The China Iron and Steel Association (CISA) will soon present a series of programs to cut down CO2 emissions from the steelmaking sector as part of the country’s commitment to achieve climate neutrality by 2060.
According to media outlet ChinaDaily, a new committee will be created within the CISA structure, whose sphere of competence will include planning CO2 emission reduction and R&D technologies to reduce CO2 emissions, as well as the development of regulatory policies and financial incentives to carry out the eco-modernization of metallurgy.
The CISA predicts that China’s CO2 emissions will peak in 2030, but the country wants to achieve climate neutrality by 2060.
As noted in the CISA, the Chinese iron and steel companies will accelerate the utilization of non-fossil fuels in the production of steel, mainly hydrogen, and will also place their stake on green steel.
In turn, the country’s Government intends to promote the use of “green steel” in metal-consuming industries – in particular, in the construction sector.
Let us remind
We would like to remind that in January, UK metallurgists called on the country’s authorities to develop a package of measures to stimulate iron and steel enterprises to switch to carbon-free production technologies – green steel and hydrogen.
In the European Union, the investment plan for the “green transition” of the European industry amounts to 1 trillion euros during 2021-2030 in the form of concessional loans and subsidies. Moreover, the European Commission is going to allocate about 300 billion euros from the Coronavirus Relief Fund (the fund to combat the economic consequences of the impact of Coronavirus) specifically on the eco-modernization of industrial enterprises.
Under the European Green Deal, the European Commission intends to introduce a special “carbon” tax on importers that will not reduce CO2 emissions.
By November 2021, almost 200 countries in the world have to formulate their commitments to reduce greenhouse gas emissions by 2030 under the Paris Agreement. Ukraine plans to commit (HBV2) to reduce CO2 emissions by 58-64% compared to 1990.
Decarbonization in Ukraine
In Ukraine, the only incentive for decarbonization of the steelmaking industry is the green steel rule, according to which enterprises that have cut their CO2 emissions down to the European target level will be able to apply for a small reduction in the electricity tariff.
However, such rule exists in theory only. Six months after the adoption of the relevant law, the incentive did not get rolling due to the inability of the Cabinet of Ministers to develop the necessary legislative instruments.