The steel industry may have to step up its green game when 70% of firms have to pay a carbon price in 2017.
A new report claims the sector has made no progress in reducing emissions in a decade, despite accounting for 7% of all global carbon dioxide emissions.
According to not-for-profit firm CDP, six out of 14 steel firms revealed they have not published emissions targets past 2016. All existing industry emissions targets are set to expire by 2020.
The report suggests a “technological transformation” is needed if emissions per tonne of steel produced are to reach the Paris Agreement reduction target of 70% by 2050.
It adds this could be a problem due to low profits in the industry and with research and development expenses being slashed by 14% in recent years, no viable technologies to achieve these targets have been developed.
The report finds South Korean firms POSCO and Hyundai Steel are among the greenest steel companies, with Tata Steel and US Steel ranking the lowest out of the firms that disclose their information.
Drew Fryer, Senior Analyst, Investor Research at CDP said: “The steel industry will have to play a huge part in achieving the two-degree scenario laid out in the Paris Agreement. Steelmakers need to prioritise funding of a technology transformation to reduce emissions in order to ensure targets are met. In particular, progress has been too slow to realise the potential of carbon capture and storage (CCS), with no pilot projects underway in the steel industry.”