What Will It Take to Shift Investment from Coal-Based Steel to Green Steel? Practical Solutions for Developed and Developing Economies
Steel investment decisions taken in Asia over the next few years will shape emissions for decades. Global Energy Monitor identifies 357 million tonnes a year of steelmaking capacity under development in India, 42% of the global pipeline. Much of this expansion remains coal-based. New blast furnaces blast furnace relining will determine how long the industry continues to rely on coal.
Financing the first low-carbon plants remains difficult. Projects need affordable clean power, public support and buyers willing to sign long-term contracts. RMI estimates potential private demand for near-zero-emissions steel of 6.1 million tonnes a year by 2030 across seven East and Southeast Asian economies, excluding India and China. Turning that interest into purchase agreements remains a challenge.
Australia is supporting the development of a green iron industry, including through its A$1 billion Green Iron Investment Fund. IEEFA’s recent analysis identifies Japan, South Korea, India and Southeast Asia as potential markets. The question is whether Australian projects can secure the energy, infrastructure and customers needed to supply green iron at a competitive price.
The roundtable will discuss how governments, steelmakers, buyers and financiers can share the costs and risks of early low-carbon steel projects, drawing on experiences from across Asia and Europe.
This session will discuss what it will take to make low-carbon steel investible and what governments, industry and financiers can each do now. It supports the COP31 Action Agenda’s focus on investment readiness and country-led industrial decarbonisation hubs.
Speakers:
Dr Saurabh Trivedi, Institute for Energy Economics & Financial Analysis
James Bowen, Institute for Energy Economics & Financial Analysis
Noelle O’Brien, Director of Climate Change, Asian Development Bank
Dr Khalid Waleed, Sustainable Development Policy Institute (SDPI)
Frank Jotzo, Professor, Australian National University
Concept Note: https://docs.google.com/document/d/1K90QJdbNed-aTZjKRzKHtEx9apvvpR78Mc-AE3Y9fi0/edit?usp=sharing