Clean Development Mechanism (CDM) and Steel Industry Development
1. Introduction
Clean Development Mechanism (CDM) is an international initiative that was created as part of the Kyoto Protocol. It is intended to help the world reduce emissions of global warming potential (GWP) gases, such as carbon dioxide (CO2). CDM works by enabling countries to develop projects that reduce GWP emissions and receive clean development credits in exchange. These credits can then be sold on the international carbon market and generate income for the country or organisation that develops the project. This income can be used to fund economic development or to support environment activities. The steel industry has massive potential for participating in the CDM and for benefiting from the opportunities that it offers.
2. The Steel Industry
The steel industry is a major contributor to global CO2 emissions and is responsible for around 5% of global anthropogenic greenhouse gas (GHG) emissions. The industry is also an important economic driver, employing an estimated 6 million people across the world and contributing around US$951 billion to the global economy in 2018. In order to reduce emissions, the steel industry must take notice of international initiatives such as the CDM.
3. Clean Development Mechanism (CDM)
The CDM is an international movement that is designed to provide financial incentives to countries, as well as organisations, to reduce GHG emissions. Through the use of clean development credits; projects that reduce emissions can be certified and then sold on the international carbon market. The income generated from the sale of these credits can be used to improve the socio-economic conditions in the project area and can support activities related to climate change.
4. Steel Industry and the CDM
The steel industry has a major role to play in the CDM. Steel production is a major source of climate-change induced emissions, and reducing emissions from the steel industry can significantly benefit the environment. The CDM has the potential to offer a number of innovative projects that can help decrease emissions from the steel industry.
One example of this is the use of carbon capture and sequestration (CCS) technologies. CCS is a process whereby emissions are captured before they are released into the atmosphere. This captured CO2 can then be safely stored in underground reservoirs, preventing it from contributing to climate change. By adopting CCS technology, steel mills can reduce their GHG emissions and can receive clean development credits for their projects.
Another major area of potential for the steel industry is energy efficiency. By improving the energy efficiency of steel mills, energy consumption and GHG emission levels can be reduced. The CDM has developed a set of standards for measuring energy efficiency improvements in steel mills and can certify energy efficiency projects that meet these standards. By participating in these projects, steel mills can receive clean development credits and can improve their energy efficiency in the process.
5. Conclusion
The CDM has a great deal to offer the steel industry. Through the use of innovative projects such as CCS and energy efficiency, steel mills can reduce their emissions and can benefit greatly from the CDM. The income generated from the sale of clean development credits can help to fund further development activities and can help to support initiatives related to climate change. The CDM has the potential to provide a major advantage to the steel industry and to help it move towards a more sustainable future.
