Steel Climate-Aligned Finance Working Group
The steel sector emits roughly
emissions equivalent to the annual
emissions in India
Steel production is heavily coal-dependent and lacks existing cost-competitive low-carbon alternatives.
The sector’s carbon intensity raises expectations of and from financial institutions to support its decarbonization, but to date, common tools to support steelmakers effectively in this regard have been lacking.
As a result, leading lenders to the global steel industry—ING, Citi, Goldman Sachs, Societe Generale, Standard Chartered and UniCredit—are working together to develop a climate-aligned finance agreement to more effectively support the decarbonization of steelmaking.
How It's Done
To forge this framework, several banks have formed the Steel Climate-Aligned Finance Working Group, led by ING and Societe Generale, and facilitated by RMI’s Center for Climate-Aligned Finance. The Working Group will apply best efforts for multi-stakeholder engagement through:
Collaborating with other initiatives on the Expert Committee to invite technical guidance from experts in the field
Consulting a review group of peer banks to ensure broader representation
Seeking consensus from their steel sector clients to enable industry support
The Working Group ultimately aims to set global best practices on climate for financial institutions that facilitate steelmaking. Towards this end, we intend to enroll other banking signatories in a final climate-aligned finance agreement to be released at the United Nations Climate Change Conference in November 2021 (COP26).
This Working Group on climate-aligned finance is one of several workstreams within the Net-Zero Steel Initiative (NZSI). NZSI comprises some of the world’s largest steel producers and suppliers, under the umbrella of the Mission Possible Partnership.
If you are interested in learning more, please contact Lucy Kessler [email protected].