Nearly 25 million CERs have been issued to emissions reduction projects in the steel industry so far. However, this number pales into insignificance compared with some othersectors. Some blame the bureacracy of the system and delays in issuance for holding back projects. But the industry has also been slow to utilise some of the opportunities presented to it.
SBB 18 April The UN’s Clean Development Mechanism (CDM) could accept more steel industry greenhouse gas emission reduction projects because of a decision to revise a methodology, made at the latest meeting of the CDM’s executive board.
Changes to the methodology (ACM0012) which relates to projects that use waste gas, heat and pressure from any industrial facility (that could include coking, sintering, iron making and steelmaking) are designed to make it more broadly applicable, a UN official tells SBB.
Steelmakers can submit projects to the CDM using set methodologies and then earn Certified Emissions Reduction (CER) carbon credits. Some 23.8m CERs, with a market value of around €308.4m ($446m) have been granted to the industry to date, Steel Business Briefing estimates.
Kishor Rajhansa, programme officer at the UN Framework Convention on Climate Change (UNFCCC) introduced several CDM methodologies that could potentially be used by iron and steel plants to earn carbon credits at SBB’s recent Green Steel Strategies event.
He also invited steelmakers to submit new standardised baselines for their sector to the CDM Executive Board. These could allow the industry to claim greater benefits from the CDM. He pointed out that ArcelorMittal has recently had a methodology for its Brazilian arm approved, that will allow it to earn carbon credits by using ocean-going barges instead of trucks to transport material.