Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Partnerships between governments and the steel industry are fundamental to a sustainable future according to the latest position paper published by worldsteel. The steel industry has made significant reductions in greenhouse gas emissions in the past decades by improving energy efficiency and deploying new technologies and practices resulting in benefits to the environment and economies. According to worldsteel, more can be done to ensure a global solution to greenhouse emissions.


The steel industry believes it is very important to be actively engaged as we continue to strive to move towards a low carbon society. Governments, the steel industry and other stakeholders will all need to collaborate in order to overcome the technological and economic challenges involved to ensure progress. The paper makes five key recommendations to strengthen these engagements:


  1. Governments need to recognise and embrace the importance of a strong and healthy industrial base in a sustainable economy. The role of the steel industry needs to be considered within the context of a progressive industrial policy and governments need to engage with the steel industry when developing a carbon policy that would impact the industry.
  2. Steel is a CO2 and energy intensive, but highly competitive industry that also enables major CO2 mitigation in other sectors. However, there is a risk that inequities introduced by carbon pricing mechanisms could jeopardise fair competition.
  3. A life cycle approach is an important tool for future environmental policy.
  4. Governments should promote and encourage a circular economy approach leading to: innovative design, a reduction in the amount of materials used, encouragement of reuse and recycling of all materials and minimised waste.
  5. Progress in breakthrough technology development in steelmaking and implementation must be maintained or accelerated requiring the financial burden to be shared by both government and the private sector.


The paper also lists the challenges for a sustainable future for steel. They include, recycling, use of co-products, and energy efficiency. Worldsteel indicates that The greenhouse gas of most relevance to the world steel industry is carbon dioxide (CO2).On average for 2017, 1.83 tonnes of CO2 were emitted for every tonne of steel produced. The steel industry generates between 7pc and 9pc of direct emissions from the global use of fossil fuel.


Click the link below to read the worldsteel position paper:


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