New report focuses on need to mobilise buyers to accelerate demand for net zero steel

A new report released by the Energy Transitions Commission focuses on the need to mobilise buyers to accelerate the demand for net zero steel.

The report was developed in close collaboration with industry leaders by the Energy Transitions Commission and Material Economics on behalf of the Mission Possible Partnership’s Net-Zero Steel Initiative and with the support of Breakthrough Energy.

It provides guidance for critical stakeholders in major steel consuming sectors on how to actively participate in the commercialisation of low-CO2 primary steel production technologies and seize the associated commercial opportunity in being leaders in supply chain decarbonisation.

Decarbonising steel is essential to reach net zero climate targets by 2030 and beyond. 

Faustine Delasalle, Co-Executive Director, Mission Possible Partnership, said: “Growing demand for low-carbon materials such as steel remains a critical, but underdeveloped, piece of the puzzle to help industry decarbonise."

"This report shows where early markets for low-CO2 steel are most likely to emerge and calls upon industry leaders in the automotive, energy, construction and white good sectors to seize the commercial opportunity of being the first buyers of low-CO2 steel. Our aim is now to continue working with companies across those sectors to secure demand signals that will de-risk investment in the first low-CO2 primary steel production plants."

As the need to deliver deep emissions reductions becomes an increasing priority for steel producers and steel users, finding solutions to reduce their CO2 emissions in the short term and prepare for deeper cuts in the 2030s and 2040s is vital.

The report makes a number of recommendations to large, direct steel buyers including tongage in bilateral value-chain cooperation initiatives, using the demand to unlock upstream investments and accelerating the transition to net zero.

Julia Reinaud, Senior Director, Breakthrough Energy, said: “Decarbonizing steel will be central to our ability to reach our net-zero goals, and this is the decade when we must create the markets to drive investment and innovation and make zero carbon steel a reality."

"Public and private sector leaders alike have important tools available to them to jumpstart the zero-carbon steel market, and we hope they seize this opportunity to help the world build the net-zero industries of the future."

Find out more here.

6 July 2021

Climate Action