eco-friendly growth model

At present, the world has reached a consensus on the importance of tackling climate change, and industries have formed higher carbon emission reduction standards. By 2050, according to the International Energy Agency

To achieve net zero emissions annually, total global emissions would need to fall by 37 percent to 21.1 billion tons by 2030, compared with current emissions of 33.9 billion tons. To meet this target, the industry sector will contribute 13 per cent of emissions reductions by 2030, when a number of clean technologies can also be expected to be deployed on a large scale.

The steel industry is one of the most carbon intensive and difficult industries to decarbonize, accounting for 7.2% of the global total. The decarbonisation of the steel industry cannot rely on electrification alone, but needs more targeted solutions to deal with emissions from burning fuels to provide high temperatures, as well as emissions from reaction processes that use coal as the main reducing agent. In addition, steel production facilities generally have a long life and low replacement rate. In China, for example, the average life of a blast furnace is 13 years, and facilities can operate for more than 20 years before decommissioning

3. Therefore, on the one hand, rapid transformation may bring a certain degree of stranded asset risk; On the other hand, clean smelting technology and supporting infrastructure need to be steadily promoted from now on to gradually form a scale.

At present, policies to promote the decarbonization of the steel industry are accelerating industrial transformation. Around the world, governments have issued different environmental goals, measures or incentives,

To encourage the decarbonization of the steel industry. For example, the European Commission and the European Steel Technology Platform (ESTEP) have published proposals and a roadmap for a clean partnership that aims to reach

At least two demonstration projects to reduce emissions by 80 percent from 1990 will be completed by 2030. China's Ministry of Industry and Information Technology has issued a plan for Green Industrial Development during the 14th Five-Year Plan period,

The goal is to reduce carbon dioxide emissions per unit of industrial value added in steel, non-ferrous metals and other key industries by 18 percent by 2025, based on 2020.

In addition to policy, the carbon market is also driving the decarbonization process of the steel industry. The European carbon market has included steelmakers since its first phase in 2005. During this period, steelmakers will receive free carbon allowances without having to go through an auction because they have the characteristics of heavy industry. By 2030, according to Europe's "Carbon Reduction 55" plan.

From Insight Research