The guidance is intended to develop and set emission reduction targets in an industry context
The Science Based Targets Initiative (SBTi) has launched the world’s first science-based guidance on decarbonisation for steelmakers. It is designed to develop and set emission reduction targets in an industry context. It is stated in a message on the SBTi website.
With this guidance, SBTi determines to what extent and how quickly the company must reduce emissions in the steel value chain to limit global temperature rise to 1.5°C.
Steel industry is a sector that accounts for up to 9% of all emissions worldwide. The industry is also key to the functioning of the global economy and plays an important role in the development of renewable energy technologies, including solar panels and wind turbines.
According to research by the initiative, 14% of the potential value of steel companies could be at risk from rising carbon prices by 2040 if the global industry does not reduce its environmental footprint. Science-based guidance for the steel industry provides a clear road map for companies to set short- and long-term emission reduction targets.
«The role of the steel industry is critical for the climate. Therefore, it is imperative to have a reliable and science-based framework to guide decarbonization efforts in the industry,» said Alberto Carrillo Pineda, co-founder and chief technical officer of SBTi.
The guidance considers issues affecting the steel industry’s ability to meet climate targets, including future global steel demand, data limitations, availability of key technologies and scrap.
The guide provides a scientific framework and tools for producers in the primary and secondary steel chain, companies in the value chain (iron ore suppliers and distributors), and financial institutions.
More than 20 steel companies have confirmed short-term science-based targets and 27 have committed to setting them, including 19 commitments to achieve zero emissions.
The SBTi Steel Guidelines were developed with the participation of an independent expert advisory group. The methodology was created in collaboration with the Energy Transition Commission (part of the Mission Possible Partnership), an alliance of climate leaders focused on accelerating the decarbonization of industrial sectors.
As GMK Center reported earlier, dialogue and cooperation in the G20 will be critical in securing access to the resources needed to decarbonize the global steel industry. Cooperation of member countries in several areas is recommended, in particular, in the exchange of knowledge on technological research and development.