Posted on 06 Feb 2025
The steel industry is a foundation for modern architecture and economic development. It is also known as one of the largest industrial emitters of greenhouse gases. This industry has many challenges, but there are new opportunities for companies' decarbonization initiatives.
Decarbonization consist of climate change mitigation and the process of reducing or eliminating carbon dioxide and other greenhouse gas emissions from the atmosphere. 1
New opportunities for industry decarbonization includes the following:-
Hydrogen-based steel making is a promising alternative to traditional carbon blast furnace as it reduces iron ore by using hydrogen. Investing in hydrogen steelmaking opens new economic prospects in green steel manufacturing.
2. Renewable Energy Integration
Companies who pioneer the integration of renewable energy into steel manufacturing may experience competitive advantage, cheaper long-term operational costs and potential carbon credits.
A report by the Institute for Energy Economics and Financial Analysis (IEEFA) stated the Middle East and North Africa would be the next world leaders in green steel and trade of green iron. India and Europe are the next market for green steel. 2
Companies that engage suppliers to develop a net-zero supply chain can enable reduction and accelerate climate action. This requires a collective action and effort from all industries. 3
Energy Efficiency and Circular Economy
Energy-intensive industries must try to reduce their carbon footprint by providing affordable and efficient clean technology solutions. According to the European Green Deal, the EU aims to become the first climate-neutral continent by 2050. Breakthrough technologies need to be developed by 2030. 4
7. Workforce Development
Clean energy is altering the job creation of the global workforce as demand for green talent and knowledge rises. By 2030, it is expected that more than 30 million jobs will be created in the field of clean energy, efficiency and low-emissions technologies. 5
Social Dimension of Climate Change
Climate change is closely related to global inequality patterns. The effects of climate change bring challenges such as extreme events, health impacts, food and water scarcity, threat to livelihoods and other risks. Progress has been made in science and reshaping of policies that are required for transition to low carbon and climate-resilient development. 6
The future of industry decarbonization seems promising but it will require much efforts from technology, policy and investment. As governments, investors and consumers work together to exert pressure on the related industries to reduce their carbon footprint, this will lead to a faster pace to produce low-carbon economy and create new opportunities for innovation and prosperity.
Industries that actively embrace these changes will position themselves as a leader towards a sustainable and resilient global economy.
Source: 1 ibm.com, 2024
2 swecogroup.com
3 weforum.org, 2024
4 cordis.europa.eu, 2024
5 worldfutureenergysummit.com, n.d
6 worldbank.org, 2024
Source:SEAISI
