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: