On the one hand, these figures suggest that Indian steelmakers may well be among the best informed on CO2 in the emerging markets’ I&S sector, followed by China. But on the other, they also show that there is considerable scope for reduced emissions, and that the industry globally could do a lot more to cut its CO2 footprint. One factor delaying this is clearly the slow speed with which the UNFCCC makes decisions; another is the reluctance of some countries, such as the USA, to commit to a follow on to Kyoto.
SBB 25 October 2010 India has confirmed that it is the country with the most registered steel-related Clean Development Mechanism (CDM) projects, Steel Business Briefing understands. Indian sponge iron producer Shree Nakoda Ispat could earn up to 57,525 Kyoto carbon credits – currently worth more than $1m on the open market – every year for ten years, after it registered a biomass power plant on the CDM list of eligible projects.
SBB data shows that 45 Indian iron and steel projects, which could earn up to 4.4m Certified Emissions Reductions (CERs) annually, have now been registered on the UN Framework Convention on Climate Change’s (UNFCCC) CDM website. India accounts for over half of the 80 projects registered worldwide within the industry. China is second place with 29 projects.
The CERs can be sold on to companies which need them to account for their greenhouse gas emissions, with schemes such as Europe’s Emissions Trading System (ETS), thereby providing a financial incentive for steelmakers worldwide to implement emission-saving technologies.
Investors in CDM projects, including steelmakers and the Carbon Market Investors Association, have complained of delays in approving projects and receiving CERs, SBB notes. Many projects have been carried out, but are not yet registered on the UN’s CDM list.
Even out of the 80 projects registered in the steel industry, only 40 have actually received CERs. Globally, the iron and steel industry could earn up to 17.2m CERs/y, worth some $306.2m/y. However, to date, only 18.7m CERs have been granted to the industry over a period of about five years.