GHG Emissions, Industrial  -  May 28, 2021

Citi, Goldman Sachs and Others Join Collaboration to Decarbonize Steel

Citi, Goldman Sachs, ING, Societe Generale, Standard Chartered and UniCredit are collaborating on developing a finance agreement that will support the decarbonization of the steel industry.

These institutions are among the top lenders to the steel sector. The group was brought together by Rocky Mountain Institute’s Center for Climate-Aligned Finance to form the Steel Climate-Aligned Finance Working Group.

“The formation of the steel finance working group is just the first step on the journey to a climate-aligned steel sector,” James Mitchell, director at the Center, said in a statement.

The purpose of the group is to define common standards for measuring progress against climate targets within the steel sector. It is estimated that the steel sector accounted for around 7% of the world’s carbon emissions and commercially viable alternatives are still in their early stages of development. The Working Group brings together senior representatives from each bank’s metals and mining teams to develop the scope, emissions pathways, methodologies, and governance structure of the collective.

The Working Group is part of the Mission Possible Partnership, an alliance of nonprofits and businesses working to accelerate industrial decarbonization across seven sectors. RMI will bring together the Work Group and the Net-Zero Steel Initiative within MPP to ensure the objectives of steelmakers and lenders are aligned.

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