China's Steel Industry Expert Committee on Low-Carbon Metallurgy has published a new report outlining the country's updated roadmap for achieving carbon neutrality in the steel industry by 2060.The report maintains China's previous goal of reducing carbon dioxide emissions in the steel industry by 40% in 2040, 85% in 2050, and 95% in 2060. The country remains committed to reaching carbon neutrality by 2060, including through carbon absorption as well as capture, utilization and storage.
The updated roadmap also includes new information on the European Cross-Border Carbon Adjustment Mechanism (CBAM), low-carbon steel, emissions trading, and low-carbon finance. Additionally, the document lists 51 technologies covering six ways to reduce carbon emissions in the steel industry.
However, Chinese steelmakers face significant challenges in decarbonization, including limited investment cycles and the high cost of the energy sources, such as natural gas and hydrogen, needed for long-term deep decarbonization. Experts warn that steel mills must immediately adopt a green transformation strategy, as they only have one full investment cycle left to achieve deep emissions cuts.
The report also notes that Chinese steelmakers may join the country's carbon trading scheme as early as 2024, while national low-carbon steel standards are currently under development.