The low carbon steel landscape Steel demand will increase by around 30 % by 2050 according to the World Economic Forum. Achieving this demand while facilitating a reduction in carbon emissions from steel will require around US $ 300bn on top of business as usual and supportive, consistent policy measures, Standard Chartered says.
Europe is a mature steel market, relying on predominantly blast furnace steel production infrastructure. When these furnaces reach end of life, the opportunity arises to replace them with EAFs, helping to reduce carbon emissions by up to 80 %.
The Middle East has significant incumbent DRI EAF infrastructure and a growing demand for low carbon steel as markets are looking to diversify into downstream industries. Capital and fiscal incentives are helping to create a natural centre of gravity for low carbon steel production.
Costs and constraints The EU Carbon Border Adjustment Mechanism( CBAM) has introduced a carbon tariff on carbon intensive products like steel for importers bringing in more than 50 tonnes of relevant goods per calendar year. The start of CBAM certificate sales has been pushed back
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