Financing For Steel Sector Decarbonization And The Significance Of Standards

Direct carbon dioxide (CO2) emissions from the steel sector amounts to about 7% of total energy sector emissions and 25% of industrial CO2 emissions (IEA, 2020) and achieving net-zero steel in sector will require cumulative investment between $5.2 and $6.1 trillion (MPP, 2022). Emission intensity of steel is a critical criterion in investment decisions which underscores the importance of independent measurement and reporting of the emission intensity of the steel produced. ResponsibleSteel Standard and Certification provides an independent third-party certification assessing emissions and other social criteria from a steel a producing site which the finance industry can leverage on to make financing decisions to the steel sector. In this session, ResponsibleSteel will present the dynamics of steel decarbonization, and the critical role of standards and certification program in enabling finance flows to the steel sector decarbonization.