China updates roadmap for achieving carbon neutrality in steel industry

China’s Steel Industry Expert Committee on Low-Carbon Metallurgy has published a new report on achieving the 2060 carbon neutrality target, Kallanish reports.

The country maintains its goal of reducing carbon dioxide emissions in the steel industry by 40% in 2040, 85% in 2050 and 95% in 2060. China is also committed to achieving carbon neutrality by 2060, including absorption as well as carbon capture, utilization and storage. Before that, it is necessary to reach peak emissions by 2030.

The committee added to the roadmap information on the European Cross-Border Carbon Adjustment Mechanism (CBAM), low-carbon steel, emissions trading, and low-carbon finance. The latest document also contains a list of 51 technologies covering six ways to reduce carbon emissions.

Challenges to decarbonization for Chinese steelmakers include limited investment cycles and expensive energy (natural gas and hydrogen), which are needed in the long term.

According to the low-carbon research department of the China Steel Development Research Institute, the country’s steelmakers have only one full investment cycle left for deep decarbonization, which requires steel mills to immediately adopt a green transformation strategy and be cautious about investing in carbon-intensive processes.

As GMK Center reported earlier, Chinese steelmakers may join the carbon trading scheme in 2024. National low-carbon steel standards are currently under study