Steel Sector Carbon Emissions Must be Cut by 75%, Suggested New Report

SEATTLE (Scrap Monster): The new report published by Wood Mackenzie states that carbon emission by the steel sector need to fall by 75% from current levels, in order to restrict global warming to levels of 2 degree Celsius. Accordingly, the emission of over 3,000 million tonnes of carbon dioxide equivalent by the steel industry in 2020 must be reduced to 780 million tonnes by 2050.

The report predicts 23% surge in steel demand over the period from 2020 to 2050. The demand is expected to expand in India, Southeast Asia and South America, whereas the consumption is likely to fall in China as well as Europe.

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Wood Mackenzie report urges advanced economies to lead the way in curbing emissions by employing innovative steelmaking technologies such as hydrogen use. Currently, steel is responsible for approximately 7% of the global carbon dioxide emissions.

The report recommends that the steel industry must double scrap use in steelmaking, triple DRI production and use, reduce global average EAF emissions intensity by 70%, reduce BF-BOF emissions intensity by 30% and capture and store 45% of the residual carbon emissions. The rise in scrap consumption could result in 24% fall in total iron ore demand and 35% boost in pellet products market. Also, the decarbonisation efforts are likely to boost DRI trade.