This is an HTML version of an attachment to the Freedom of Information request 'Meeting between SG and ArcelorMittal'.






Ref. Ares(2020)3510960 - 03/07/2020
Ref. Ares(2020)5071176 - 28/09/2020
Climate Action in Europe  
Our carbon emissions reduction roadmap:  
30% by 2030 and carbon neutral by 2050




1
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR CO
OUR C MMITMENT
OMMIT
OUR ROADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
Our commitment
Climate change is one of the greatest 
We have spent the last few years testing 
“ Steel has the potential to 
challenges facing us all. With global emissions 
technologies to produce steel in a carbon neutral 
continuing to rise and extreme weather 
way. As outlined in our first global climate action 
be made without carbon 
occurrences intensifying, we cannot afford 
report published in 2019, we have identified 
to ignore it. Much of this report was written 
different technology pathways which offer 
emissions. But that wil  not 
before the outbreak of Covid-19 that we now 
the potential for significant carbon emissions 
happen without the right 
find ourselves in the midst of. Solving the 
reduction. These range from circular carbon in 
Covid-19 problem is clearly everyone’s first 
the form of renewable biomass and bio-waste; 
policy. The time is now and 
priority at present and despite the many 
clean electricity; to carbon capture and storage. 
uncertainties that exist today, I hope that 
we cannot afford to fail.”
These technologies have the potential to make 
path will become clearer in the coming months 
a big impact. And with our plans for rol ing them 
and progress is made with the development of a  out across Europe, we are taking important steps 
vaccine and other treatments. 
forward. But we can’t do it alone. We need the 
Climate change, however, remains a huge long-
support of the EU and member states to ensure 
term chal enge that will require diligent attention 
we have well-designed policy, including available 
and progress for decades to come. And like 
finance, access to alternative clean energy sources 
Covid-19, it is not something that one country 
at competitive prices and public guarantees on initial 
or one company can solve alone. As we discuss in 
ramp-up projects. Furthermore, a carbon border 
this first climate action report for Europe, carbon 
adjustment is required to support a successful 
emissions also know no border, so it will take 
transition to low-carbon steelmaking during the 
a global effort, with all nations and companies 
implementation of the EU’s Green Deal, while other 
playing their part. 
regions may not be working at the same pace. 
Leaders will emerge; and Europe has stepped up 
With this approach, we can make a difference: steel 
to the chal enge by making a clear commitment 
is an incredible material. It is strong, versatile and 
to be carbon neutral by 2050. As the continent’s 
infinitely recyclable. It has the potential to be made 
leading steel company, we have a significant role 
without carbon emissions. With these credentials, 
to play. We are committed to the transition to 
steel should and can play a leading role in achieving 
carbon-neutral steelmaking, in line with the 
the vision for Europe as outlined in the Green Deal. 
Paris Agreement and the EU’s commitment. Last 
But that will not happen without the right policy. 
year, we announced a target to reduce carbon 
The time is now, and we cannot afford to fail.
emissions in our European operations by 30% by 
2030, with a longer-term ambition to be carbon 
neutral by 2050. 
Significant work is underway. By far the largest 
component of steel’s carbon emissions come 
Aditya Mittal 
from using coal and coke in the blast furnace 
President and CFO, ArcelorMittal,  
to reduce oxygen from iron ore.
and CEO ArcelorMittal Europe

2
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
Our roadmap
D
ArcelorMittal Europe has committed to 
for the large-scale, affordable, renewable energy 
S
R
m
I
Smart Carbon
C ar
includes:
reduce CO2 emissions by 30% by 2030, with 
needed for hydrogen-based steelmaking. We wil  
I
a
t
nc
r
 
r
b
e
o
a
o
f
s
n
 
a further ambition to be carbon neutral by 
reduce our European Scope 1 CO
s
e
2 intensity by 
c
d
r
 
a
u
p
s
  
 
e
stee
2050, in line with the EU’s Green Deal and 
30% by 2030, over a 2018 baseline (see page 12). 
l
  Carbalyst®
the Paris Agreement. As Europe’s largest 
We believe it is prudent to pursue both routes 
w
  
