Decarbonisation targets will drive every sector in the energy system to rapidly adopt innovative
technologies to achieve the dramatic emissions reductions required. Among all, sectors like in-
dustry, which currently exhibit a very high energy intensity, are likely to undergo major changes.
This manuscript focuses on the appraisal of the effects of a CO
2
tax in the investment and operation
decisions in industry. Within the larger modelling framework typical of an integrated assessment
model, the sector is modelled including the top-energy intensive industries, such as those man-
ufacturing pulp and paper, iron and steel, chemicals and petrochemicals, the non-ferrous metals
as well as non-metallic minerals. The simulations are carried out using a novel energy systems
model, MUSE, the Modular Universal energy systems Simulation Environment model.