INTERNATIONAL SECTORAL APPROACHES AND AGREEMENTS: CASE STUDIES OF THE STEEL SECTOR IN CHINA, INDIA AND JAPAN
Summary
The policy brief argues that the steel sector, responsible for 5% of global CO2 emissions, requires a dedicated international negotiation forum within the UNFCCC to overcome competitiveness fears and leakage. It proposes a 'bottom-up' approach where existing national policies—such as China's energy efficiency targets and India's 'Perform, Achieve and Trade'—serve as building blocks. The author identifies six abatement categories ranging from closing inefficient plants to developing breakthrough technologies, noting that carbon pricing alone is insufficient to realize these opportunities. The brief recommends that the UNFCCC establish a steel-specific forum involving both government and industry to coordinate technology transfers, minimum standards for new plants, and funding for Carbon Capture & Storage (CCS).
Key insights
- The steel sector accounts for 5% of global carbon dioxide emissions, and emissions are expected to rise due to increasing demand despite efficiency improvements.
- International sectoral agreements should be developed using a 'bottom-up' approach that utilizes existing national policies as foundations, rather than the 'top-down' approach used by the UNFCCC.
- National commitments alone are likely insufficient to reduce greenhouse gas emissions because countries fear losing competitiveness; 40% of steel is traded internationally, making it highly susceptible to leakage.
- The study identifies six categories for emission abatement: closing inefficient plants, improving efficiency at non-obsolete plants, using best available technology for new plants, increasing recycled scrap use, adopting Carbon Capture & Storage (CCS), and developing breakthrough technologies. These opportunities generally cannot be achieved through carbon pricing alone.
- The author recommends that the UNFCCC establish a steel-specific negotiation forum with government and industry representation to assess national commitments and investigate international agreements on the six abatement categories.
Cite the original document
- APA
- Wooders, P. (2010). INTERNATIONAL SECTORAL APPROACHES AND AGREEMENTS: CASE STUDIES OF THE STEEL SECTOR IN CHINA, INDIA AND JAPAN. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2014/11/sa-policy-recommendations-final.pdf
- Chicago
- Wooders, Peter. INTERNATIONAL SECTORAL APPROACHES AND AGREEMENTS: CASE STUDIES OF THE STEEL SECTOR IN CHINA, INDIA AND JAPAN. Climate Strategies, 2010. https://climatestrategies.org/wp-content/uploads/2014/11/sa-policy-recommendations-final.pdf.
- Wikipedia
- {{cite report |last1=Wooders |first1=Peter |title=INTERNATIONAL SECTORAL APPROACHES AND AGREEMENTS: CASE STUDIES OF THE STEEL SECTOR IN CHINA, INDIA AND JAPAN |publisher=Climate Strategies |date=27 July 2010 |url=https://climatestrategies.org/wp-content/uploads/2014/11/sa-policy-recommendations-final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{wooders2010international, author = {Wooders, Peter}, title = {{INTERNATIONAL SECTORAL APPROACHES AND AGREEMENTS: CASE STUDIES OF THE STEEL SECTOR IN CHINA, INDIA AND JAPAN}}, institution = {Climate Strategies}, year = {2010}, month = jul, url = {https://climatestrategies.org/wp-content/uploads/2014/11/sa-policy-recommendations-final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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