Working with policymakers to achieve the support necessary to accelerate decarbonisation
We are optimistic about the role policy can play in transitioning the steel industry to net-zero and, over time, creating the market conditions to make low and zero carbon-emissions steel as or more competitive than higher carbon-emissions steel. But we must be clear about the starting point; the market conditions necessary for this transition are not yet in place. Steel is a globally traded commodity and not all regions of the world are moving at the same pace when it comes to the introduction of regulation to address climate change. Ensuring all market participants operate under the same competitive rules is key; the greater the level of global coordination in developing effective policies, the better progress we will make towards decarbonisation.
The most effective mechanism to transition the steel industry to net-zero would be a suitably ambitious and globally applied carbon price covering every region, country and market. However, there is little probability of that happening in the short to medium term. Instead, we are faced with a situation where each jurisdiction develops its own policy framework with no unified customer and GHG policy response for the steel industry globally. This has created a sub-optimal situation with often complicated and overlapping policy landscapes that do very little to advance the required market conditions to deliver competitive carbon-neutral steel.
ArcelorMittal is committed to conducting all its direct and indirect policy lobbying and advocacy work in line with the Paris agreement. And we will take action to ensure we are not supporting lobbying that is misaligned with the goals of the Paris Agreement, taking into account ArcelorMittal’s level of engagement and level of influence in the industry association. Potential escalation measures include direct communication requesting further alignment with ArcelorMittal policy priorities and the Paris agreement, ensuring ArcelorMittal’s financial contribution is ringfenced for non-lobbying activities (e.g. towards standard setting only), and ceasing our membership.