| It is not only the Green Fuel, Green steel can cut the climate impact of car production for just €57 a vehicle – T&E reported. |
| The climate impact of producing cars is increasingly under the spotlight as tailpipe emissions are reduced to zero and the car sector strives to become net zero. T&E is publishing a new analysis that shows green steel can reduce the CO2 emissions of producing cars in Europe by 6.9 Mt in 2030. That’s equivalent to avoiding the annual emissions of 3.5m fossil fuel cars. |
The analysis – which looks at steel made with green hydrogen and electric arc furnaces or produced from scrap – also finds that switching to 40% green steel in new cars by 2030 would add just €57 to the sticker price. Moving to 100% green steel by 2040 will cost only €8 more than using conventional steel.
The automotive sector is well-positioned to provide an offtake market for low-carbon steel production. The consultancy Ricardo tracked production announcements for T&E and found Europe will be able to produce up to 172 Mt of green steel a year by 2030. This will be more than enough to meet the total demand for steel by the automotive sector, which consumed 36 Mt in 2022.
T&E is calling on EU lawmakers to use the revision of the End-of-life Vehicles (ELV) regulation to set content requirements for carmakers: 40% of steel in new cars should be required to be green by 2030, rising to 75% in 2035 and 100% in 2040.
- This article was published in July 2024 by T&E (Transport & Environment ) Europe’s leading advocates for clean transport and energy. Fighting for an affordable zero-emission transport system that benefits both people and the planet.