EUROFER advocacy paper on Emission Trading Scheme

The steel industry’s contribution to tackling climate change

European steel (EU-27) has a total annual production of 200 million tonnes, and a turnover of more than 140 billion Euros. The industry provides direct employment for 370 000 EU citizens. Over 22 million people are employed in the steel processing, using and recycling industries. About 9 000 people are working in steel research in the European Union. The European Steel industry is a global leader in terms of product and process innovation and in minimizing its environmental impact. The European steel industry is committed to sustainable growth and a substantial reduction of its CO2 emissions.

Steel industry past achievements

From 1970-2005 European steel industry has reduced CO2 emissions by 60 %, from 1990-2005 by 21 %:

• Development of continuous casting and phasing out of soaking pits and intermediate rolling step
• Development of high power electric arc furnace (EAF) for scrap recycling
• Development of coal injection in blast furnaces
• Development of sensors and process models improving performance
• Improvement of material efficiency at all steps of steel production
• Phasing out of domestic low grade iron ores
• Increased production with EAF in relation with increasing scrap availability

In addition, by developing new steel materials and taking into account life cycle of materials and products, the European steel industry has substantially contributed to the energy efficiency and the reduction in CO2 emissions of various goods, i.e. cars, power stations, electrical equipment, and buildings.

Steel industry future CO2reduction projects

Available CO2 mitigation technologies have reached their maximum potential at this time. It is unlikely that significant improvements can be made with current technologies.

Nevertheless, the European steel industry is prepared to do more for a further reduction of CO2 emissions. To this end, the European steel industry is investing in ambitious research and development projects, e.g. “Ultra Low CO2 Steelmaking” (ULCOS), investigating new breakthrough technologies with the aspirational reduction target of 50 % of specific CO2 emissions should there be successful implementation of these technologies:

Technologies potentially exploitable from 2020

• New blast furnace with top gas recycling
• Improved direct reduction
• Smelting reduction
• Capture and storage of CO2

Technologies potentially available between 2020 and 2050

• Hydrogen based steel making
• Use of biomass
• Iron ore electrolysis

Steel Industry Proposal

Eurofer has advanced the idea of achieving CO2 reduction targets through a sectoral approach introducing the concept of an industry specific system which can be applied globally and rewards progress.