Investors Seek Urgent Action by Steel Makers for Green Steel
Reuters reported that investors managing USD 55 trillion in assets said steelmakers need to take urgent action on producing less carbon in order to meet the Paris Agreement on climate change. Climate Action 100+’s part initiative Institutional Investors Group on Climate Change said “Emissions from steel production account for 9% of the global total and must fall 29% by 2030 and 91% by 2050 to meet the net zero scenario laid out by the International Energy Agency in May. While it is technically feasible to reach net zero greenhouse gas emissions by mid-century, the steel industry is being too slow to act. Steel firms needed to set short, mid and long-term targets in line with the IEA report, and align their capital expenditure plans with net zero, including not investing in new, unabated production capacity.”
They also need to demonstrate that emerging technology can work and produce reports by the end of 2022 on how carbon capture and storage, and hydrogen-based processes can be used. In addition, they needed to be transparent about the public policy positions they will take to accelerate their transition, for example on carbon pricing and research and development.
While nine companies responsible for around 20% of global steel production have so far set firm net zero emissions commitments, they are mainly in Europe and Asia, and are largely in line with national net zero pledges and existing regulation.