Steel

Status: The Steel Criteria is available for Certification. 

 

Criteria: The Steel Criteria lay out the requirements that Steel production asset, projects must meet to be eligible for inclusion in a Certified Climate Bond and for company's on a credible transition path to issue transition labelled debt. The Criteria apply to manufacture and production of steel and do not address other stages of the value chain. 

The Criteria contain Mitigation Requirements, Adaptation & Resilience Requirements and Transition Requirements.

Financial instruments (bonds and loans) linked to these eligible assets, activities and entities will be aligned with the Paris Agreement and the goal of keeping global temperature rises to no more than 1.5oC above pre-industrial levels.

Public consultation:

A webinar was held on the 23 of June 2022 to launch the Criteria for public consultation. The recording of that webinar is below.

Why develop eligibility Criteria for steel investments?

Improved guidance, such as these Criteria, will guide investors to invest in credible transition activity; guide asset owners to upgrade and guide policy makers to incentivise the transition and can be utilised by governments in setting regulation or recommendations for decarbonising the sector.

 

A Green Future for Steel: Policy to accelerate the steel transition

The 2020s offers a perfect opportunity for the steel industry to transition in Europe. 74% of EU steel blast furnace capacity needs reinvestment by 2030, and blast furnaces have a life span of decades. Coming investment cycles will lock plants into a specific production process. Policymakers must guide industry and investors onto a climate-aligned pathway for steel. Learn more in Climate Bonds' policy paper A Green Future for Steel.

 

The Technical and Industry Working Groups (TWG and IWG)

To create the Criteria, we convened a Technical Working Group (TWG) and an Industry Working Group (IWG) with representatives from investors, public entities, research institutes and international policy bodies from around the world.  These experts ensure a robust pragmatic criteria is developed.

 

The Steel Criteria Technical Working Group Members

 

Technical Lead Ali Hasanbeigi Global Efficiency Intelligence	Robert Adamczyk EBRD and EU Platform for Sustainable Finance	Dr. Max Åhman Lund University	Dr. Rutger Gyllenram Kobolde & Partners AB	Dr. Brenda Chan CDP	Dan Gardiner IIGCC and TPI
Lucy Kessler Rocky Mountain Institute	Lachlan Wright Rocky Mountain Institute	Hongyou Lu Lawrence Brekeley National Laboratory (LBNL)	Dr. Sha Yu Pacific Northwest National Laboratory	Dr. Zushu Li WMG The University of Warwick	Antonina Scheer  Transition Pathway Initiative (TPI)	Fabiana Contreras Climate Bonds Sustainability Analyst Coordinating the Process

 

Industry Working Group (IWG) Members*

 

Alacero Affirmative Investment Management Arcelor Mittal Baosteel BayernLB Bluescope Citi Danske Bank Deloitte Gerdau ERM Certification and Verification Services ING Institutional Shareholder Services ESG

Japan Credit Rating Agency JSW Steel National Australia Bank NN Investment Partners Nomura Severstal Societe Generale Corporate and Investment Banking Sustain Advisory Sustainalytics Tata Steel TERNIUM BR Unicredit Voestalpine World Steel Association

 

*Members of the IWG have provided critical and useability-focused consultation and feedback on the Criteria, but this does not automatically reflect endorsement of the criteria by all members.

 

Financial instruments (bonds and loans) linked to these eligible assets, activities and entities will be aligned with the Paris Agreement and the goal of keeping global temperature rises to no more than 1.5oC above pre-industrial levels.