The steel industry is a major source of carbon emissions, with conventional steelmaking belching carbon dioxide twice: first when coal is heated to create coke, then again when the coke is burned to melt iron ore in furnaces. And with global demand for steel growing, the race is on to develop “green steel,” with companies exploring a plethora of newer, cleaner manufacturing techniques.
(Feb 11): Almost all major banks that have pledged to finance low-carbon steel are backing initiatives that will lead to additional greenhouse gas pollution.
An analysis published Wednesday by non-profit BankTrack found that all but one of 20 top lenders — Lloyds Banking Group Plc being the exception — are funding companies or projects pursuing what the Netherlands-based group calls “false solutions.” These include approaches such as reducing iron ore by using natural gas or injecting hydrogen into blast furnaces, which BankTrack said risk prolonging carbon-intensive processes or driving deforestation.
