Iron and steel’s US$1.4 trillion shot at decarbonisation –September 2022

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Iron and steel’s US$1.4 trillion shot at decarbonisation  

The industrialised world cannot function without steel. It is essential to everything from the buildings we live into the ways we get around. Wood Mackenzie estimates that meeting global steel demand will require 2.2 billion tonnes of production by 2050 – a 15% increase from 2021. From iron ore mining to steel manufacturing, the industry is highly carbon intensive. And while steel itself is recyclable, iron and steel production emit a combined 3.4 billion tonnes of carbon annually, equal to 7% of global emissions. The steel industry, therefore, faces a huge challenge in achieving net zero emissions by 2050. Under our 1.5 °C Accelerated Energy Transition Scenario (AET-1.5), which is broadly aligned with the most ambitious goal of the Paris Climate Agreement, the decarbonisation of the iron and steel sectors will require around US$1.4 trillion of investment. 


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