ArcelorMittal publishes first Climate Action Report

Report states ArcelorMittal’s ambition to significantly reduce global CO₂ emissions and be carbon neutral in our European operations by 2050

29 May 2019, 08:00 CET - ArcelorMittal has today published the first Climate Action report in which we announce our ambition to significantly reduce CO₂ emissions globally and be carbon neutral in Europe by 2050. To achieve this goal, we are 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 our 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 we are exploring as well as our views on the policy environment required for the steel industry to succeed in meeting the targets of the Paris Agreement.

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, we recognise we have a leading role to play in developing breakthrough technologies that will support and enable a global transition to a low-carbon economy. We have identified three distinct pathways that have the potential to deliver a significant reduction in carbon emissions. These are:

We believe that all three pathways offer significant emissions reduction potential aligned with science-based targets and are currently testing various technologies across all three pathways in our European operations. This technology portfolio will enable us 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 we operate.

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. Our 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.