parallel.
Another important change in the world´s industrial output over the last decades has been the rise in the proportion of international trade. Manufactured products are not only traded, but the production process is increasingly broken down into tasks that are themselves outsourced and/or traded; i. e., production is becoming less vertically integrated. In addition to other drivers such as population growth, urbanization, and income increase, the rise in the proportion of trade has been driving production increase for certain countries. [Source]