The recent COP27 conference has
received a mixed reaction from observers. On the one hand, it was praised for
its breakthrough agreement to provide “loss and damage” funding to help the
countries on the front line of climate change cope with the natural disasters
and biodiversity loss they are likely to suffer.
On the other hand, however, critics
say that the conference failed to agree on the mechanisms for reaching net zero
emissions. The final agreement signed by members does not pledge to curb the
use of fossil fuels, as suggested by India and the European Union.
However, a deep dive into the
12-month action plan agreed at COP27 shows that it does contain some new ideas
which many observers have overlooked.
The document includes plans to ramp up hydrogen production for cleaner energy, as well as a package of actions to increase the supply of low-carbon material for public infrastructure projects.
In total, the sectors included in
the plan account for more than 50% of global greenhouse gas emissions. As well
as hydrogen production, sectors such as agriculture, road transport, and power
all feature.
The Breakthrough Agenda also sets out
ambitious plans to decarbonize steel production. This is a particularly
significant area, given that the steel sector is responsible for 7-9% of all fossil fuel-based
carbon-dioxide emissions.
Results will be presented at COP28
in Dubai next November, where delegates hope to see a significant boost to the
credibility and transparency of the green steel sector.
Standardizing steel
The thrust of the plan is to
stimulate investment in green steel by developing robust definitions for
low-emission and near-zero-emission steel.
Still, the scale of the challenge
ahead is enormous. The International Energy Agency alongside energy research
consultancy Wood Mackenzie estimate that a total investment of about US$1.4
trillion will be needed to decarbonize the iron and steel sector by 2050.