Carbon Credits for Net-Zero?
Around 7% of the total global emissions are from the Iron and steel industries, which equals 3.4 billion tonnes of carbon each year.?
According to a report by Wood Mackenzie, the iron and steel industries need to put in $1.4 trillion of investments to reach net zero by 2050.
Lead author Malan Wu said:
“To meet Wood Mackenzie’s 1.5°C accelerated energy transition scenario by 2050, steel emissions must reduce by 90% from current levels. But the analysis assumes only a 33% decline in steel emissions from current levels. Business, as usual, is no longer sustainable.”
The largest resolve to this matter remains – the switch to Electric Arc Furnaces (EAFs).?
Other than that, as a part of the $1.4 trillion investment opportunity for industry players, it is required that they:
? Explore new high-grade iron ore mines
? Improve the current steelmaking routes
? Invest in green technologies like high-grade mines and DR pellet capacities.
? Need about 50 million tonnes of green hydrogen per year.
? Install 2000 GW of renewable energy generation capacity.
? Develop a hydrogen ecosystem for steel
? Buy carbon credits
After all of these, it won’t be enough to reach the 1.5C mark.?
These industries will have to buy up to $250 billion in carbon offsets, also called carbon credits. They’re necessary to tackle emissions that can’t yet be reduced.
A collaborative effort between the key players on a global stage will help drive forward this agenda of achieving net zero by 2050.
Ref: https://carboncredits.com/iron-and-steel-industry-buys-250b-carbon-credits-net-zero/?no_cache=1664383459