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The council's report says more than 21 million tons of CO2 emissions can be cut if businesses tighten their reduction targets.

Does 'businesses' mean 'industries' and 'their' refer to that?

Thanks
LiJ
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Yes and yes.

Well, essentially yes. Businesses are individual companies; industries are major groups of companies in the same kind of business, considered together (as the tourist industry, the steel industry, etc.)
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Thanks, Mister. Emotion: smile