INTERNATIONAL SECTORAL APPROACHES AND AGREEMENTS: CASE STUDIES OF THE STEEL SECTOR IN CHINA, INDIA AND JAPAN

The briefing argues that the steel sector, which accounts for 5% of global CO2 emissions, requires a dedicated international framework to prevent emissions growth driven by demand. It recommends a 'bottom-up' approach using existing national policies—such as China's energy efficiency targets and India's 'Perform, Achieve and Trade'—as building blocks. To overcome competitiveness fears and carbon leakage, the author proposes establishing a steel-specific negotiation forum within the UNFCCC. This forum would address six abatement categories, ranging from closing inefficient plants to developing breakthrough technologies, and would integrate technical industry expertise to ensure ambitious national commitments.

• The steel sector contributes 5% of global carbon dioxide emissions, and despite efficiency gains, emissions are expected to rise due to increasing demand.
• International sectoral agreements should be developed using a 'bottom-up' approach based on existing national policies rather than the 'top-down' UNFCCC method. Examples of these building blocks include Japan's voluntary agreements, India's "Perform, Achieve and Trade", and China's energy efficiency targets.
• Carbon pricing alone is insufficient to realize emission reduction opportunities in the steel sector; complementary policies are required. The study identifies six abatement categories: closing inefficient plants, improving energy efficiency in non-obsolete plants, using best available technology for new plants, increasing recycled scrap use, adopting Carbon Capture & Storage (CCS), and developing breakthrough technologies.
• To address concerns regarding competitiveness and carbon leakage—given that 40% of steel is traded internationally—the author recommends creating a steel-specific negotiation forum within the UNFCCC. This forum should include government and industry representatives and possess the technical expertise to assess national commitments.

APA

Wooders, P. (2010). INTERNATIONAL SECTORAL APPROACHES AND AGREEMENTS: CASE STUDIES OF THE STEEL SECTOR IN CHINA, INDIA AND JAPAN. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/sa_policy_recommendations_final.pdf

Chicago

Wooders, Peter. INTERNATIONAL SECTORAL APPROACHES AND AGREEMENTS: CASE STUDIES OF THE STEEL SECTOR IN CHINA, INDIA AND JAPAN. International Institute for Sustainable Development, 2010. https://www.iisd.org/system/files/publications/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=International Institute for Sustainable Development |date=27 July 2010 |url=https://www.iisd.org/system/files/publications/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 = {International Institute for Sustainable Development}, year = {2010}, month = jul, url = {https://www.iisd.org/system/files/publications/sa_policy_recommendations_final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }