Global steel industry must cut emissions 70% - CDP Study
New research reveals steel emissions have not fallen in a decade, prompting calls for a 'technological transformation' of the industry. According to new research published by CDP steel industry is dramatically lagging behind other sectors when it comes to emissions reduction efforts.
The steel industry is responsible for around 7% of all global emissions, and has made no progress on cutting emissions in the last decade, the research suggests. In order for the sector to fulfill its share of limiting warming to less than two degrees, CDP argues the steel industry must cut emissions by 70% per tonne by 2050 a feat it says can only be achieved through a "technological transformation" of the sector.
But according to the report, investment in R&D across the industry has actually fallen by 14% in recent years. Mr Drew Fryer senior analyst of investor research at CDP said that investment in emerging technologies such as carbon capture and storage is vital to secure the steel industry's future.
He further said that "The steel industry will have to play a huge part in achieving the 2-degree scenario laid out in the Paris Agreement," he said in a statement. "However, there has been no progress in reducing its emissions over the past decade. Steelmakers need to prioritise funding of a technology transformation to reduce emissions in order to ensure targets are met. In particular, progress has been too slow to realize the potential of CCS, with no pilot projects underway in the steel industry."
The need to decarbonise is made even more pressing by the commercial risk presented by widespread carbon pricing. By the end of 2017 more than 70 per cent of world steel production is expected to be covered by a carbon price, thanks to the impending launch of China's nationwide cap-and-trade system.
Without low-carbon innovation, carbon pricing looks set to hurt the economics of an industry already enduring low levels of profitability, the CDP report warned.
Some manufacturers are particularly vulnerable to stricter climate change legislation, CDP said, highlighting Tata Steel and US Steel as having some of the most carbon intensive assets on their books.
In contrast, South Korean firm POSCO and Hyundai Steel were judged to be among the best performing on climate issues, scoring well on emissions management, climate targets, water resilience and climate governance.
Source : Business Green