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Forging a Greener Steel Future: Key Takeaways from the EU-China Stakeholder Exchange on Steel Decarbonization

October 31, 2024, Jiaxing - workshop

On October 31, 2024, Jiaxing, China, the China Academy of Social Science, the Yangtze Delta Region Institute of Tsinghua University, and the EU-CHINA BRIDGE team hosted a pivotal gathering of experts, policymakers, and industry leaders at the EU-China Workshop on Steel Decarbonization. This hybrid event brought together experts from Europe and China, exploring paths to decarbonize one of the most energy-intensive sectors in the world. From green steel standards to ambitious measures for decarbonizing steel production at different scales, the workshop highlighted actionable steps towards a low-carbon future for steel production. Dr. Xiang Yu, from Research Institute for Eco-civilization of China Academy of Social Science shared insights of green and low industry sector development in China based on their project insights. Dr. Chun Xia-Bauer from the Wuppertal Institute, introduced the EU-CHINA BRIDGE project, in particular the plan to analyse the decarbonization of steel decarbonization. 

 

Setting the Scene for the Green Steel Transition: Global and Regional Perspectives on Steel Decarbonization

The workshop began with an insightful session moderated by Dr. Dagmar Kiyar from the Wuppertal Institute, exploring global, Chinese, and European trends in steel decarbonization. The session kicked off with a presentation by Mr. Andrew Purvis, from the World Steel Association, who spoke about the progress of global steel decarbonization, technology roadmaps, breakthrough technologies, and the challenges facing global steelmakers. Following his insights, Dr. Chang Tan from Tsinghua University offered a China-focused perspective, detailing the policy framework and technology roadmap driving China’s steel decarbonization. Ms. Annika Tönjes from the Wuppertal Institute then explored three core decarbonization strategies for the EU steel industry, namely, adopting green hydrogen, increasing scrap recycling, and modifying iron import practices.

 

Panel Discussion 1: Defining Green Steel – On Establishing Green Steel Standards

Moderated by Dr. Lukas Hermwille from the Wuppertal Institute, the first panel centred on green steel standards—a crucial aspect of aligning global practices with sustainability goals. Panelists included Dr. Yinghao Liu from Baowu Steel’s R&D Centre, who outlined the methodology behind China’s low-carbon steel standards, addressing elements such as system boundaries, threshold metrics, and verification. Similarly, Mr. Gerhard Endemann from Germany’s WV Stahl, discussed the methodology of Germany’s LESS standards for low-carbon steel. Ms. Bing Li from the China Metallurgical Industry Planning and Research Institute presented on low-carbon steel labelling and the technological pathways adopted by major Chinese steelmakers. The panellists concluded by discussing how to operationalize the two standards and outlined the next steps for each. 

 

Panel Discussion 2: Driving change at all levels: Decarbonizing steel from the mill to the global market

The second panel discussion, led by Dr. Chun Xia-Bauer of the Wuppertal Institute, explored steel decarbonization efforts at different levels, from plant-specific strategies to global trade. Prof. Stefan Lechtenböhmer from Kassel Institute for Sustainability in Germany, outlined the European steel sector's prospects for using green hydrogen in the steel industry, the development of hydrogen infrastructure, and the economic challenges of implementing green hydrogen due to high costs and the need for significant investments in hydrogen production and transport systems​. Süheyb Bilici from the Wuppertal Institute, presented the potential of global green iron trade as a transformative driver for a near-zero-emission steel industry, emphasizing the strategy of producing green iron in optimal global “sweet spots” and transporting it affordably to facilitate worldwide decarbonization. Mr. Meng Zhang from the China Metallurgical Industry Planning and Research Institute presented emerging technologies and pilot projects for hydrogen use in the Chinese steel industry, concluding with a roadmap for hydrogen adoption in steelmaking in China. Prof. Yuli Shan from the University of Birmingham further discussed plant-level decarbonization, focusing on the co-benefits and trade-offs associated with energy conservation measures in China’s steel plants. Mr. Guangjun Li from Ningbo Iron and Steel presented the company’s steel decarbonization strategy, highlighting various technology pilot projects they have implemented

 

A collective journey: Transforming steel production for a low-carbon future

The shared expertise and commitment to low-carbon steel standards and multi-level decarbonization strategies underline a mutual ambition in the EU and China of making the transition to low-carbon steel production. In addition, international cooperation and trade offer valuable opportunities to accelerate decarbonization efforts in a cost-effective way, supporting a more sustainable global steel industry. The EU-CHINA BRIDGE initiative will continue to facilitate this exchange throughout its implementation. While the path to a carbon-neutral steel industry is full of challenges, the increasing exchange of ideas and strategies between regions is a promising step forward. The lessons learnt from global, Chinese and European collaboration point to a future where green steel is not only possible, but within reach, paving the way for a more sustainable world.