In order to achieve the goals of the Paris Agreement the rapid decarbonization of all sectors will be required. The global steel sector is currently responsible for around eight percent of global emissions and relies to a large extent on coal for primary steelmaking. However, some technologies for low-carbon production have already reached maturity and can be deployed from now on - as a wave of steel companies' announcements to build low-carbon steel production capacity before 2030 underlines. Given the fact that a large part of coal-based steelmaking capacity will reach the end of its life before 2030 and can be replaced with low-carbon technologies, the steel sector represents a great opportunity to achieve significant CO2 reductions within a short time – if the appropriate policy frameworks are in place. Hereby a single-speed transformation across all regions taking into consideration country specificities would facilitate international cooperation for a fair international playing field.
This project is realised in cooperation with the Wuppertal Institut, Lund University and the International Network of Energy Transition Think Tanks (INETTT). It analyses country-specific net-zero pathways for steel and potential policy options across all regions, including for the top ten global steel producing countries. The project also provides an up-to-date overview of the potential for low-carbon investments in the steel sector, taking into consideration available net-zero and net-negative technologies, demand side reduction measures and the possible contribution of the steel sector to reaching NDC targets. The findings of the project will be summarised in policy recommendations which should serve a basis for further discussion.