ArcelorMittal publishes first Climate Action Report
May 29 2019 - 02:00AM
Report states ArcelorMittal’s ambition
to significantly reduce global CO2 emissions and be carbon neutral
in its European operations by 2050
29 May 2019, 08:00 CET - ArcelorMittal (‘the
Company’) has today published its first Climate Action report in
which it announces its ambition to significantly reduce CO2
emissions globally and be carbon neutral in Europe by 2050. To
achieve this goal the Company is building a strategic roadmap
linked to the evolution of public policy and developments in
low-emissions steelmaking technologies. A target to 2030 will be
launched in 2020, replacing the Company’s current target of an 8%
carbon footprint reduction by 2020, against a 2007 baseline.
The report explains in greater detail the future challenges and
opportunities for the steel industry, the plausible technology
pathways the Company is exploring as well as its views on the
policy environment required for the steel industry to succeed in
meeting the targets of the Paris Agreement.
Commenting, Lakshmi Mittal, Chairman and CEO,
ArcelorMittal, said:
“We believe it can be possible for the steel industry to deliver
carbon emissions reductions targets in line with the Paris
agreement. We are committed to this objective and are actively
piloting several low-carbon steelmaking technologies. Central to
achieving this aspiration will be supportive policy to ensure a
global level playing field, access to sufficient clean energy at
competitive prices and access to finance. The energy industry has
made great strides in creating a pathway to lower emissions through
supportive policy and we are confident the same can be true for
steel.
“Limiting the temperature increase to two degrees or less is no
easy challenge. Real and genuine understanding of the complexities
and an approach of collaboration and flexibility will be critical
if we are to succeed. Specifically, we will need a more supportive
policy environment that considers the global nature of steel, the
cost implications of significantly changing the way steel is made
and the clean energy supply needed to do so. If we can work
together to solve the problem, I’m convinced the steel industry
will be able to make a significant contribution to reducing carbon
emissions globally.”
As one of the world’s most prolific materials, with 1.7 billion
tonnes of steel produced in 2018, the steel industry today accounts
for approximately 7% per cent of global emissions. And with demand
for steel and materials set to further increase - forecasts show
demand rising to 2.6 billion tonnes in 2050 - it is vital the
industry finds ways to significantly reduce its carbon emissions to
successfully meet the ambitions of the Paris agreement and help
limit the global average temperature rise to less than two
degrees.
At present carbon is used as a reductant in the blast furnace to
separate oxygen from iron-ore as a critical part of the
steel-making process. Significantly reducing the emissions
footprint of steel will, in all likelihood, require a fundamental
change in the science of steelmaking
As the world’s leading steel company, ArcelorMittal recognises
it has a leading role to play in developing breakthrough
technologies that will support and enable a global transition to a
low-carbon economy. The Company has identified three distinct
pathways that have the potential to deliver a significant reduction
in carbon emissions. These are:
- Clean power steelmaking, using clean power as
the energy source for hydrogen-based steelmaking, and longer-term
for direct electrolysis steelmaking;
- Circular carbon steelmaking, which uses
circular carbon energy sources, such as waste biomass, to displace
fossil fuels in steelmaking, thereby enabled low-emissions
steelmaking;
- Fossil fuel carbon capture and storage, where
the current method of steel production is maintained but the carbon
is then captured and stored or re-used rather than emitted into the
atmosphere.
ArcelorMittal believes that all three pathways offer significant
emissions reduction potential aligned with science-based targets
and is currently testing various technologies across all three
pathways in its European operations. This technology portfolio will
enable the Company to pursue the appropriate option depending on
the pace of technology and public policy development, which will
impact which pathway becomes the most viable in the countries and
regions where the Group operates.
In terms of public policy recommendations, ArcelorMittal
advocates the development and implementation of carbon regulations
and market mechanisms to enable the deployment of low-emissions
steelmaking that will help to deliver the global objectives of the
Paris agreement. The Company’s global policy recommendations
include:
- Global level playing field is needed to
maintain the competitiveness of low-emissions steelmaking and to
avoid the risk of carbon leakage, for example, through green border
adjustments;
- Access to abundant clean energy at affordable
prices will be key to be able to scale up low-emissions
technologies;
- Facilitating necessary clean energy
infrastructure will be needed to advance large-scale
implementation of low-emissions technologies;
- Access to sustainable finance in order to
accelerate and roll out technology development;
- Accelerate transition to a circular economy by
incentivising the use of waste streams as inputs in manufacturing
processes.
ArcelorMittal
will also intensify dialogue with stakeholders who have an
important role to play in enabling these technology routes to
become a viable reality and highlights the need for a more
collaborative approach if the full potential is to be unlocked.
The report is available for download at
http://corporate.arcelormittal.com/sustainability/arcelormittal-climate-action-report.
ENDSAbout
ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and an industrial
footprint in 19 countries. Guided by a philosophy to produce safe,
sustainable steel, we are the leading supplier of quality steel in
the major global steel markets including automotive, construction,
household appliances and packaging, with world-class research and
development and outstanding distribution networks.
Through our core values of sustainability,
quality and leadership, we operate responsibly with respect to the
health, safety and wellbeing of our employees, contractors and the
communities in which we operate.
For us, steel is the fabric of life, as it is at
the heart of the modern world from railways to cars and washing
machines. We are actively researching and producing steel-based
technologies and solutions that make many of the products and
components people use in their everyday lives more energy
efficient.
We are one of the world’s five largest producers
of iron ore and metallurgical coal. With a geographically
diversified portfolio of iron ore and coal assets, we are
strategically positioned to serve our network of steel plants and
the external global market. While our steel operations are
important customers, our supply to the external market is
increasing as we grow.
In 2018, ArcelorMittal had revenues of $76.0
billion and crude steel production of 92.5 million metric tonnes,
while own iron ore production reached 58.5 million metric
tonnes.
ArcelorMittal is listed on the stock exchanges
of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and
on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and
Valencia (MTS). For more information about ArcelorMittal please
visit:
http://corporate.arcelormittal.com/
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ArcelorMittal Corporate Communications Paul
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