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IRON and STEEL Takes Part in the Chemical Reaction to Produce Steel AN Iyourndustry’s Guide phoneto pillsClimate Actioncar houseindirectly emit CO2 ACKNOWLEDGEMENTS Grateful thanks to the Children’s Investment Fund Foundation for supporting our work on indutrial climate action. DISCLAIMER Bellona endeavours to ensure that the information disclosed in this report is correct and free from copyrights but does not warrant or assume any legal liability or responsibility for the accuracy, completeness, interpretation or usefulness of the information which may result from the use of this report. © 2018 by the Bellona Foundation. All rights reserved. This copy is for personal, non-commercial useonly. Users may download, print or copy extracts of content from this publication for their own and non-commercial use. No part of this work may be reproduced without quoting the Bellona Foundation or the source used in this report. Commercial use of this publication requires prior consent of the Bellona Foundation. ABOUT BELLONA Bellona Europa is the Brussels-based branch of the Norwegian Bellona Foundation, an independent non-profit organisation working on the environmental, climate and social issues of our time. We aim to identify, promote and help implement realisable solutions for the protection of nature, the environment and health. To achieve these goals, Bellona continues to work with – and against – relevant actors and stakeholders both nationally, and internationally. OUR ORGANISATION Bellona was founded in 1986 in Oslo, Norway, as an environmental action group. Still headquartered in Oslo, we have since expanded with offices in Brussels, Murmansk and St. Petersburg. Our team consists of about 65 employees with diverse professional backgrounds in communication, engineering, ecology, economics, geosciences, law, physics, and political and social sciences. SOLUTION-ORIENTED APPROACH Our solution-oriented approach to climate issues follows the evaluation of existing options, assessment of associated challenges and promotion of identified solutions. Supported by the breadth of knowledge and skills of our experts, Bellona follows a holistic, trans-sectoral approach to assess the economics, climate impacts and technical feasibility of possible climate options. COMMUNICATION AND COOPERATION The challenges of climate action are complex and involve multiple influential actors and stakeholders; from national and supranational governments, to internationally operating billion-dollar companies, and the people living in respective regions and countries. To ensure collective action takes place and in the interest of society and the climate, it is crucial to retain open channels of communication. Bellona does not shy away from, and indeed seeks, the exchange with polluting industries, as well as civil society, academia and governments. We believe that the process of finding solutions to pollution from industries that are currently essential to our economy and the standard of living needs to involve them. Bellona is engaged on several platforms, where we aim to initiate discussion and fuel debate to identify the realisable climate solutions we need. We work jointly with scientific institutions on several European research projects, and follow close relationships with fellow climate NGOs across the globe. FUNDING Bellona’s work is largely funded by philanthropic organisations and participation in Horizon 2020 research projects. Authors: Dr. Jan-Justus Andreas Ana Šerdoner Keith Whiriskey Contributors: Jonas Helseth Theo Mitchell Olav Øye Mark Preston Aragones Design and layout: Ana Šerdoner CHAPTER 1 summary: We have a problem ................................................................................................6 Reality vs. Paris..................................................................................................................................................7 The Sources of our Problem.............................................................................................................................8 Electricity: Important, but not a silver bullet..............................................................................................10 Industrial Emissions in Europe........................................................................................................................12 Cement...........................................................................................................................................12 Steel...............................................................................................................................................14 Chemicals.......................................................................................................................................16 Too Valuable not to Decarbonise.................................................................................................................18 Enabling a Just Transition, not Just a Transition..........................................................................................20 1 A Web of Jobs and Supply Chains..............................................................................................................22 License to Emit..................................................................................................................................................24 Risky Business...................................................................................................................................................25 Endnotes............................................................................................................................................................28 1 CHAPTER 2 summary: A Diversity of Options, A Lack of Solutions..........................................................2 No barriers to zero-emission industry............................................................................................................3 Reducing, Reinventing and Replacing............................................................................................................4 What does reinvention look like?...................................................................................................................8 Can we fix everything with electricity?.......................................................................................................10 How long must we wait for a low-carbon electricity grid?..................................................12 How much electricity do we plan to produce and consume?...............................................13 Electricity use in society and industry..........................................................................................................14 Limitations of reinventing industry with electrification..............................................................................16 2 Endnotes............................................................................................................................................................18 CHAPTER 3 summary: The Dawn of a New Industry..................................................................................2 Many options, few solutions............................................................................................................................3 CCS in Industry..................................................................................................................................................4 How it works...................................................................................................................................4 Why it works for the climate.......................................................................................................6 How to do it right..........................................................................................................................8 3.1.Managing CO2: Opportunities and Traps............................................................................................9 New opportunities..........................................................................................................................................10 Not every use of CO2 is climate action.....................................................................................................12 3.2. Creating CO2 Networks.......................................................................................................................15 Making Europe Climate-Proof......................................................................................................................16 It’s up to Industry to break Inertia...............................................................................................................18 Moving European CO2 infrastructure down the cost curve....................................................................19 3 Incentivising and Financing a European CO2 Network...........................................................................21 Low carbon worlds for a low carbon world...............................................................................................22 Endnotes...........................................................................................................................................................24 CHAPTER 4 summary: A Farewell to Inaction...............................................................................................2 Scandinavia.......................................................................................................................................................4
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