Steel Sector and COP27 Trends
The steel sector’s share of emissions is approximately 3 GtCO2e, i.e. 5% of world emissions.
Emissions have increased by approximately 15% since 2010. For the industry to comply with the Paris Agreement, emissions must be reduced by approximately 25%. until 2030.
Steel demand will increase steadily in the coming decades from the present around 2 billion tons per year, especially in developing countries
The sector continues to depend on coal (75% of energy needs)
Growth in demand (Common definitions and standards because almost clean steel must be agreed as they are important for demand integration enablers and trade)
Cooperation in trade pilot projects in all major steel producing regions is needed to accelerate learning.Strategic dialogue on trade should start as soon as possible, i.e. involving major producer and consumer countries, agree on ways to ensure competitiveness of near-emission steel on the international market.
Global Shifts
What COP 27 means for the sector for the most popular choice in the global market, the effective use and production of near-zero emission steel is established and growing in all regions until 2030.
- Meanwhile, a global pipeline of conventional high-emissions, mostly coal-fired power plants is underway or in the planning stages. Getting behind the financial institutions’ stricter coal phase-out standards and successfully demonstrating fair transition platforms are essential if the industry is to turn around in those parts of the world where coal-fired steel is just emerging calls on non-governmental actors.
- CEOs and decision-makers to accelerate the development of standards by participating in the CEM Industrial Deep Decarbonization Initiative (IDDI) in collaboration with the IEA, Responsible Steel and the First Movers Coalition, recognizing ISO standards (e.g. 10 to create common definitions). on low-emission and near-zero-emission steel, consulting during 2023 to announce a common timetable for the formal adoption of common COP28 standards.
- CEOs, mayors and financiers can increase demand commitments by developing coordinated COP28 high-quality procurement contracts (FMC, Steel Zero and CEM via IDDI)
- CEOs and investors must urgently launch more near-zero carbon steel demonstration projects the Net Zero Industries of Mission Innovation Mission (NZIM) and through a possible mission partnership.
- Policymakers must initiate a strategic dialogue on low-emission and near-zero-emission steel trade at COP28, including leading producer and consumer countries. a bid for deep decarbonization of heavy industry.
