Energy Transition Commission publishes decarbonisation report for low carbon steel production

The Paris Agreement, which was signed by 175 countries and included the greenhouse gas and emission reduction targets of the countries, was also mentioned in the report. The Paris Agreement was ratified by Turkey on October 7, 2021, with a Presidential Decision. Thereupon, Türkiye set a net zero emission target for 2053.

A significant increase in demand for low carbon steel is expected. The production of products that are in high demand, such as electric vehicles and wind turbines, increases the need for green steel in particular.

The steel industry, which accounts for 7% of annual global greenhouse gases and emissions, will have to effectively implement emission reduction targets by 2030. Within this target, it is expected to produce 190 million tons of green steel by 2030.

Low carbon emission steel production should be tripled

In the published report, it was emphasized that emission reduction policies could be implemented for the steel industry in line with the requirements of the Paris Agreement until 2030. In order to meet these requirements, zero emission steel (green steel) projects need to be tripled in three years.

Developed countries are expected to lead

In the report published by the Energy Transition Commission, it was emphasized that the development of zero emission policies in steel production will require actionable policy and sector actions in the UK, Spain, France and the USA.

According to the report published by the Energy Transition Commission, green steel will be available in Europe and North America if the right policies are implemented.

These evaluations are in the transition phase to the implementation process with agreement between the EU and the USA. The US requests the EU to gradually introduce the border carbon regulation mechanism (CBAM) for steel. Low-carbon hydrogen support in the US and CBAM in the EU provide solid foundations to launch breakthrough projects in these markets.

Urgent action must be taken to achieve zero carbon emissions

In the report, which was prepared on the basis of the Paris agreement, it was mentioned that most of the low carbon steel projects to be produced until 2026 could be approved. The reason for this was to accelerate the transition processes regarding the 2030 targets.

Another way to speed up the process is to support steelmakers in the transition to zero carbon policies economically, by lowering the price of low-carbon electricity. In addition, increasing the use of green hydrogen and developing environmentally friendly policies by providing ease of access are some of the supports that will be offered to the project.

In order to reach the period agreed in the Paris Agreement, all the countries that have ratified the treaty and the steel producers in those countries must take immediate action. In addition, considering the delivery times of steel projects in this process is of great importance in the transition to zero carbon emissions.