Wood Mackenzie, global research and consultancy group who supply data, analysis and consultancy advice looks at global decarbonisation and how scrap metal, including ELVs, has a critical role to play.
Metals producers have a critical role to play in global decarbonisation. Governments, investors and consumers are escalating pressure to reduce emissions. Increasing scrap consumption is the fastest way to reduce the overall carbon footprint for all metals. However, for different metals, emission reduction from increased scrap consumption occurs at different stages of production. This variability – combined with scrap quality, quantity, usability and cost considerations – means the role of scrap will not be the same for all metals.
At Wood Mackenzie, we believe that the share of scrap in meeting future end-use demand requirements across the metals industries will rise, but a coherent carbon policy will play an essential role in accelerating scrap consumption growth.
Ferrous scrap consumption must grow if steel emissions are to fall
For conventionally produced steel, most CO2 is emitted from blast furnace sites where iron ore is transformed into iron using coal. These emissions are direct – otherwise known as Scope 1. Around 70% of global steel is made using this method and the steel industry’s CO2 output accounts for just under 10% of global greenhouse gas emissions.
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