Iron and Steel Sector

Environmental sustainability and climate change are among the most significant global challenges of our time. Industrial sectors, especially those with high energy consumption, play a crucial role in addressing this issue. The iron and steel sector is a major contributor to greenhouse gas emissions due to its energy-intensive production processes. However, international frameworks such as the EU Green Deal and the Paris Climate Agreement are accelerating steps taken by the iron and steel sector to reduce its environmental impact, and regulations such as the Carbon Border Adjustment Mechanism (CBAM) are increasing the importance of these efforts.

Carbon footprint calculation is a critical process for the iron and steel sector to understand and assess the environmental impact of its activities. Production processes, energy consumption, and the processing of raw materials are areas where greenhouse gas emissions are concentrated. These calculations are crucial for determining which stages are responsible for the most emissions, developing effective strategies, and setting targets.

Carbon footprint reporting allows companies to share their environmental impacts with stakeholders and act in accordance with the principle of accountability. This transparency can build trust among customers, investors, and other stakeholders and emphasize the sector's sustainability commitments.

The iron and steel sector can lay the foundations for both environmental and financial sustainability through decarbonization strategies. These strategies may include increasing the use of renewable energy, improving energy efficiency, optimizing material use, and developing innovative technologies to reduce emissions. The goals of the EU Green Deal encourage the iron and steel sector to put more effort into carbon reduction, and the Paris Climate Agreement reminds of international commitments.

The Carbon Border Adjustment Mechanism (CBAM), which will start on October 1, 2023, is an important step in addressing the issue of carbon leakage in the iron and steel sector. With the implementation of CBAM, it is mandatory for the iron and steel sector to calculate and report its carbon footprint every three months.

The iron and steel sector has the potential to contribute to reducing its environmental impact and building a sustainable future through carbon footprint calculation, reporting, and decarbonization strategies. International commitments such as the EU Green Deal and the Paris Climate Agreement guide the sector in this direction. The Carbon Border Adjustment Mechanism (CBAM) imposes more responsibility on the sector and serves as an essential tool to support environmental sustainability. As the iron and steel sector progresses toward carbon reduction goals, it can inspire other industries to contribute to the construction of a sustainable future.