ArcelorMittal says that the European Commission’s announcement that a legislative proposal will be made in 2021 to introduce a Carbon Border Adjustment (CBA) Mechanism is a significant step forward in recognising that a supportive policy framework is needed as soon as possible, Kallanish understands.
The CBA is a key policy mechanism for decarbonisation, which will create a fair competitive landscape by aligning the carbon costs of EU domestic steel producers with that of imports.
The EC’s proposals to also further increase the EU’s share of renewable energy by making it easier for member states to work together and deploy renewable energy projects, is considered “…encouraging” by ArcelorMittal. Access to abundant and affordable clean energy will enable the roll-out of low-emissions steelmaking.
The comany adds that access to sustainable finance for low-emissions steelmaking is a key requirement to create carbon neutral steelmaking.
“We are hopeful that our submissions for funding from the newly-created ETS Innovation Fund are successful and welcome the EU’s plan to develop a reliable EU Green Bond Standard,” the company says.
Another positive point in the new Climate Target Plan is the European Commission’s announcement that it wants to make Europe a leader in the circular economy.
“EU climate and materials policy should be integrated, taking a lifecycle perspective to ensure that materials are used in a circular way as much as possible,” ArcelorMittal comments.
The company is working to achieve its target of reducing CO2 emissions by 30% by 2030, with an ambition to be carbon-neutral by 2050. It is building two pilot projects called Smart Carbon and innovative DRI at different sites around Europe. It believes that both routes to carbon neutrality will help to significantly reduce its scope 1 CO2 emissions, which include all process emissions, by 2030, without having to wait for the large-scale, affordable, renewable energy needed for hydrogen-based steelmaking.