Financial institutions need to address steelmaking’s coal addiction

The document calls on financial institutions to address the steel industry's reliance on metallurgical coal, which accounts for 70% of global steel production and contributes 11% of global CO2 emissions. It argues that because steel plants have long lifetimes, investment decisions made in the 2020s are critical for achieving carbon neutrality by 2050. The author urges financial institutions to stop funding new metallurgical coal mines and coal-based steel projects, while pushing companies to avoid 'two-speed decarbonization' strategies where green projects are developed in Europe and Canada while coal-based facilities continue in India.

• The steel industry is a significant source of global emissions, contributing 7% of greenhouse gas (GHG) emissions and 11% of CO2 emissions, largely due to the use of metallurgical coal (also known as coking coal or met coal) in primary steel production, which represents 70% of global output.
• Most financial institutions currently exclude metallurgical coal from their coal sector policies, focusing only on thermal coal based on the outdated belief that sustainable alternatives for steelmaking do not exist.
• Transitioning the global steel base to net-zero compliant technologies will require an additional annual investment of US$8–US$11 billion, totaling US$235–US$335 billion cumulatively by 2050.
• There is a risk of 'two-speed decarbonization' where companies implement green projects in certain regions while expanding coal-based facilities in others; for example, ArcelorMittal is developing green hydrogen projects in Europe and Canada while developing coal-based facilities in India.
• Financial institutions are urged to steer clients away from carbon capture utilization and storage (CCUS), which the document describes as a limited solution that perpetuates fossil fuel reliance, citing ArcelorMittal's December 2022 CCU project in Ghent, Belgium.

APA

Martin, L. (2023). Financial institutions need to address steelmaking’s coal addiction. Reclaim Finance. https://reclaimfinance.org/site/en/2023/02/23/financial-institutions-need-to-address-steelmakings-coal-addiction/

Chicago

Martin, Léo. Financial institutions need to address steelmaking’s coal addiction. Reclaim Finance, 2023. https://reclaimfinance.org/site/en/2023/02/23/financial-institutions-need-to-address-steelmakings-coal-addiction/.

Wikipedia

{{cite press release |last1=Martin |first1=Léo |title=Financial institutions need to address steelmaking’s coal addiction |publisher=Reclaim Finance |date=23 February 2023 |url=https://reclaimfinance.org/site/en/2023/02/23/financial-institutions-need-to-address-steelmakings-coal-addiction/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{martin2023financial, author = {Martin, Léo}, title = {{Financial institutions need to address steelmaking’s coal addiction}}, publisher = {Reclaim Finance}, year = {2023}, month = feb, url = {https://reclaimfinance.org/site/en/2023/02/23/financial-institutions-need-to-address-steelmakings-coal-addiction/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }