The Heterogeneity of Steel Decarbonisation Pathways

Abstract

This document was prepared by the Organisation for Economic Co-operation and Development (OECD) Directorate for Science Technology and Innovation (STI) for the 2023 Japanese G7 Presidency and the G7 Working Group on the Industrial Decarbonisation Agenda, to inform discussions during the G7 Ministers' Meeting on Climate, Energy and Environment in Sapporo City, Hokkaido Prefecture on 14-16 April 2023. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the member countries of the OECD or the G7.This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

Financing solutions to foster industrial decarbonisation in emerging and developing economies

“…Sustainable finance markets have been growing rapidly in recent years, increasing from below USD 200 billion until 2017 to USD 1.6 trillion in 2021 (OECD, 2023 [31]). A number of investors are embracing this approach for their portfolio allocation, supported both by shareholders and beneficiaries.…”

“…"annual net emissions of carbon dioxide (CO(2)), methane and nitrous oxide could be reduced by a maximum of 1.8 Pg CO(2)-C equivalent (CO(2)-C(e)) per year" (Woolf et al, 2010[87]). 31 More information about the Poznan strategic and long-term programme for technology transfers can be found at: https://www.thegef.org/sites/default/files/publications/GEF_PoznanTT_lowres_final_2.pdf.…”

“…It has been created as part of a global initiative, as the 2010 United Nations Framework Convention on Climate Change Conference of the Parties mandated Multilateral Development Banks (MDBs) to establish regional technology transfer centres. It benefitted from initial funding from the Global Environment Facility's Long-Term Program on Technology Transfer 31. As the EBRD's regional technology transfer centre, FINTECC supports businesses in implementing climate technologies and supporting climate technology transfer across different regions and sectors.EBRD customers can apply for FINTECC support to complement traditional EBRD financing.…”

Vers des indicateurs de l’intensité carbone des produits plus granulaires, plus précis et disponibles plus rapidement

“…Elles peuvent découler d'une asymétrie des politiques d'atténuation entre pays, qui favorise le transfert de la production et des émissions vers des pays ou territoires dotés de politiques d'atténuation moins strictes et caractérisés par une production à plus forte intensité carbone (HM Treasury (Royaume-Uni), 2021 [12]). Des indicateurs de l'intensité carbone au niveau des secteurs et au niveau des produits peuvent aider à localiser les risques de fuites de carbone et à comprendre comment elles pourraient se manifester, et ainsi contribuer à orienter l'élaboration des politiques et à en définir les priorités (Yamano et Guilhoto, 2020[13] ; OCDE, 2023 [14]). Par ailleurs, les outils à la disposition des pouvoirs publics, tels que les normes obligatoires en matière d'émissions des produits et les mécanismes d'ajustement carbone aux frontières, reposent sur l'utilisation d'indicateurs de l'intensité carbone au niveau des produits pour pouvoir limiter les risques de fuites de carbone (OCDE, 2020 [15]).…”

Inclusive Forum on Carbon Mitigation Approaches Papers

“…Most emissions trading systems utilise free allocations of pollution permits to industry where they may be at risk of carbon leakage. To do this, benchmarking is often used to allocate allowances to those firms that perform below 3 Estimates of industrial process emissions are based on production data for iron and steel, clinker for cement, aluminium, and chemicals (OECD, 2023 [79]). 4 Sectors covered by the EU Emissions Trading System include power, heavy industry and civil aviation as well as buildings, road and other industry, as of 2023 under EU Emissions Trading System 2 (European Commission, 2023 [81]).…”