A recent study says that the world’s steel industry will see a 30% drop in its CO2 emissions by 2050, compared to 2021 levels.
The main reason for the steel industry’s carbon emissions to fall is that more and more of the mills used in the sector are being converted to less emissions-intensive electric arc furnaces or EAF.
Estimates suggest that almost half of all crude steel production will be via EAF by 2050, representing an 18% increase compared to 2021.
This, together with the wider adoption of carbon capture, utilization and storage (CCUS) technologies and green hydrogen-based direct reduced iron that is used in EAF, is largely what will facilitate the massive emissions cut.
Last year, the world’s steel industry emitted over 3.3 billion metric tons of greenhouse gasses (GHG), with China’s share being more than 2 billion tons.
Hence, the study by consultancy firm Wood Makenzie expects China, as the world’s leading metal producer, to be ahead of everyone else and spearhead the transition, although much of the emissions cut is expected to be attributed to declining output.
China already cut back on its crude steel production in 2021, when output fell some 30 million tons, and a further drop has been pledged for this year.