Industrial Deep Carbonization Initiative To Develop Global Strategy For Steel Decarbonization By 2050

(Credit: SteelZero)

The Industrial Deep Decarbonization Initiative (IDDI), an initiative of the Clean Energy Ministerial, has been launched to develop a global strategy for steel decarbonization by 2050. 

In the fight against climate change, heavy industries such as steel and cement are the next frontier, each representing about 7 to 8 percent of energy related emissions globally, according to IDDI. Unlike efforts to decarbonize the energy sector, which are well underway, steel and cement pose a unique set of challenges: the need for continuous high-temperature heat requiring large amounts of energy, and renewable technology for steel and cement production is still not available at scale.

As I previously discussed, there is a growing movement focused on bringing low-carbon steel and cement solutions to market. For instance, Volvo is building cars using fossil-fuel free steel, Mercedes-Benz has announced its own green steel commitments, and New York recently passed a low-carbon concrete bill.

One of IDDI’s primary strategies is to create market demand for low-carbon industrial materials like steel through green public procurement commitments. IDDI estimates that public construction accounts for around 25% of global steel use, meaning that widespread implementation of green public procurement policies could apply low-carbon steel production standards for a significant share of global steel capacity.

IDDI aims to secure public procurement commitments for low-carbon steel from at least ten governments within three years, with the first set of government green public procurement commitments at the 2021 United Nations Climate Change Conference (COP26) in November. 

Other international efforts to decarbonize the steel industry include initiatives from industry and civil service organizations such as SteelZero, a net zero steel procurement pledge organization, and ResponsibleSteel, a steel standard and certification initiative. 

Key IDDI activities and outputs within three years:

1. A standard environmental reporting mechanism for both the cement and steel industry, providing a consistent communication framework for organizational accountability.
2. A standard evaluation process and tools for project bids which incentivize and reward public work contractors on their commitment to source decarbonized building materials.
3. Consistent minimum standards for low-carbon steel and cement products to encourage best production and manufacturing practice.
4. Procurement guidelines for government agencies detailing how to set environmental project targets and incentivize contractors to source and use low-carbon steel and cement products.
5. The launch of a free or low-cost certification service, enabling cement and steel producers to demonstrate their commitment to the decarbonized production of steel and cement while simultaneously accelerating global demand for certified low-carbon steel and cement.
6. Publicly available data, research and tools for industry and governments to set targets, establish industry wide definitions of key sustainable products, improve production processes and benchmark best practice between organizations and industries.
7. Industrial deep decarbonization training and knowledge sharing to ensure that all cement and steel manufacturers have access to the information required to participate in the global race to net zero.
8. A global 2050 vision for the decarbonization of the steel and cement industries with ambitious targets informed by collective stakeholder input.