(Bloomberg) — China did not permit any coal-based steel production projects in the first half of the year, for the first time since it announced its key climate neutrality goals in 2020, according to a report released Thursday.
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All of the 7.1 million tonnes of annual steelmaking capacity permitted by provincial governments in the first half of the year used electric arc furnaces, a cleaner process that runs on recycled scrap and electricity, the Center for Energy and Clean Air Research said in its report released on Thursday.
Greening the steel industry, China’s second-largest source of carbon emissions at 15%, is a vital part of the country’s plan to become carbon neutral by 2060. In recent years, Beijing has taken steps including reducing crude steel production and promoting cleaner steel production technologies. . But challenges remain as factories face low margins in a weak economy.
The decision to stop allowing coal-based projects could be a turning point in the progress of steel decarbonization in China, CREA said. This will keep China on track to cut 200 million tons of carbon dioxide from the steel industry by 2025, a 10% drop from the 2020 peak, the research organization said.
The world’s largest steel user announced in May a new 2024-2025 action plan for the sector, which sets an emissions reduction target of 53 million tons and restricts exports of low-value iron and steel products.
“As steel demand in China peaks and more scrap becomes available, this presents us with a great opportunity to reduce emissions over the next 10 years,” Xinyi Shen, the lead author, said in the report.
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