Expert opinion | Zhang Longqiang: Carbon reaches its peak, carbon neutrality-starting a new journey of low-carbon steel

1. Low-carbon development background

On September 22, 2020, at the 75th United Nations General Debate Conference, General Secretary Xi Jinping solemnly promised: “China will increase its nationally determined contributions, adopt more powerful policies and measures, and strive to reach the peak of carbon dioxide emissions by 2030. Strive to achieve carbon neutrality by 2060". On December 12, the speech at the Climate Ambition Summit further announced that by 2030, China’s carbon dioxide emissions per unit of GDP will drop by more than 65% from 2005, and non-fossil energy will account for about 25% of primary energy consumption. , The forest stock volume will increase by 6 billion cubic meters over 2005, and the total installed capacity of wind power and solar power will reach 1.2 billion kilowatts or more. In the context of global low-carbon development, General Secretary Xi Jinping’s commitment has clarified the direction for the global response to climate change and the green and low-carbon development of the steel industry. The “carbon peak and carbon neutrality” of the steel industry will start a new journey of low-carbon development.

2. Opportunities and challenges coexist

China’s steel industry is a basic raw material industry with a large production base and intensive energy consumption. It is a major carbon emitter in my country’s manufacturing industry. Taking the road of low-carbon development is not only related to the survival and development of China’s steel industry, but also China’s commitment to fulfill its commitments. Responsibility. As the European Union proposes to impose a “carbon border adjustment tax” and the domestic carbon emission rights trading market is officially launched, the steel industry must be fully prepared to meet challenges while seizing the opportunity of green and low-carbon development to accelerate high-quality development. To lay a solid foundation for building a strong steel country in an all-round way and leading the world in steel. On February 10, 2021, the China Iron and Steel Association issued the "Iron and Steel Responsibility, Starting a New Low-Carbon Journey-Proposal for Promoting Low-Carbon Action in the Steel Industry", and the curtain on low-carbon action in the steel industry has been opened.

In 2020, global crude steel production reached 1.864 billion tons, down 0.9% year-on-year, and China's crude steel output reached 1.053 billion tons, an increase of 5.2% year-on-year, accounting for 56.5% of global crude steel output, reaching a new high. China’s steel industry has conscientiously implemented the CPC Central Committee’s dual-line combat requirements of “controlling the epidemic and stabilizing operations”, maintaining a good overall operating situation, and playing the role of “ballast stone” and “stabilizer” in the steady development of the national economy and industry. The resumption of work and production, the realization of positive economic growth and social stability have made important contributions. In 2020, although China's crude steel output continues to grow, the level of energy conservation and environmental protection of enterprises continues to improve. In the process of implementing ultra-low emission transformation, the comprehensive energy consumption per ton of steel of steel enterprises is 545.27kgce/t, a year-on-year decrease of 1.18%. Carbon emissions are closely related to energy consumption. The decline in energy consumption per ton of steel indicates that Chinese steel companies’ carbon emissions per ton of steel are also declining year-on-year, but the rapid growth of crude steel production has led to a continuous increase in total carbon emissions. The global iron and steel industry’s carbon emissions account for about 8% of the global energy system’s emissions. As the Chinese iron and steel industry is dominated by the blast furnace-converter long process and the energy structure is dominated by fossil energy such as coal, its carbon emissions account for the country’s carbon emissions. About 15% of the total amount, it has become an important body responsible for the implementation of carbon emission reductions. In the future, it will face tremendous pressure for low-carbon transition. It is an unprecedented challenge to achieve the goal of carbon neutrality.

During the "14th Five-Year Plan" period, the steel industry will face the "relative constraint" of carbon emission intensity to the "absolute constraint" of total carbon emissions. At the same time, it may also face more international challenges from the "carbon economy" and accelerate the low-carbon transition. It is imperative. Under the constraints of carbon peak and carbon neutrality, on the one hand, it will accelerate the promotion of the steel industry to improve production processes, update production equipment and use low-carbon energy, and quickly realize the low-carbon transformation of the steel industry and energy structure; on the other hand, it can promote the steel industry Enterprises take the initiative to innovate, abandon high-carbon emission products and businesses, and develop deep decarbonization and zero-carbon technologies. In the tide of low-carbon transformation, small and medium-sized enterprises with high energy consumption and low efficiency will be eliminated, and large-scale enterprises with strong strength will further enhance their market competitiveness through low-carbon innovation, thereby promoting the overall development of China’s steel industry towards high-quality development. China has become an all-round steel powerhouse. In addition, with the official launch and smooth operation of the national carbon trading market, the steel industry and other high-carbon emission industries will surely be included in the national carbon trading market, and China will become the world's largest carbon trading market by then. For the steel industry, the scale of carbon assets is huge. How to actively adopt market-oriented means to fully develop the value of carbon assets and form new profit growth points is of great significance for achieving low-carbon and high-quality development.

3. Prospects for low-carbon policies and measures

The Central Economic Work Conference held at the end of 2020 has listed “Doing a Good Job in Carbon Peaking and Carbon Neutrality” as one of the eight key tasks in 2021. Under the constraints of the carbon peak target, the Ministry of Industry and Information Technology clearly stated at the National Industry and Information Work Conference: resolutely reduce crude steel output and ensure that crude steel output declines year-on-year. A correct understanding of carbon peaking and carbon neutrality is a necessary prerequisite for formulating low-carbon policies and measures and implementing low-carbon actions. Carbon peaking does not simply mean that carbon emissions reach a peak at a certain point in time, but a process in which carbon emissions first enter a plateau and may fluctuate within a certain range, and then enter a stage of steady decline; the so-called carbon neutrality is not There is no carbon emission at all, but the amount of carbon emission and the amount of carbon absorption or removal offset each other, reaching a state of equilibrium. The peak of carbon emissions is the basis and prerequisite for achieving carbon neutrality. The time of peaking and the height of the peak directly affect the length and difficulty of achieving carbon neutrality.

In summary, achieving carbon peak and carbon neutrality in the steel industry will not be achieved overnight, let alone a gust of wind, but a protracted battle for the entire industry, requiring overall planning and scientific advancement. For 2021, the key tasks of the iron and steel industry mainly include scientifically reducing production, advancing mergers and reorganizations, increasing energy conservation, and further improving energy efficiency, equipment levels, and productivity. During the "14th Five-Year Plan" period, the steel industry must further promote green and low-carbon production, continue to adjust the process structure and energy structure, and promote the continuous optimization of energy consumption structure through industrial structure adjustment; it must further promote energy conservation and emission reduction, and implement more stringent energy efficiency. And emission standards; it is necessary to increase investment in low-carbon research and development; it is necessary to continuously optimize the industrial layout, promote international cooperation in production capacity, and strengthen carbon asset management.

(Source: Metallurgical Industry Information Standards Institute)