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CO 2 emissions from global steel production may jeopardize climate goals of 1.5 °C unless current steel production practices will be rapidly decarbonized. At present, primary iron and steel production is still heavily dependent on fossil fuels, primarily coke. This study aims to determine which decarbonization pathways can achieve the strongest emission reductions of the iron and steel industry in Germany by 2050. Moreover, we estimate whether the German iron and steel industry will be able to stay within its sectoral carbon budgets for a 1.5 °C or 1.75 °C target. We developed three decarbonization scenarios for German steel production: an electrification, coal-exit, and a carbon capture and storage (CCS) scenario. They describe a phase-out of coal-fired production plants and an introduction of electricity-based, low-carbon iron production technologies, i.e. hydrogen-based direct reduction and electrowinning of iron ore. The scenarios consider the age and lifetimes of existing coal-based furnaces, the maturity of emerging technologies, and increasing recycling shares. Based on specific energy requirements and reaction-related emissions per technology, we calculated future CO 2 emissions of future steel production in Germany. We found that under the decarbonization scenarios, annual CO 2 emissions decrease by up to 83% in 2050 relative to 2020. The reductions of cumulative emissions by 2050 range from 24% (360 Mt CO 2) under the electrification scenario up to the maximum of 46% (677 Mt CO 2) under the CCS scenario compared to a reference scenario. This clearly demonstrates that the technology pathway matters. Nevertheless, the German steel sector will exceed its sectoral CO 2 budget for a 1.5 °C warming scenario between 2023 and 2037. Thus, drastic measures are required very soon to sufficiently limit future CO 2 emissions from German steel production, such as, a rapid decarbonization of the electricity mix, the construction of a hydrogen and CCS infrastructure, or early shutdowns of current coal-based furnaces. [Display omitted] • Scenarios for iron and steel production in Germany until 2050 • Adopting new technologies: hydrogen-based direct reduction and electrowinning • Comparison of CO 2 emissions with sectoral carbon budgets for the steel industry • Carbon budget for climate goal of 1.5 °C likely to be exceeded between 2023 and 2037 • Carbon capture scenario achieves lowest CO 2 emissions but has higher energy demand [ABSTRACT FROM AUTHOR]

CO 2 emissions from global steel production may jeopardize climate goals of 1.5 °C unless current steel production practices will be rapidly decarbonized. At present, primary iron and steel production is still heavily dependent on fossil fuels, primarily coke. This study aims to determine which decarbonization pathways can achieve the strongest emission reductions of the iron and steel industry in Germany by 2050. Moreover, we estimate whether the German iron and steel industry will be able to stay within its sectoral carbon budgets for a 1.5 °C or 1.75 °C target. We developed three decarbonization scenarios for German steel production: an electrification, coal-exit, and a carbon capture and storage (CCS) scenario. They describe a phase-out of coal-fired production plants and an introduction of electricity-based, low-carbon iron production technologies, i.e. hydrogen-based direct reduction and electrowinning of iron ore. The scenarios consider the age and lifetimes of existing coal-based furnaces, the maturity of emerging technologies, and increasing recycling shares. Based on specific energy requirements and reaction-related emissions per technology, we calculated future CO 2 emissions of future steel production in Germany. We found that under the decarbonization scenarios, annual CO 2 emissions decrease by up to 83% in 2050 relative to 2020. The reductions of cumulative emissions by 2050 range from 24% (360 Mt CO 2) under the electrification scenario up to the maximum of 46% (677 Mt CO 2) under the CCS scenario compared to a reference scenario. This clearly demonstrates that the technology pathway matters. Nevertheless, the German steel sector will exceed its sectoral CO 2 budget for a 1.5 °C warming scenario between 2023 and 2037. Thus, drastic measures are required very soon to sufficiently limit future CO 2 emissions from German steel production, such as, a rapid decarbonization of the electricity mix, the construction of a hydrogen and CCS infrastructure, or early shutdowns of current coal-based furnaces. [Display omitted] • Scenarios for iron and steel production in Germany until 2050 • Adopting new technologies: hydrogen-based direct reduction and electrowinning • Comparison of CO 2 emissions with sectoral carbon budgets for the steel industry • Carbon budget for climate goal of 1.5 °C likely to be exceeded between 2023 and 2037 • Carbon capture scenario achieves lowest CO 2 emissions but has higher energy demand [ABSTRACT FROM AUTHOR]

This study contributed to the environmental research by analyzing the nexus between innovation in climate change mitigation technologies and carbon dioxide emissions in the United States, with the gross domestic product per capita, international collaboration in green technology development, renewable energy consumption, the labor force, and trade openness as control variables from 1990Q1 to 2018Q4. First, the results suggested that renewable energy consumption, innovation in climate change mitigation technologies, and international collaboration in green technology development are significant mitigating and determining factors for carbon dioxide emissions. Second, the findings also indicated that trade openness and gross domestic product per capita were positively associated with carbon dioxide emissions. Third, the Granger causality test results validated the presence of a bidirectional nexus between innovation in climate change mitigation technologies and carbon dioxide emissions, renewable energy consumption and carbon dioxide emissions, and international collaboration in green technology development and carbon dioxide emissions. Fourth, the results validated a one-way causality between gross domestic product per capita and carbon dioxide emissions. [ABSTRACT FROM AUTHOR]