In a groundbreaking joint venture, SINAI Technologies is teaming up with steel giant ArcelorMittal Brasil and clean energy transformation organization RMI to help decarbonize the steel industry.
SINAI is a decarbonization and carbon management software platform that hopes to leverage its expertise in the field to contribute to the more sustainable production of steel.
The steel sector is known to account for some 7% of the world’s total greenhouse gas (GHG) emissions, making its decarbonization critical for climate change mitigation.
However, due to the lack of standardized emission information, implementing meaningful climate commitments in the sector has proved to be a challenge.
For this reason, clean energy transformation organization RMI has released its Steel Emissions Reporting Guidance, as part of the Horizon Zero project, with the aim of helping steel stakeholders calculate their total supply chain emissions, also known as Scope 3 emissions.
ArcelorMittal Brasil is eager to adopt greener production processes, which is why the company has already entered into the agreement at full speed by uploading activity data from its steel plant onto the SINAI platform.
This data will allow SINAI to create a process-level greenhouse gas (GHG) inventory, consisting of the company’s emission sources and the amount of emissions they generate.
And together, all SINAI, RMI and ArcelorMittal Brasil will be able to demonstrate through pilot testing how better reporting guidance and software solutions can bring about the transparency needed to allow sustainable purchasing decisions.
This collaboration should mark a very significant step towards the decarbonization of a notoriously hard-to-abate sector and will potentially create differentiated commodities markets to advance the process.