World Environment Day (5 June) serves as a critical annual reminder for the industrial gases sector to transition from high-emission production methods toward decarbonised solutions.
There can be no doubt the industry has made major strides with clean hydrogen, carbon capture and storage, lifecycle refrigerant management and using more efficient gases in production processes in recent years.
But the perennial message is it needs to accelerate clean technologies faster.
Ranjith Nair, Gulf Cryo CEO said, “The era of broad commitments is behind us. What matters now is execution. The real challenge is not reducing emissions but doing so while strengthening industrial competitiveness, supporting energy security and sustaining long term growth.”
He added that a key driver will be seeing carbon not as waste but a source of value.
“Through our applications and technology centre, we are investing in CO2 utilisation, hydrogen and clean energy solutions, and building the partnerships across value chains that will further unlock the possibilities that industrial gases play in a lower carbon economy. Growth, responsibility and sustainability can advance together.”
Most companies analysed by the Institute for Energy Economics and Financial Analysis (IEEFA) identified at least one action to decarbonise their operations, from renewable energy adoption and energy efficiency improvements, to using green hydrogen and carbon capture technologies.
However, these levers are rarely linked qualitatively with climate ambitions such as a net-zero target. Few firms demonstrate how specific actions contribute to emissions reduction over time.
Its analysis showed that governance structures remain “largely procedural’ and have yet to translate into clear accountability, incentive alignment or execution capacity for delivering climate transition plan objectives.
“The weakest governance component overall is incentives and remuneration, with only a handful of large internationally exposed companies disclosing mechanisms linking climate targets to compensation,” it notes.
“Translating climate ambition into quantified, time-bound and financially integrated execution pathways is another weak point. Most companies do not demonstrate a link between transition actions and corporate budgeting. Internal carbon pricing is largely absent, with only a third of companies reporting its use, according to the IEEFA analysis. Even fewer report using it for capital allocation decisions.”
The carbon dioxide market is beginning to move beyond a focus on volume and availability, with growing emphasis on as buyers become more selective in how CO2 is sourced.
Rather than treating CO2 as a uniform commodity, buyers are beginning to differentiate between sources based on lifecycle emissions, production pathways and associated environmental benefits.
Biogenic CO2, produced from renewable sources such as anaerobic digestion, is expected to play a central role in this shift. Once considered a niche addition to supply, it is increasingly being integrated into mainstream sourcing strategies as the industry looks to lower its carbon footprint.
The industrial gas majors, rather than just selling fossil-derived gases, are now functioning as clean technology providers. Their gases (nitrogen, argon, green hydrogen) are now the main enablers for other heavy sectors to achieve industrial decarbonisation (such as EV battery production, solar panel manufacturing, and green steel).
Major players validate their clean tech transition by participating in sustainability indexes. For example, Air Products is frequently featured on Barron’s 100 ‘Most Sustainable Companies List’ for their hydrogen and gas-separation membrane technologies.
Decarbonisation policies are progressing but are not moving fast enough to meet international 1.5°C climate targets.
The UK government recently set an ambitious between 2038 and 2042 under the seventh carbon budget.
EU-UK cross-border projects in part because the legal recognition of transport and storage of captured carbon dioxide is lacking, according to European trade body, The Carbon Capture and Storage Association.
Alongside greater regulatory certainty, it wants policymakers to grasp the nettle on linking emissions trading schemes (ETS) at the upcoming EU-UK Summit, which is tentatively scheduled for 13 July.
Overall the balances the need for climate warnings with grounds for optimism.
Inger Andersen, Executive Director of the UN Environment Programme, said, “Renewables surpassed coal as the world’s largest electricity source in 2025. The clean energy juggernaut will stop for nobody. But we still need to be smarter and more flexible about when we use electricity to minimise emissions and prevent grid overload.”
