G20 SFWG input paper: The role of policymakers in mobilising private finance to ensure a credible and just transition in steel and cement

The report highlights that steel and cement are the largest industrial emitters, accounting for over 7% and 6% of global CO2 emissions in 2022. It argues that credible corporate transition plans are essential for unlocking private capital, particularly through sustainability-linked bonds (SLBs). An analysis of 20 companies reveals that while 90% have published transition plans, there is a significant lack of consistency in financing disclosure and a critical gap in concrete 'just transition' objectives. The document emphasizes that emerging markets will lead demand growth and hold the majority of coal-based blast furnace capacity requiring reinvestment by 2030, making international coordination and supportive public procurement policies vital for a credible transition.

• Steel and cement are the primary sources of industrial emissions, contributing more than 7% and 6% of global CO2 emissions, respectively, in 2022. Their emission profiles differ: steel relies heavily on coal in blast furnaces, while cement emissions are largely driven by chemical reactions during clinker calcination, which cannot be solved by fuel substitution alone.
• Emerging markets (EM) are central to the global transition because they will lead the expected demand increases for steel (30%) and cement (45%) by 2050. Furthermore, over 70% (1091 Mt/yr) of global coal-based blast furnace capacity requires reinvestment by 2030, with the majority of this occurring in EM.

APA

Passaro, F. (2024). G20 SFWG input paper: The role of policymakers in mobilising private finance to ensure a credible and just transition in steel and cement. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/The-role-of-policymakers-in-mobilising-private-finance-to-ensure-a-credible-and-just-transition-in-steel-and-cement.pdf

Chicago

Passaro, Fabio. G20 SFWG input paper: The role of policymakers in mobilising private finance to ensure a credible and just transition in steel and cement. Climate Bonds Initiative, 2024. https://www.climatebonds.net/files/documents/publications/The-role-of-policymakers-in-mobilising-private-finance-to-ensure-a-credible-and-just-transition-in-steel-and-cement.pdf.

Wikipedia

{{cite report |last1=Passaro |first1=Fabio |title=G20 SFWG input paper: The role of policymakers in mobilising private finance to ensure a credible and just transition in steel and cement |publisher=Climate Bonds Initiative |date=July 2024 |url=https://www.climatebonds.net/files/documents/publications/The-role-of-policymakers-in-mobilising-private-finance-to-ensure-a-credible-and-just-transition-in-steel-and-cement.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{passaro2024g20, author = {Passaro, Fabio}, title = {{G20 SFWG input paper: The role of policymakers in mobilising private finance to ensure a credible and just transition in steel and cement}}, institution = {Climate Bonds Initiative}, year = {2024}, month = jul, url = {https://www.climatebonds.net/files/documents/publications/The-role-of-policymakers-in-mobilising-private-finance-to-ensure-a-credible-and-just-transition-in-steel-and-cement.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }