GENEVA: Stripping
out carbon from steel production would drive up prices by about 10%-20%, the
chief executive officer ArcelorMittal said on
Thursday, saying this could make green producers' business model inviable.
The global steel industry is one of the most energy-intensive industries worldwide,
accounting for approximately 8% of global annual carbon dioxide emissions, and
it is under pressure to cut back.
"In our preliminary estimates...the cost to decarbonise steel is not so
prohibitive, so the system could take it. I think the cost of steel would go up
10 to 20%," said Aditya Mittal at a World Trade Organization event,
adding that this would drive up the cost of an average car by around $100-$200.
"But again, 10 to 20% for the steel industry is a lot because we have low
margins. ...If someone comes in and undercuts, and then steel companies which
are producing decarbonized steel will not have a viable business mode," he
added.
ArcelorMittal, the world's second-largest steelmaker, has committed to being
carbon neutral by 2050.