Wood Mackenzie – 5 Key Ways to Decarbonise Downstream, Nov 2025

This report focuses on decarbonising the downstream oil refining and petrochemical sectors.

Despite growth in renewables and electric vehicles, global oil demand remains high and resilient in the medium term due to petrochemical demand. Oil accounts for nearly 30% of global primary energy consumption. The power, industrial, and transportation sectors are major contributors to CO2 emissions, with oil as a significant fuel and feedstock. Decarbonisation in the downstream sector is critical and challenging, requiring continued commercial viability of facilities. The report identifies five key ways to decarbonise downstream operations and products, including carbon capture and storage (CCS), improved energy efficiency, use of renewable power, process optimisation, and producing less-polluting products. CCS is currently underutilized in the downstream sector due to dispersed CO2 sources and cost challenges.