ResponsibleSteel, a global multi-stakeholder standard and certification programme, has signed a memorandum of understanding (MOU) with the Sustainable STEEL Principles Association (SSPA), ‘paving the way’ for the facilitation of the faster decarbonization of steel.
“With the clock ticking on climate change, we need pragmatic solutions to tackle climate change especially, in relation to heavy industry.''
Annie Heaton, CEO of ResponsibleSteel
Annie Heaton, CEO of ResponsibleSteel said, “With the clock ticking on climate change, we need pragmatic solutions to tackle climate change especially, in relation to heavy industry. These solutions need to be based on technological breakthroughs, innovation and creative problem solving. They also need to be global. None of this will be possible without a radical step change in how we finance these breakthroughs so industries like steel can decarbonize rapidly and be a force for good. The MOU between the SSPA and ResponsibleSteel signifies a continued determination by banks, the steel industry and wider stakeholders to achieve real progress towards net zero by 2050, and all the complexities which that entails.”
''Building consistent and transparent data via reporting requirements for the steel sector will be paramount to facilitating financing for the decarbonization of the sector.''
Erik van Doezum, global steel lead at ING and chair of the SSPA
Erik van Doezum, global steel lead at ING and chair of the SSPA said, “The decarbonization of the steel sector globally requires significant investments to be made, and financing will be needed to facilitate these. Banks therefore will have to identify high quality decarbonization business plans, allowing them to guide their assets into investments compatible with a 1.5C future. Building consistent and transparent data via reporting requirements for the steel sector will be paramount to facilitating financing for the decarbonization of the sector. This will enable all parties – steelmakers, lenders and other stakeholders – to use and understand common measures of progress. That is why we believe that this MOU between Responsible Steel and the SSPA is important – it signifies the importance of collaboration towards those ends.”
In addition to the MOU, ResponsibleSteel has announced that it is setting up a Finance Working Group (FWG) aimed toward researching and discussing benchmarking carbon requirements within the ResponsibleSteel Standard and certification programme.