GENEVA: Taking carbon out of steel production would increase prices by about 10%-20%, Chief Executive Officer ArcelorMittal said on Thursday, adding that it could make green producers’ business models viable.
The global steel industry is one of the most energy-intensive industries worldwide, accounting for around 8% of global annual carbon dioxide emissions, and is under pressure to reduce this.
“In our initial estimates… the cost of decarbonizing the steel is not that prohibitive, so the system can take it. I think the cost of steel will go up by 10 to 20%,” said Aditya Mittal at a World Trade Organization event, saying it would raise the price of an average car by about $100-$200.
“But again, 10 to 20% is a lot for the steel industry because we have low margins. … If someone comes and undercuts, and then the steel companies that are producing decarbonized steel, they have viable There will be no business mode,” he added.
ArcelorMittal, the world’s second largest steelmaker, has committed to becoming carbon neutral by 2050.
The global steel industry is one of the most energy-intensive industries worldwide, accounting for around 8% of global annual carbon dioxide emissions, and is under pressure to reduce this.
“In our initial estimates… the cost of decarbonizing the steel is not that prohibitive, so the system can take it. I think the cost of steel will go up by 10 to 20%,” said Aditya Mittal at a World Trade Organization event, saying it would raise the price of an average car by about $100-$200.
“But again, 10 to 20% is a lot for the steel industry because we have low margins. … If someone comes and undercuts, and then the steel companies that are producing decarbonized steel, they have viable There will be no business mode,” he added.
ArcelorMittal, the world’s second largest steelmaker, has committed to becoming carbon neutral by 2050.
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