Economy
20 industrial clusters from 10 countries commit two reach net zero
Three leading industrial clusters from China, France and the United States have joined the World Economic Forum’s Transitioning Industrial Clusters initiative, a network of 20 industrial clusters in 10 countries and four continents that have committed to reaching net zero. The Transitioning Industrial Clusters initiative is a World Economic Forum community, launched in collaboration with Accenture and EPRI, that aims to support industrial clusters on their paths to net zero. The initiative has grown rapidly since its inception in 2021 at COP26 and all 20 signatory clusters have pledged to improve their governance models and reduce their carbon footprints. This group now represents a combined potential for carbon dioxide-equivalent (CO₂e) emissions reduction of 626 million tonnes. This is equivalent to the annual emissions of a country like Australia. The signatory clusters make a direct contribution of $362 billion to gross domestic product and create or protect 3.4 million jobs. “As our initiative welcomes new clusters from China, France and the US, we are excited to see growing interest from the public sector stakeholders both at the national as well as local level,” said Roberto Bocca, Head of Energy, Materials and Infrastructure Centre, World Economic Forum. “The establishment of innovative private-public partnerships is key for the transformation of industrial regions, not only in terms of emissions reduction but also jobs retention and creation as well as economic development.”
A new edition of a World Economic Forum Transitioning Industrial Cluster Annual Report, launched on Thursday, shows how the decarbonisation of the industrial sector, which accounts for 30% of global CO₂ emissions, could be achieved, while spurring economic growth and job creation. While warning that “the world is in a race against time to decarbonise”, the new report highlights progress made on the net-zero vision and how these lessons can be applied to the broader industrial sector, a key carbon emitter globally. Using three signatory clusters as actionable case studies, the report charts a path across four key pillars – partnerships, policy, technology and finance. Financing, in particular, is a critical step to kick-start net-zero journeys and scale up impact, while creating jobs and spurring growth, as per the new findings. The report also highlights significant challenges to achieving net zero within the industrial sector, including policy framework gaps, the need to unlock financing to support deployment and scaling of new infrastructure and technologies, a lack of fit-for-purpose governance models, among others. The urgent need to continue to strengthen public-private partnerships and cross-border collaboration is critical to address these challenges, as per the report.
The initiative’s three new signatories, all port-anchored industrial clusters, are: Tianjin Economic and Technological Development Area (TEDA, China): TEDA includes major industries such as high-end manufacturing, information technology, new energy sources, chemical materials and healthcare. It has introduced a series of resource recycling projects for metals and industrial waste and is adopting electrification, solar PV, onshore wind and geothermal power to meet its energy needs. The cluster, which has received national recognition for sustainability initiatives, is also exploring carbon capture, usage and storage technology. TEDA had 16 million tonnes of CO₂ emissions in 2020 (Scope 1 & 2) and expects $90 billion of annual GDP contribution and 600,000 jobs created and maintained by 2060. “TEDA is committed to joining this initiative and actively participating in exchanges to learn from international, advanced industrial clusters,” said You Tiancheng, Chairman of TEDA Administrative Commission. “By studying their experiences, TEDA aims to facilitate the acceleration of technological and managerial innovations in Chinese industrial parks. This, in turn, will expedite the transition of Chinese industrial clusters towards a future characterised by net-zero carbon emissions.”
DKarbonation: Dunkerque Industrial Cluster (France): The DKarbonation: Dunkerque Industrial Cluster in France is a major industrial basin, which covers port, steel, aluminium, material and manufacturing, cement, gas, low-carbon hydrogen production, electric mobility and operates a leading European energy facility. DKarbonation had 16 million tonnes of CO₂ emissions in 2021 (Scope 1) and expects $1.2 billion of annual GDP contribution by 2050 and 31,950 jobs protected and created by 2030-2040. “In joining the World Economic Forum initiative, Dunkirk shows that it remains committed to reaching net zero by 2050 and being at the forefront of tackling global warming,” said Patrice Vergriete, French Minister of Housing, Dunkerque Urban Community President and Chairman, Euraénergie. “We are also committed to helping build a low-carbon economy and society, particularly in the areas of mobility and resource management, housing, transport and training, so that each and every person has access to jobs in the industry of the 21st century.”
Louisiana Future Energy Cluster (LFEC, United States): LFEC was created by the H2theFuture Coalition, which is led by Greater New Orleans, Inc. and supported by business development efforts of the Baton Rouge Area Chamber. It builds on Louisiana’s role as a top US oil and natural gas producer, with its large concentration of industrial petrochemical facilities and its consumption of approximately 30% of US hydrogen produced today. LFEC seeks to support Louisiana in its effort to become a leader for the clean-energy evolution, building a strong foundation for biofuels, green and blue hydrogen and ammonia, offshore wind power development, advanced recycling and advanced carbon capture and sequestration. LFEC had 143 million tonnes of CO₂ emissions from operations in 2021, $54.3 billion of GDP generated in 2021; and 34,546 new high-paying direct jobs through decarbonisation. “The energy sector in Louisiana is leading the way toward a net-zero future and we look forward to learning how to make more progress on decarbonization from our peers in this initiative,” said Russell Richardson, Baton Rouge Area Chamber Senior Vice-President of Business Development. “We aim to not only reduce carbon emissions but also create green jobs that are accessible to all residents. Together, we can create a cleaner, greener and more economically prosperous world for future generations.” The data points in this report and announcement represent CO₂e emissions, jobs and GDP/economic data reported by a limited number of signatory clusters. Work is under way to elaborate a comparable methodology for signatory industrial clusters to report on CO₂e emissions, jobs and GDP.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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