China’s Baowu Steel Group has joined the wave of global steel companies pledging to achieve carbon neutrality by 2050. Its carbon emissions will peak on the basis of current production plans and technology use in 2023. Baowu then plans to cut its total emissions by 30pc by 2035 and achieve carbon neutrality over the next 15 years thereafter.
Baowu will increase the utilization of renewable energy given the significant effect of energy consumption in steel. It plans to use solar, wind, biomass, and develop hydrogen.
The move is significant as the steel industry accounts for 15pc of China’s total carbon emissions and the Asian country is the world’s highest greenhouse polluter. Baowu’s 100mn mt annual production made up about 10pc of China’s over 1bn crude steel output in 2020. Baosteel, Bayi Steel, and Maanshan Iron & Steel are under the group’s umbrella. China’s President Xi Jinping pledged to move China to carbon neutrality by 2060.