Classification of Industrial Sectors Based on Their Profiles of Greenhouse Gas Emissions and Policy Implications.

Purpose: This article determines the volume of greenhouse gases emitted by a range of industrial manufacturing sectors in order to give direction to public emission reduction programmes and increasing the impacts of the latter. Design/methodology/approach: To this end, it applies a classification of industrial manufacturing sectors based on their greenhouse gas emissions profiles. By making use of economic data on the consumption of energy sources and a conversion process, we obtain an estimation of greenhouse gas emissions, and consequently a profile of the direct/indirect emissions, concentration of emissions, total emissions and electrification level of each sector. Finally, this allowed us to segment the sectors into four groups. Findings: By grouping the sectors into four segments we reveal a series of group-specific characteristics, which serves as a basis for corresponding greenhouse gas reduction programmes. Special attention should be given to the segment that features a large amount of emissions concentrated in a relatively low number of firms and a low level of electrification, while making a disproportional use of public funds as compared to the volume of their emissions. Research limitations/implications: This research followed an aggregate (macro) approach, which limits the possibilities to interpret the results from a NACE level towards individual companies pertaining to a specific sector. This applies also to the use of average values for conversion factors. Take note also that some big emitter sectors, such as extractive industries and petroleum refining industries, are not included in the study. Practical implications: Public programmes should consider different approaches to reducing greenhouse gas emissions based on sectoral segmentation. General recommendations are proposed for each of the identified segments. Social implications: Improved public programmes can foster the reduction of greenhouse gas emissions and the United Nation's Sustainable Development Goals 7 and 12. Originality/value: The methodology proposed in this paper allows pointing out sectors where return on investments in greenhouse gas reduction would be highest. [ABSTRACT FROM AUTHOR]