The Role of Sectoral Approaches and Agreements: Focus on the Steel Sector in China and India

This report examines the potential for sectoral approaches and agreements to reduce greenhouse gas (GHG) emissions within the iron and steel sectors of China and India, arguing that national approaches combining price and non-price incentives are more viable than transnational trading or carbon pricing alone.

• China and India are currently achieving emission reductions that exceed what would be expected from stock turnover alone, though the potential effectiveness of sectoral agreements to further incentivize these reductions remains unclear and requires more experience regarding abatement potential.
• The report suggests that a national approach utilizing both price and non-price incentives is preferable because relying solely on carbon prices derived from apportioning sector targets to individual plants is unlikely to produce significant reductions. Additionally, transnational trading is not considered a viable political option in the medium term.
• The study identifies a trade-off in scheme design between targeting the sector as a whole and targeting specific abatement categories. While a single sector target allows for optimization across options, targeting the four identified abatement categories would reduce risks associated with uncertainties in business-as-usual emissions and abatement costs and potentials.

APA

Wooders,, P. (2010). The Role of Sectoral Approaches and Agreements: Focus on the Steel Sector in China and India. International Institute for Sustainable Development. https://www.iisd.org/publications/report/role-sectoral-approaches-and-agreements-focus-steel-sector-china-and-india-full

Chicago

Wooders,, Peter. The Role of Sectoral Approaches and Agreements: Focus on the Steel Sector in China and India. International Institute for Sustainable Development, 2010. https://www.iisd.org/publications/report/role-sectoral-approaches-and-agreements-focus-steel-sector-china-and-india-full.

Wikipedia

{{cite report |last1=Wooders, |first1=Peter |title=The Role of Sectoral Approaches and Agreements: Focus on the Steel Sector in China and India |publisher=International Institute for Sustainable Development |date=4 March 2010 |url=https://www.iisd.org/publications/report/role-sectoral-approaches-and-agreements-focus-steel-sector-china-and-india-full |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wooders2010role, author = {Wooders,, Peter}, title = {{The Role of Sectoral Approaches and Agreements: Focus on the Steel Sector in China and India}}, institution = {International Institute for Sustainable Development}, year = {2010}, month = mar, url = {https://www.iisd.org/publications/report/role-sectoral-approaches-and-agreements-focus-steel-sector-china-and-india-full}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }