Net Zero Steel Pathway Project Sets Path for Global Steel Industry
ResponsibleSteel has published final report and recommendations for the Net Zero Steel Pathway Methodology Project. The project was set up in response to the view of many steelmakers that while they were supportive of the value of science based targets for decarbonisation in line with the achievement of the goals of the Paris Agreement, they were concerned that key aspects of the specific methodology for defining a science-based target as developed by the Science Based Targets Initiative needed to be refined to recognise the characteristics of the steel sector. The project has been led by a steering group consisting of 4 steelmakers ArcelorMittal, Tata Steel, BlueScope Steel and GFG Alliance together with ResponsibleSteel and worldsteel. Another 11 steel companies and the German steel association have taken part as members of the project’s technical working group. Civil society organisations were briefed on progress through the project’s stakeholder reference group. ResponsibleSteel has been responsible for the project’s management, on behalf of the steering group as a whole.
The final report makes a number of recommendations which will be considered by the SBTi as an input for the development of SBTi steel sector guidance, due to start later in 2021. Work is now needed by all stakeholders to review the report’s recommendations, and to consider what it means for their own work in relation to reductions of the steel sector’s greenhouse gas emissions. These recommendations are urgently needed as the steel sector currently emits between 7-9% of global CO2 emissions annually. However, steelmakers will not be able to achieve net zero on their own, significant support will be needed from both investors and policy makers to create the right environment for the massive and long-term investment required to make the structural changes needed.
Tata Steel Europe Director Sustainability Ms Annemarie Manger said “Sustainability is at the heart of our strategy and steel is at the heart of global sustainability. This is why we have set ourselves a target to reduce our steelmaking emissions in Europe by 30-40% by 2030. To do this we will need to make significant investments to decarbonise our assets in the coming years, so we are preparing various decarbonisation options including hydrogen-based steel production technology and, especially in support of more rapid decarbonisation, carbon capture, storage or utilisation. Decarbonising the steel sector will need action not just from us and other steelmakers, but governments, policy, makers, markets and other stakeholders, including civil society, who will all need to work together to solve the challenge. We very much welcome the publication of this report as an important step on the pathway to a decarbonised sector, by making a valuable contribution to supporting steel producers with their own target-setting and transition”.