To achieve the Paris Agreement goals, all sectors of the economy must rapidly decarbonise. Greater attention is now being paid to the so-called hard-to-abate sectors such as steel. This paper “A Green Future for Steel” by Climate Bonds Initiative examines the policies required to accelerate the EU steel industry transition to net zero.
The 2020s offers a perfect opportunity for the steel industry to transition in Europe. 74% of EU steel blast furnace capacity needs reinvestment by 2030, and blast furnaces have a life span of decades. Coming investment cycles will lock plants into a specific production process. Policymakers must guide industry and investors onto a climate-aligned pathway for steel. This paper provides analysis of the climate impact of the steel sector and sets out key policy recommendations to accelerate its transition into the green economy.
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