The industry sector in many countries has a significant role in reaching national long-term emission reductions, energy efficiency and renewable energy targets. New technologies, wide implementation of energy efficiency measures and smart energy management are needed for the industry to ensure local and global competitiveness and reduce emissions. Since the industrial sector is often comprised of sub-sectors that are unique and with local specifics, this paper focuses on three of them, taking Latvia as the case. The sectors are: manufacture of wood and wood products, non-metallic mineral products, as well as food products and tobacco. These sub-sectors together consume around 80 % of the total final energy use in the country’s industrial sector. Comprehensive analysis and decomposition of the sub-sectors was made to identify future development pathways. TIMES model was used to elaborate a process-oriented modelling approach to analyze the impact of measures defined in the National Energy and Climate Plan until 2030 as well to gauge the impact of additional measures. Results show that these measures promote the use of renewable energy and improve energy efficiency, however it is necessary to set new measures and activities for the period beyond to reach climate neutrality by 2050.