Addressing steel decarbonisation challenges for industry and policy

Oecd

No 171, OECD Science, Technology and Industry Policy Papers from OECD Publishing

Abstract: The steel industry is at the forefront of decarbonisation, with over 90% of steelmaking capacity located in countries committed to net-zero targets. Most major steel producers have established ambitious decarbonisation goals, with two-thirds targeting net-zero emissions and many adopting Scope 1 and Scope 2 targets alongside detailed decarbonisation roadmaps. However, the comprehensiveness of these plans varies, with some lacking clear timelines for necessary investments and technologies. Decarbonising the steel sector presents interconnected challenges, including scaling up technologies, securing resources, ensuring investments, creating markets for low-carbon steel and phasing out emission-intensive plants. Many low carbon breakthrough technologies remain uncommercialised, while the higher cost of low-carbon steel requires a price premium. Effective decarbonisation requires policies that address these challenges, including closing infrastructure gaps, supporting innovation and fostering demand for low-carbon steel. Moreover, policies must enable the closure of emission-intensive facilities while managing the transition to low-carbon steelmaking and mitigating risks of exacerbating excess capacity.

Keywords: Breakthrough technologies; Corporate strategies; Decarbonisation; Decarbonisation policy; Net-zero; Steel; Transition planning (search for similar items in EconPapers)
Date: 2024-12-17
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Persistent link: https://EconPapers.repec.org/RePEc:oec:stiaac:171-en

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