Decarbonizing the iron and steel industry requires $1.4 trillion of investment, of which $250 billion is for carbon credits, according to Wood Mackenzie’s latest report, Pedal to the Metal: Iron and steel’s $1.4 trillion shot at decarbonization.
The industrialized world relies heavily on steel, with 2.2 billion tonnes of production needed to meet global demand by 2050. Iron and steel production release a combined 3.4 billion tonnes of carbon each year, representing 7% of total global emissions.
Remarking on the report, lead author Malan Wu said that “Decarbonizing the steel industry is a big task. To meet Wood Mackenzie’s 1.5°C accelerated energy transition scenario by 2050, steel emissions must reduce by 90% from current levels. There is an urgent need to act now to decarbonize the iron and steel sectors. Business as usual is no longer sustainable.”