Daily Climate News - March 27

Decarbonizing Steel; Managing soil salinity; ESG in Asia-Pacific

Mar 28, 2024

Decarbonizing Steel

The demand for steel is expected to grow 30% by 2050. The industry contributes 8% of global emissions.

Rocky Mountain Institute (RMI) developed the Sustainable STEEL Principles (SSP) to help banks assess the climate alignment of their steel portfolios. In its first annual report on the portfolios of 5 SSP signatories - Citi, Crédit Agricole CIB, ING, Société Générale, Standard Chartered, and UniCredit - RMI finds:

nearly two-thirds of all announced steel projects worldwide still fall into the high-emissions category
steelmakers in emerging markets and those using blast furnace operations are less aligned with Climate targets
UniCredit and Crédit Agricole CIB’s steel portfolio companies are most aligned with IEA’s net-zero emissions scenario.

Some approaches to reduce emissions in steelmaking are - using hydrogen in place of coal for reducing iron, electricity from renewable sources, recycling energy produced, using carbon capture technology, and switching to electric arc furnaces.

A recent study, evaluated the potential of Australia - world’s largest iron ore producer - to export green steel. Using a mix of wind, solar, battery storage and hydrogen, models show Australia could produce green steel at AU$900 per tonne by 2030 and AU$750 per tonne by 2050.

ET Energy | RMI | RMI First Sustainable STEEL Principles Report (PDF) |

Green Steel: Synergies between the Australian iron ore industry and production of green hydrogen

Nuclear technology to manage soil salinity

Soil salinity - increased levels of mineral salts in soils - leads to poor crop yields and eventual loss of agricultural land. Low rainfall, poor farming practices and rising sea levels all contribute to this.

The International Atomic Energy Agency (IAEA) estimates that globally, about 2000 hectares of arable land is lost to soil salinization. The condition is particularly severe in the Middle East and Central Asia due to low rainfall.

The IAEA, together with FAO (Food and Agricultural Organisation), works with countries to use nuclear-based techniques for managing soil salinity. These include

measuring fertiliser use by using isotopes of nitrogen
tracking water absorption in plants vs losses to surface evaporation using isotopes of oxygen and hydrogen
using gamma rays and X-rays to induce mutations in crops to develop varieties that can grow in saline soils

Research supported by IAEA/FAO in Pakistan for the past 3 years has helped reclaim half of the ~550 acres of land under testing.

Scientists can now assess soil conditions and determine the correct amount of fertilizer and water, and the proper plants, for a particular field. Using nuclear plant breeding techniques, crop varieties can be developed that are more tolerant to new climatic conditions, including increasingly saline soil. Areas that were previously barren can now be farmed again.
There is also another advantage to this kind of farming. Salt-tolerant plants are not only able to survive in saline soil – they can also eventually change the composition of the soil itself, making it suitable for other types of crops again.

IAEA Press Release | IAEA - Guideline for Salinity Assessment, Mitigation and Adaptation Using Nuclear Related Techniques

ESG in Asia Pacific

Consulting firm Kearney has published findings from a survey of ~1000 executives in 9 Asia-Pacific (APAC) countries on their companies’ sustainability targets.

Key findings from the executives’ responses:

In nearly 20% organisations, people within the company are unaware of the net-zero targets
“net-zero” does not have a singular, clear definition
more than 50% seek more government support in meeting sustainability goals
there is lack of clarity in where to start
complexity of working with multiple groups - regulatory bodies, suppliers, customers is a major challenge
more than 70% see “sustainability as a cost of doing business rather than an opportunity to create value”

Companies’ perceptions of sustainability as primarily a cost or a risk is also reflected in the lack of alignment with corporate purpose and values. This is highlighted by three-quarters of executives, who say their sustainability ambitions are largely influenced by meeting societal expectations and keeping up with competition rather than alignment with corporate purpose or vision.

pv magazine | Kearney Insights

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Europe procured 60% of its electricity from renewables in January & February 2024, largely due to rise in wind power capacity in 2023. Power Technology
Israel reports a new record in electricity from renewables - 51% of total production was from wind and solar on March 12, 2024. pv magazine
Hydropower from Western states in USA - which contribute 60% of the country’s hydroelectricity - fell by 11% in the 2022-23 water year (ends September 30). This is due to lower precipitation and early melting of snowpacks because of higher than average temperatures. Recharge
China-based EV maker BYD has posted record annual profits of $4.16 billion for 2023. BYD is also the first EV manufacturer to sell 5 million hybrid and all-electric vehicles, cumulatively. ET Energy
Water shortages and changing weather patterns are affecting crop yields in India, leading to demands for higher Minimum Support Price (MSP). Climate Home News
Japan is working on a draft for an aircraft industry strategy that may include plans to build a hydrogen-powered passenger jet by 2035. ET Energy | Asia News