What's Happening?
The UK steel industry has expressed support for a new global agreement reached at the COP30 climate conference in Belém, Brazil. This agreement involves major steel certification and standards bodies adopting
a common approach to measuring greenhouse gas emissions and classifying low-carbon steel. ResponsibleSteel, a global non-profit organization, has signed partnership agreements with Germany's Low Emission Steel Standard and China's Low-carbon Emission Steel Standard. These agreements cover 60% of the world's steel production and aim to create a more level playing field by aligning classifications of low-emission steels across regions. This alignment will facilitate global trade and provide clarity for steel buyers, investors, and policymakers.
Why It's Important?
The agreement is a significant step towards reducing greenhouse gas emissions from the steel industry, which is a major contributor to global emissions. By standardizing the measurement and classification of low-carbon steel, the agreement promotes transparency and accountability in the industry. This could lead to increased investment in low-emission steel technologies and encourage more sustainable practices across the sector. The alignment of standards also supports global trade by allowing for easier comparison and exchange of low-emission steel products, potentially driving innovation and competition in the industry.
What's Next?
The UK steel industry is awaiting the publication of the government's 'Plan for Steel,' which is expected to outline a decarbonisation roadmap for the sector. The plan's release was delayed due to the government's emergency takeover of British Steel. The British Constructional Steelwork Association (BCSA) is advocating for a comprehensive strategy to reduce emissions and support the transition to low-carbon steel production. As the industry moves towards 2050, the demand for steel is expected to exceed the supply of scrap metal, highlighting the need for continued innovation and investment in sustainable steel production methods.
