Synergies and trade-offs between climate and circular economy policies in the steel industry

Alvaro Calzadilla, Matthew Winning and Teresa Domenech

No 333480, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: A pathway towards 1.5°C requires substantial economic, societal and technological transformations (IPCC 2018). All sectors require deep and immediate emissions reductions. Heavy industry (steel, cement and chemicals) and heavy-duty transport (trucking, shipping and aviation) are responsible for around one-third of global CO2 emissions (ETC 2018). However, reducing emissions in these hard-to-abate sectors requires policy makers to support the development and diffusion of carbon-neutral technologies and align decarbonisation strategies to global and regional sustainable development pathways. We use an updated version of the ENGAGE-Materials model to assess different strategies and technology options in the iron and steel sector to achieve decarbonisation and a sustainable use of resources. Our results show that an enhanced circularity and the availability of new low-carbon technologies in the steel sector help reduce the costs of decarbonisation. Furthermore, the introduction of a global carbon price that limits fossil fuel use and the associated greenhouse gas emissions motivates the steel industry to move towards a more circular use of steel.

Keywords: Environmental Economics and Policy; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 10
Date: 2022
New Economics Papers: this item is included in nep-cse, nep-ene and nep-env
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