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Green finance adalah. From wind turbines to electric vehicles, steel will be an integral enabler of the energy transition. But steel production is a major source of greenhouse gas GHG emissions. Most steel is still made using coal to reduce iron ore, a process that emits roughly two metric tons of CO2 per ton of steel.
The industry accounts for 7% of global GHG emissions from the energy system — equal to global aviation, shipping and chemicals emissions combined. For the world to reach net-zero emissions by 2050 in line with IPCC Intergovernmental Panel on Climate Change recommendations, attention needs to turn to industrial sectors such as steel, where emissions in the production processes themselves and the need for very high temperatures make the path to decarbonisation more difficult than in the power sector. The good news is that a revolution in steel production is now within reach.
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