Outokumpu Unveils Key Strategies for Decarbonizing Steel Industry Amid Global Challenges

Outokumpu Unveils Key Strategies for Decarbonizing Steel Industry Amid Global Challenges

(IN BRIEF) Outokumpu is set to release a white paper addressing the future of the steel industry, highlighting the critical need for decarbonization and transformation amid growing geopolitical tensions. The report outlines five key shifts required to drive the green transition, including the importance of regulatory stability, circularity, and shared responsibility in green investments. While progress has been made in steel recycling, more effort is needed to meet the industry’s goal of reducing emissions by 90% by 2050. The report calls for stronger public support and a rebranding of the green transition to make it more relatable to consumers. Outokumpu will present its findings at Climate Week NYC 2024.

(PRESS RELEASE) HELSINKI, 19-Sep-2024 — /EuropaWire/ — Outokumpu, a global leader in sustainable stainless steel production, is set to release a new white paper that outlines the future challenges and necessary transformations within the steel industry. The white paper highlights how the green transition, driven by the urgent need to combat climate change, is reshaping the steel sector. In light of increasing geopolitical tensions, Outokumpu emphasizes the need for a stable, long-term regulatory framework to support the industry’s decarbonization efforts.

The steel industry, which was valued at $928 billion in 2023 and produced roughly 2 billion tons of steel, currently contributes around 10% of global greenhouse gas emissions. As global demand for energy and steel remains significant, the industry is under increasing pressure to reduce emissions by 90% by 2050, compared to 2022 levels. This monumental shift will require a comprehensive transformation across the global steel value chain.

Outokumpu’s report identifies five key shifts that must occur to facilitate this green transition, focusing on decarbonization, regulatory stability, circular economy practices, shared responsibility for green investments, and repositioning the green transition to gain broader public support. These changes are crucial for accelerating sustainable industrial growth while maintaining competitiveness.

Johann Steiner, Executive Vice President for Sustainability, Strategy, and People at Outokumpu, remarked, “The steel industry’s strategic importance has become even more prominent as nations navigate both the green transition and rising geopolitical challenges. While the current focus is on reducing carbon emissions, future challenges will require a broader approach, addressing various environmental and social factors.”

The report underscores the steel industry’s progress toward circularity, with 85% of end-of-life steel being collected for recycling. However, only 30% of this is used to produce new steel, leaving room for improvement. According to the report, long-term policies and government support are essential for accelerating the green transition. It also calls for a rebranding of the green transition to make it more relatable and tangible for the general public, shifting the narrative towards more sustainable consumption habits.

Jen Carson, Head of Industry at Climate Group, supported Outokumpu’s call for immediate action and collaboration, noting that achieving net-zero emissions in the steel industry is one of the critical challenges of the 21st century. Effective partnerships across the entire value chain—from steelmakers to policymakers and investors—are essential to achieving this goal.

Outokumpu will be participating in Climate Week NYC from September 22-29, 2024, where it plans to share key insights from the white paper and take an active role in global climate discussions to accelerate the necessary changes in the steel industry.

The white paper, commissioned by Outokumpu, was produced by Swedish consultancy Kairos Future between June and September 2024, with a focus on the EU and U.S. markets.

About Kairos Future

Kairos Future is a Swedish consultancy specializing in strategic intelligence, foresight, and scenario planning. Through trend analysis, innovation, strategy, and software support for AI-driven analytics, we help our clients understand and shape their future. Founded in 1993, Kairos Future is headquartered in Stockholm and has offices and partners around the world. www.kairosfuture.com

About Climate Week NYC

Climate Week NYC is the time and place where the world gathers to showcase amazing climate action and discuss how to do more. Run by the international non-profit Climate Group, in partnership with the United Nations and the City of New York, Climate Week NYC annually brings together voices from across the spectrum to debate and implement climate action. With over 500 events taking place as part of the official events program and hosting the most significant leaders from business and government, Climate Week NYC is one of the largest annual climate summits of its kind attracting global awareness and participation.

Media Contact:

Outokumpu media desk
tel. +358 40 351 9840
email media(at)outokumpu.com

SOURCE: Outokumpu