Ahead of COP28, European Steel Association (EUROFER) Director General Axel Eggert said that an agreement on an effective Global Regulation to tackle the steel industry's challenges such as overcapacity and carbon intensity could support efforts to make the global steel industry carbon neutral by 2050.
Over the next three years, the current non-market overcapacity in the global steel iustndry is expected to reach another 150 million tonnes. This situation requires the EU and the USA to work together to combat this overcapacity and reduce carbon emissions.
As a result, there is a call to find a common path between the EU and the USA, to conclude the negotiations positively and to find effective solutions to global challenges, while industry representatives demand a significant step in this regard before COP28.
According to the OECD, current non-market overcapacity in the global steel industry has reached 600 million tonnes, with a further 150 million tonnes to be reached in the next three years. In addition to China, new sources of excess capacity are also growing in ASEAN countries, South Asia, the Middle East and North Africa.
“This new conventional, carbon-intensive capacity will stabilize CO2 emissions for decades to come, resulting in more CO2 emissions than the entire EU steel industry combined, eliminating all emissions reduction efforts by the EU steel industry by 2050 in just three years,” Eggert said. "The absence of a Global Regulation on Sustainable Steel risks jeopardizing the European steel industry's decarbonisation efforts and demonstrates the limits of the EU's global climate and trade diplomacy," he said.
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