The global steel industry is one of the most energy intensive and polluting sectors in the world, contributing roughly 7% of global carbon emissions each year. And without action this is set to increase with global steel demand predicted to grow by a further 30% by 2050.
As the world’s leading steelmaking region, Asia will make or break the decarbonisation of the global steel industry. Home to many of the world’s largest steelmakers, roughly 70% of global steel is produced in China, Japan, India, and South Korea, with over 50% of all steel produced globally made in China alone.
Here lies the challenge. To meet global climate targets, it’s crucial to eliminate the CO2 emitted from the production of this widely used material. Only then will the world have a chance of limiting global temperature rise to 1.5C.
Unlocking potential in Asia
To drive this transition forward we’re bringing together steel buyers, steel producers, policymakers, and government officials in Singapore on 8 June at our SteelZero Summit, as part of the Climate Group Asia Action Summit. By convening leaders from the fastest growing economic region on earth, we’ll not only be discussing how Asia can become the green economic powerhouse of the future, but also how the region can accelerate steel decarbonisation.
The SteelZero Summit will be deep diving into some of the most critical issues facing the industry on its path to net zero and solutions to enable this. We’ll examine issues around financial support, supportive policy frameworks and common standards and definitions, and how to create a level playing field for net zero steelmaking.
Together we’ll be exploring ways that Asian businesses and governments can act now and collaborate to accelerate this transition, ultimately enabling the region to lead global net zero steel production.
Seizing the opportunity
Ending Asia’s dependence on fossil fuels for steelmaking can accelerate innovation and the scale up of new technologies, especially green hydrogen, and renewable energy infrastructure.
Crucially, it would also secure and generate green jobs, upskill workforces and allow the industry to continue to support local economies. Countries across Asia can realise many of these opportunities if they make the progressive decisions today to secure a net zero steel industry for the future.
The transition can unite steel producers under one common cause: supplying the new market for responsibly produced materials. And we’ll hear from the steel industry on the critical role steel users can play in speeding up this transition at the SteelZero Summit.
The key role of businesses
Asian businesses are already taking note. Recently, CIMC TCREA, the steel buying division of one of the world’s leading shipping logistics and container solutions company, CIMC, committed to using 100% net zero steel by 2050 at the very latest by joining SteelZero. This sends a clear signal to steel producers, policy makers and investors in China, and across Asia, that there’s a real demand for net zero steel.
But the transition needs to happen faster, and at a larger scale. It’s now time for more Asian businesses to play their part by strengthening this signal and demanding responsibly produced steel. Taking action to decarbonise the global steel industry will ensure that the foundations of our future are built with net zero steel.
Please join us in Singapore to discuss how together, we can unlock Asia’s potential to lead the global steel industry’s transition to net zero and become a green economic powerhouse.