Automakers' Pledge for Fossil-Free Steel: A 2% Commitment
Key Ideas
  • Only four major automakers have committed to procure fossil-free steel by 2030, covering 2% of their global steel usage.
  • Fossil-free steel production can reduce emissions by 97%, making it a crucial element in reducing the environmental impact of vehicle manufacturing.
  • Automakers and policymakers can accelerate the shift to fossil-free steel by demonstrating demand, optimizing vehicle design for recyclability, and increasing transparency in steel production.
  • Policy options include subsidies for clean steel production, emissions trading systems, and incentivizing the use of fossil-free steel in vehicle manufacturing.
Among major automakers operating in Europe and North America, only four have made commitments to procure fossil-free steel by the year 2030, which currently only covers 2% of their global steel usage. When including pledges for steel with reduced GHG emissions, the coverage increases to 4%. Fossil-free steel has the potential to significantly reduce greenhouse gas emissions by up to 97% compared to conventional steel production methods. This reduction is crucial in the context of vehicle manufacturing where emissions from steel production play a significant role. The article highlights that automakers in these regions currently source from steel producers with high GHG emission intensities, particularly from coal-reliant producers. To accelerate the transition to fossil-free steel, automakers are encouraged to demonstrate demand, optimize vehicle design for recyclability, and increase transparency in steel production. Policymakers are also urged to consider options such as providing subsidies for clean steel production, implementing emissions trading systems, and incentivizing the use of fossil-free steel in vehicle manufacturing through regulatory measures. These actions aim to drive the automotive industry towards a more sustainable steel supply chain, ultimately reducing the environmental impact of vehicle production.
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