Benchmarking systems for greenhouse gases specific emissions in steel industry

Abstract

The incipient low-carbon transformation of the world economy requires elaboration of market mechanisms, based on determination and comparison of carbon intensity of products (benchmarking), separate facilities, enterprises, countries, regions and the world as a whole. Description of foreign benchmarking systems for specific energy consumption and specific greenhouse gases (GHG) in steel industry given. Results of benchmarking of energy efficiency of steel production in the countries of G20 presented, which was accomplished by International Energy Agency (IEA) in 2021. Russian experience of selective benchmarking by ecological parameters (in information and technical reference books on best available technologies) considered as well as experience of Russian metallurgical companies on evaluation specific emissions of GHG. Comparison of IEA data and those of Russian companies showed that result of benchmarking substantially depends on chosen calculation system and reliability of the initial information, as well as highlighted necessity of harmonization of benchmarking systems and provision of possibility to obtain results in various benchmarking systems based on the same initial information. Actuality and necessity substantiated to create a Russian benchmarking system for specific emissions of GHG first of all to keep ability of exporting Russian products of steel industry into EC, where from 2023 a system of boundary carbon control will come into force, as well as to keep and expand market niches at other markets, including the internal Russian one. The list of products of steel industry and limits of technological processes of their production in the Russian benchmarking system being created, must provide a possibility of comparison with foreign systems and comparison with benchmarking for products which can be covered by CBAM (Carbon Border Adjustment Mechanism) system. Basic items of CBAM concept being discussed by European parliament presented. It was noted that in view of plans to introduce CBAM, the provision of correspondence of Russian system to the system of trade by EC quotas or to other scheme, due to which the CBAM mechanism will be launched becomes a matter of particular actuality. The list of products of steel industry, covered by benchmarking within European system of trade by quotas for GHG emissions, limits of a product production system and significance of benchmarkers presented. It was noted that for Russian exporters of steel industry products, the benchmarking for specific GHG emissions should become a routine procedure. It was proposed to elaborate a calculator “Benchmarking of carbon intensity of products of steel industry of Russia”, which could provide comparison of the results obtained with benchmarkers of other international systems.