Researchers, on Tuesday, said that China is not meeting expectations in reducing the carbon footprint of its vast steel industry. They attributed this shortfall to declining demand, inadequate recycling rates, and persistent worries about excess production capacity, all of which impede the shift towards cleaner production methods.
Steel production worldwide contributes 8% of the world’s carbon dioxide emissions, with China making over half of it.
Despite China’s commitment to address emissions from its steel industry, it is falling behind on its targets to replace coal-fired blast furnaces with cleaner electric arc furnace (EAF) technology, which utilizes recycled scrap instead of iron ore.
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Beijing aimed to produce 15% of its crude steel using EAF technology by 2025 and increase that to 20% by the end of the decade.
However, as David Cachot, research director at consultancy Wood Mackenzie, reported, the proportion of steel produced via EAF was only 10% last year, slightly up from 9.7% the previous year.
According to a report by the US think tank Global Energy Monitor (GEM). However, China’s current electric arc furnace (EAF) capacity is approximately 150 million metric tons, and its utilization rates have remained low.
GEM noted that while China’s 15% target is somewhat modest, achieving it would still result in an 8.7% emissions reduction from the Chinese steel sector, with carbon dioxide emissions per ton being about 38% lower compared to traditional blast furnace products.
“China has committed to developing greener technologies, but each investment in blast furnace technology … represents a significant capital investment on the part of steelmakers and thus (there is) a doubling down on coal-based technology,” said Jessie Zhi, co-author of the GEM report.
