Decarbonization steel: not making the cut

Reclaim Finance analyzed 150 financial institutions and found that very few have adopted steel decarbonization targets, and those that have are characterized by significant flaws. Only 16 of 60 assessed banks have steel targets, most of which rely on intensity metrics rather than absolute emissions and exclude underwriting activities and Scope 3 emissions. The report argues that current targets are insufficient to prevent investment in high-carbon infrastructure, such as new blast furnaces and metallurgical coal mines.

• The steel sector is the largest industrial emitter of CO2, contributing 11% of global emissions due to its reliance on metallurgical coal.
• Financial institution engagement in steel decarbonization is minimal; out of 150 banks, insurers, and investors reviewed, only 16 banks have adopted a steel decarbonization target.
• Existing steel targets among financial institutions suffer from four primary weaknesses: a lack of combined absolute and intensity metrics, failure to cover underwriting activities, exclusion of Scope 3 emissions, and a lack of specific targets for methane emissions.
• Current targets are ineffective at preventing the financing of high-carbon infrastructure, as evidenced by MUFG financing new blast furnaces for ArcelorMittal and Nippon Steel in India despite having a steel decarbonization target.

APA

Martin, L. (2023). Decarbonization steel: not making the cut. Reclaim Finance. https://reclaimfinance.org/site/en/2023/08/23/decarbonization-steel-not-making-the-cut/

Chicago

Martin, Léo. Decarbonization steel: not making the cut. Reclaim Finance, 2023. https://reclaimfinance.org/site/en/2023/08/23/decarbonization-steel-not-making-the-cut/.

Wikipedia

{{cite report |last1=Martin |first1=Léo |title=Decarbonization steel: not making the cut |publisher=Reclaim Finance |date=23 August 2023 |url=https://reclaimfinance.org/site/en/2023/08/23/decarbonization-steel-not-making-the-cut/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{martin2023decarbonization, author = {Martin, Léo}, title = {{Decarbonization steel: not making the cut}}, institution = {Reclaim Finance}, year = {2023}, month = aug, url = {https://reclaimfinance.org/site/en/2023/08/23/decarbonization-steel-not-making-the-cut/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }