Sectoral approaches are discussed widely in international
negotiations, governments and research institutes,
because they are considered to enhance greenhouse gas
mitigation and address competitiveness concerns of
globally competing industry.
Developing countries have so far rejected binding
commitments, industrial benchmarks or sectoral
approaches. But according to IPCC, also they have to
reduce emissions in a long term, if we want to achieve 2
°C target. Sectoral approaches could be considerable
easier start than economy wide commitments.
Every sectoral approach includes (1) selecting a sector,
(2) defining a sector, (3) designing the approach and (4)
amending it to national legislations. The scheme's
trustworthiness also requires proper monitoring,
reporting and verification.
The iron and steel sector seems to suit well for a
sectoral approach, due to its concentrated actors and
uniform products and processes. The definition of a
regulated sector could be only a blast furnace or it
could reach also to other steel making sub processes or
other reduction processes, e.g. ferrochrome. Emissions
could be measured as absolute or with benchmarks, but
benchmarks suit a sectoral scheme better.
Why developing countries would adopt any commitments is
one of the key questions. They may 1) receive funds in
exchange of GHG reductions or there can be 2) technology
transfers and 3) training of professionals. Generally
speaking, these options may look reasonable and sound,
but they include many difficult questions.
This study gives a brief review of the literature on
sectoral approaches and the global iron and steel
industry. It carries out a case study of sectoral
approaches on the iron and steel sector and discusses
underlying barriers and possible solutions.
|Place of Publication||Espoo|
|Publisher||VTT Technical Research Centre of Finland|
|Number of pages||58|
|Publication status||Published - 2009|
|MoE publication type||Not Eligible|
|Series||VTT Working Papers|
- sectoral approaches
- carbon leakage