Mike Henry, CEO of BHP Group Ltd, states that China's steel industry is younger compared to Europe and therefore follows a different strategy to achieve decarbonization targets. This shows that China may be at a disadvantage in the global race to reduce carbon.
Steel production accounts for about 8% of global carbon dioxide emissions, and China produces the bulk of the world's steel. However, China's steel industry is moving slowly in the decarbonization process because its conventional blast furnaces are younger and the availability of scrap steel is low.
Henry emphasized that Europe is accelerating carbon reduction efforts through methods such as switching to electric arc furnaces and scrap steel recycling. However, he noted that China tends to continue using its currently operating blast furnaces rather than replacing them at an early stage.
Henry said that manufacturers in China are investing in technologies such as hydrogen injection, carbon capture and storage to offset increasing greenhouse gas emissions, and stated that BHP supports such efforts.
As a result, given China's importance in the world economy and its role in the energy sector, the importance of the country's decarbonization efforts becomes even greater.
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