Luxembourg-based steel manufacturer ArcelorMittal last week published its second group climate action report – announcing its target of reducing emissions by 25% by 2030 will be backed by a $10bn investment into carbon-reduction solutions.
The steel major also bumped its European 2030 carbon emissions intensity reduction target from 30% to 35%. Its plans to reach net-zero emissions by 2050 were announced in September last year, and 35% of the recent estimation of $10bn in investment is expected to be delivered by 2025.
In a statement, ArcelorMittal’s chief executive Aditya Mittal said: “As the world’s most prolific material, steel can make a huge contribution to the decarbonisation of the global economy.”
“ArcelorMittal has been working hard to be at the forefront of our sector in the net-zero transition, as we believe not only will this help decarbonise the global economy but will also generate opportunities in multiple aspects of our business” he added.
Within the new report, the company also outlined its roadmap to reach net-zero steelmaking, with several key industry steps identified as needed to reach the goal. These include transitioning from coal-fired steel production plants to cleaner production methods such as green hydrogen, and an increased use of waste materials in furnace steelmaking.
Currently, more than 90% of the world’s metal produced is steel, and the industry is known for being a major contributor to carbon emissions, accountable for around 7% of global emissions from fuel use. Technologies to cut carbon in the production process are gaining increasing traction, in particular innovations in carbon capture and electrification technologies are seen as offering a way to net-zero.
The report also identified different regions of the world as decarbonising at different paces – with the company’s method of targeting emissions reductions in those areas adapting accordingly. These are split into ‘Accelerate’ or ‘Move’, with the former being an environment more conducive to decarbonisation, and the latter where change will need to be pushed for.
“These targets reflect the uneven pace of change that is the reality of the world’s decarbonisation journey,” said Mittal in his statement. “In regions of the world like Europe, where we are observing an ‘Accelerate’ policy scenario, we can be more ambitious…in other markets we face a situation where being a first mover will result in us being uncompetitive in that market.”
“With COP26 focused on addressing the acceleration that is critical in the next decade if the world is to reach its 2050 target, it may be that we will see a swifter evolution of this policy environment than is currently envisaged. Policymaking has a catalytic role to play” he added.