View in EDS

Emerging green steel markets surrounding the EU emissions trading system and carbon border adjustment mechanism

Saved in:
Bibliographic Details
Title: Emerging green steel markets surrounding the EU emissions trading system and carbon border adjustment mechanism
Authors: Johnson, Constantin, Åhman, Max, Nilsson, Lars J, Li, Zhenxi
Contributors: Lund University, Faculty of Engineering, LTH, Departments at LTH, Department of Technology and Society, Environmental and Energy Systems Studies, Lunds universitet, Lunds Tekniska Högskola, Institutioner vid LTH, Institutionen för teknik och samhälle, Miljö- och energisystem, Originator, Lund University, Faculty of Engineering, LTH, LTH Profile areas, LTH Profile Area: The Energy Transition, Lunds universitet, Lunds Tekniska Högskola, LTH profilområden, LTH profilområde: Energiomställningen, Originator, Lund University, Faculty of Engineering, LTH, Departments at LTH, Department of Technology and Society, Environmental and Energy Systems Studies, Industrial Transformation, Lunds universitet, Lunds Tekniska Högskola, Institutioner vid LTH, Institutionen för teknik och samhälle, Miljö- och energisystem, Industriell omvandling, Originator, Lund University, Faculty of Engineering, LTH, Departments at LTH, Department of Technology and Society, Environmental and Energy Systems Studies, Resources, Supply Chains and Security, Lunds universitet, Lunds Tekniska Högskola, Institutioner vid LTH, Institutionen för teknik och samhälle, Miljö- och energisystem, Resurser, försörjningskedjor och säkerhet, Originator, Lund University, Profile areas and other strong research environments, Lund University Profile areas, LU Profile Area: Nature-based future solutions, Lunds universitet, Profilområden och andra starka forskningsmiljöer, Lunds universitets profilområden, LU profilområde: Naturbaserade framtidslösningar, Originator, Lund University, Faculty of Engineering, LTH, LTH Profile areas, LTH Profile Area: Food and Bio, Lunds universitet, Lunds Tekniska Högskola, LTH profilområden, LTH profilområde: Livsmedel och bioteknik, Originator, Lund University, Faculty of Engineering, LTH, LTH Profile areas, LTH Profile Area: Circular Building Sector, Lunds universitet, Lunds Tekniska Högskola, LTH profilområden, LTH profilområde: Cirkulär byggindustri, Originator, Lund University, Faculty of Engineering, LTH, Departments at LTH, Department of Design Sciences, CIRCLE, Lunds universitet, Lunds Tekniska Högskola, Institutioner vid LTH, Institutionen för designvetenskaper, CIRCLE, Originator, Lund University, Faculty of Engineering, LTH, Departments at LTH, Department of Technology and Society, Transport and Roads, Lunds universitet, Lunds Tekniska Högskola, Institutioner vid LTH, Institutionen för teknik och samhälle, Trafik och väg, Originator, Lund University, Faculty of Engineering, LTH, Departments at LTH, Department of Technology and Society, Lunds universitet, Lunds Tekniska Högskola, Institutioner vid LTH, Institutionen för teknik och samhälle, Originator
Source: Nat. Commun.. 16(9087)
Subject Terms: Social Sciences, Economics and Business, Economics, Samhällsvetenskap, Ekonomi och näringsliv, Nationalekonomi, Engineering and Technology, Environmental Engineering, Environmental Management, Teknik, Naturresursteknik, Miljöteknik och miljöledning
Description: The global steel industry accounts for 8–10 % of global CO2 emissions and requires deep decarbonisation for achieving the targets set in the Paris Agreement. However, no low-emission primary steel production technology has yet been commercially feasible or deployed. Through analysing revisions and additions of European Union climate policy, we show that green hydrogen-based steelmaking in competitive locations achieves cost-competitiveness on the European market starting 2026. If the deployment of competitive low-emission steelmaking is insufficient, we show that the European steel industry loses competitiveness vis-à-vis countries with access to low-cost renewable energy. Therefore, we assess the options for the European steel industry to relocate the energy-intensive ironmaking step and trade Hot Briquetted Iron for rapid deep decarbonisation of the European steel industry. Lastly, we discuss complementing policy options to enhance the Carbon Border Adjustment Mechanism’s strategic value through European Union-lead global climate cooperation and the possibility of sparking an international decarbonisation race.
Access URL: https://doi.org/10.1038/s41467-025-64440-9
Database: SwePub
Description
Abstract:The global steel industry accounts for 8–10 % of global CO2 emissions and requires deep decarbonisation for achieving the targets set in the Paris Agreement. However, no low-emission primary steel production technology has yet been commercially feasible or deployed. Through analysing revisions and additions of European Union climate policy, we show that green hydrogen-based steelmaking in competitive locations achieves cost-competitiveness on the European market starting 2026. If the deployment of competitive low-emission steelmaking is insufficient, we show that the European steel industry loses competitiveness vis-à-vis countries with access to low-cost renewable energy. Therefore, we assess the options for the European steel industry to relocate the energy-intensive ironmaking step and trade Hot Briquetted Iron for rapid deep decarbonisation of the European steel industry. Lastly, we discuss complementing policy options to enhance the Carbon Border Adjustment Mechanism’s strategic value through European Union-lead global climate cooperation and the possibility of sparking an international decarbonisation race.
ISSN:20411723
DOI:10.1038/s41467-025-64440-9