Investors call for urgent action by steelmakers on carbon emissions

Kobe Steel

04/08/2021 07:00

* IIGCC issues priority actions for steelmakers  
    * Calls for short-term targets in line with IEA report
    * Also says need to demonstrate emerging technology works 

    By Simon Jessop
    LONDON, Aug 4 (Reuters) - Steelmakers need to take urgent
action on producing less carbon in order to meet the Paris
Agreement on climate change, investors managing $55 trillion in
assets said on Wednesday.
    Emissions from steel production account for 9% of the global
total and must fall 29% by 2030 and 91% by 2050 to meet the net
zero scenario laid out by the International Energy Agency in
May, the Institutional Investors Group on Climate Change said.
    The IIGCC, as part of the Climate Action 100+ initiative,
said in a statement that while it was technically feasible to
reach net zero greenhouse gas emissions by mid-century, the
steel industry was being too slow to act.
    Steel firms needed to set short, mid and long-term targets
in line with the IEA report, and align their capital expenditure
plans with net zero, including not investing in new, unabated
production capacity, the IIGCC added.
    They also needed to demonstrate that emerging technology can
work and produce reports by the end of 2022 on how carbon
capture and storage, and hydrogen-based processes can be used.
    In addition, they needed to be transparent about the public
policy positions they will take to accelerate their transition,
for example on carbon pricing and research and development.
    While nine companies responsible for around 20% of global
steel production have so far set firm net zero emissions
commitments, they are mainly in Europe and Asia, and are largely
in line with national net zero pledges and existing regulation.
    "We cannot afford to delay action – while emerging
technology has a role to play, the IEA’s report highlights that
existing technology can deliver 85% of the emissions reductions
needed by 2030," IIGCC Chief Executive Stephanie Pfeifer said.
    ArcelorMittal  MT.LU , the world's top steelmaker, and
German peer Salzgitter  SZGG.DE  earlier this year announced
hydrogen-based projects to help lower their
emissions. urn:newsml:reuters.com:*:nL8N2MJ274 urn:newsml:reuters.com:*:nL8N2L94CD
    In Japan, meanwhile, the country's third-biggest steelmaker,
Kobe Steel  5406.T , said it plans to cut emissions by 30%-40%
by 2030 from 2013 levels. urn:newsml:reuters.com:*:nL4N2MY19V 

 (Reporting by Simon Jessop;
Editing by Alexander Smith)
 ((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052;
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