The Middle East and North Africa Green Steel Summit 2024, held in Dubai, UAE from September 11-12, 2024, marked a significant step towards establishing the region as an emerging global hub for green steel. The summit brought together industry leaders, policymakers, and innovators to discuss the transformative potential of green steel in achieving sustainability and reducing carbon emissions.
The Global Carbon Council (GCC) participated virtually, emphasizing the critical role of carbon credits in financing decarbonization initiatives. With McKinsey and other reports predicting a burgeoning carbon credits market valued at $30-50 billion by 2030, there is a big role for carbon markets to contribute for global decarbonization including the Steel Sector.
Steel production is recognized as one of the hardest sectors to decarbonize, responsible for approximately 7% of global direct CO2 emissions, translating to a staggering 2.6 billion tons of CO2 emissions each year. The challenge lies not only in the high emissions but also in the technological hurdles and economic factors associated with traditional steel production methods. However, transitioning to green steel production offers a promising pathway to significantly reduce emissions across several key industries, including automotive, construction, transportation, energy, and manufacturing.
At the summit, Hemant Nandanpawar, Senior Director of Climate Finance & Stakeholder Management at GCC, during an online presentation titled “Carbon Market Opportunities for Carbon Neutrality in the Steel Sector”, outlined the current emission scenario within the steel sector and highlighted the myriad opportunities for leveraging carbon finance to support emission reduction projects. His insights underscored the GCC’s commitment to facilitating a sustainable and low-carbon future through carbon credit issuance. As the first international carbon credit and sustainable development program based in the Global South, GCC is endorsed by CORSIA and ICROA. The GCC Program aims to promote sustainable development by issuing carbon credits to eligible greenhouse gas (GHG) emission reduction projects worldwide. This not only drives essential climate finance into projects that mitigate emissions but also aligns with the UN Sustainable Development Goals (SDGs).
In his presentation, Hemant outlined how the GCC Program can significantly contribute to carbon neutrality in the steel sector by showcasing several promising mitigation options and innovative technological approaches to iron and steel making at an industrial scale. He categorized these interventions into three primary categories:
- 1- Carbon Capture Utilization and Storage (CCUS)
- 2- Hydrogen-Based Iron Making
- 3- Electrolysis in Iron Making
He emphasized that the GCC Program provides a robust framework for developing projects that implement these innovative strategies, which not only aim to reduce carbon emissions but also catalyze climate action on the ground. He assured that project construction and operations are designed to avoid any net harm to the environment and society, aligning with the United Nations Sustainable Development Goals (SDGs) and host countries’ priorities.
By leveraging carbon markets, Hemant noted that industries can eliminate, reduce, inset, offset, or neutralize their emissions by retiring carbon credits generated from activities or projects that effectively lower greenhouse gas emissions elsewhere. The GCC Program is built on trust and credibility, ensuring the integrity of emission reduction initiatives while minimizing negative impacts and demonstrating contributions to the SDGs.
Furthermore, he highlighted that carbon finance would be available in the form of certified carbon credits, enhancing the economic viability of these projects and addressing potential barriers. The GCC Program also facilitates the purchase and sale of approved carbon credits through a marketplace operated by S&P Global, connecting corporations and governments to catalyze climate action.
By participating in significant events like the MENA GREEN STEEL SUMMIT, the GCC is at the forefront of advancing the dialogue on carbon finance and its role in decarbonization. As we strive for a greener future, the commitment to innovating and investing in sustainable solutions has never been more crucial. Together, we can harness the potential of carbon credits to facilitate a transition to a low-carbon economy and secure a sustainable future for generations to come.
