Advance a comprehensive, ambitious policy framework to reduce industry emissions
As with industry overall, the decarbonisation of steel will require multiple measures, including:
- Adopting mandatory CO2 policies covering industry and expanding international co-operation – domestically this might include carbon prices or CO2 performance regulations, while carbon border adjustments or international sectoral agreements could be considered to limit carbon leakage without neglecting current global free trade principles.
- Managing existing assets and near-term investments in order to create a smooth and fair global energy transition, such as encouraging – and, in some instances, providing public support for – refurbishment to near zero-emission technology. Such support could prevent construction of announced emission-intensive plants, which account for more than two-thirds of the current pipeline, becoming stranded assets. Advanced economies have an important role to design investment mechanisms with public and private support that can accelerate the transition in developing economies, considering their heterogenous starting points.
- Increasing investment in R&D and deployment for near zero-emission technologies, including through direct support and mechanisms to mobilise private sector finance, especially in emerging markets and developing economies.