This report “China-Steel industry decarbonisation biannual review” by the Centre for Research on Energy and Clean Air provides insights into the latest trends of China’s steel sector decarbonisation.
Key findings:
● There were no new permits for coal-based steelmaking projects in the first half of 2024 for the first time since China announced its ‘dual carbon goals’ in September 2020.
● In the first six months of 2024, provincial governments permitted 7.1 million tonnes per annum of steelmaking capacity, all of which are electric arc furnace projects, which could signify a turning point for the Chinese steel industry in terms of halting new investments in coal-based steelmaking capacity.
● China could cut 200 million tonnes of CO2 from the steel industry by 2025, which would be a 10% reduction compared to the highest emission levels up to now recorded in 2020 due to measures to cut steel output and increase scrap-based secondary steel from electric arc furnaces.
● China’s forecasted CO2 reductions of 200 million tonnes by 2025 are equivalent to the annual emissions from the EU’s steel sector.
● As China’s steel demand peaks and more scrap becomes available, there is great potential to shift away from coal-based production, representing a significant opportunity for emissions reduction in the next 10 years.
Access the complete report here
