Climate Bonds Standard for the Steel Industry

The Climate Bonds Standard and Certification Scheme is an easy-to-use screening tool that provides a clear signal to investors and intermediaries on the climate integrity of Certified Climate Bonds. A key part of the Standard is a suite of sector-specific eligibility Criteria. Each sector-specific Criteria sets climate change benchmarks for that sector that are used to screen assets and capital projects so that only those that have climate integrity, either through their contribution to climate mitigation, and/or to adaptation and resilience to climate change, will be certified. These sector-specific Criteria are determined through a multi-stakeholder engagement process and are subject to public consultation.

The eligibility criteria for the steel industry are underpinned by a long-term transition vision for the sector. A number of pathways, developed under rigorous scientific research have shown us what measures can make this possible, and inform the development of the steel sector criteria. Even though pathways provide a vision of the future based on assumptions, they allow a deeper insight into not only what can be done, but also what needs to be done in the industry to limit the global temperature increase to 1.5°C and keep the pledge made at the Paris Agreement.

The requirements set out in the Steel criteria aim at keeping steel production emissions within the IEA’s net zero pathway. The intent is to achieve this by establishing: assets that are already in alignment, capital investments that will enable steel production to achieve compliance, companies that have credible plans to get in line with the decarbonization pathway and emissions mitigation in existing facilities without locking out the targeted long run vision.

The Global efficiency Intelligence, LLC is providing technical expertise and support the Climate Bond Initiative in the development of Climate Bonds Standard criteria for the steel industry.