ith
steelmaker, with blast furnace, electric 
 
n
  Torero
a
because of the technological and economic 
N
tu
e
r
arc furnace and direct reduced iron (DRI) 
w
g
a
a
l
c
 m
s
e
uncertainties, the scale of the chal enge, and the 
m a
w
t
i
e
e
th
m
n
ri
  
operations across seven countries, we have 
a
t
a
 
C
t
a
ls
C
e
n
 i
S
p
r
  IGAR
political and natural variations between countries 
o i
d
n
a
 
c
ly l
r
s
e lu
e

c
d
a significant role to play in contributing 
a
t
t
y
i
r
h
o
c
n
e
y
 
 
l
r
l
g
e
c
e
e
d  s
and regions, for example in terms of the funds 
S
r
n
p
 
t
e
e
la c
e
a
e
m
a
-
a
t
b ce
r
l
b

e
  
to the EU’s green ambitions.
rt
d a
 
 C  
s
t
o
h
n
u
e
e
 
a
s
d
 
r
i
 
 
3D - carbon 
available to invest in the vast energy infrastructure 
b
n
 
u
p
s
o
g
l
n
 
a
e
t
 
h
s
 o
t
ro e
i
f
c
 
  capture
u
 
s,
w
t
 
e
it
.

With the right support, reducing carbon emissions 
needed to achieve carbon-neutral steelmaking. 
hydrogen
is certainly achievable, but there is no denying 
with 
We have committed around €300 mil ion towards 
hydr
it represents a significant chal enge. Making 
ogen
carbon-neutral technology via both routes to date, 
DRI
steelmaking carbon neutral is complex and wil  
includes:
leveraging our R&D facilities around the world, and 
cost bil ions of euros. 
the support of public funding. The progress we are 
  ArcelorMittal 
 
 
  Hamburg 
To transform our operations to become carbon 
making gives us confidence some technologies 
  hydrogen 
project
neutral, we need to move primary (iron ore-based)  could reach commercial maturity before 2025, 
  
steel production away from a reliance on fossil fuel  but scaling this up will require continued public 
energy, towards the use of “clean energy” – in the 
funding, given the bil ions of euros needed to 
form of clean electricity, circular carbon, and 
achieve large-scale carbon-neutral steelmaking. 
carbon capture and storage (CCS). 
In the medium term, our 2030 target will be 
we believe many of our Smart Carbon technologies  abatement route is much higher cost today than 
To enable us to use these clean energies, we are 
achieved through the partial deployment of Smart 
will be mature and partial y deployed across our 
Smart Carbon and it is unlikely that enough progress 
pioneering two breakthrough carbon-neutral 
Carbon as well as developing new ways to increase 
facilities in Europe.
will be made for it to play a meaningful role before 
technology routes: the first, we call Smart Carbon 
the use of low quality scrap metal in our primary 
2030. Beyond 2030, we do expect Hydrogen DRI 
Although CCS is not yet a major contributor to 
and the second is an innovative DRI-based route.
steel production process. 
technologies to feature more, and in anticipation 
our 2030 target, it is quite conceivable that 
of this, we are creating one of Europe’s first 
Both routes will benefit from a shift towards 
One of the most attractive elements of the 
within a decade, progress will be made on its 
industrial-scale DRI plants that uses hydrogen for 
hydrogen in the long term. The important 
Smart Carbon route is that it features a number 
deployment. We believe this technology has an 
the direct reduction of iron ore, instead of natural 
difference is the evolution and commercial viability  of complementary technologies which enable 
important role to play in enabling a net-zero 
gas. We are also testing the increased use of 
of the Smart Carbon technology route in the 
incremental progress and can be combined 
economy and in the medium term, while we await 
hydrogen in the Smart Carbon route.
medium term, and the added value this can bring 
to deliver additional value. These include Torero 
sufficient amounts of clean energy to produce 
to the low-emissions circular economy.
(turning waste wood into bio-coal to replace coal 
green hydrogen, CCS could offset the continued 
The road ahead is not straightforward, but with 
as a reductant in ironmaking); IGAR (making 
use of fossil fuels, such as natural gas, be it via the 
cross-sector col aboration and supportive public 
We believe pursuing both routes to carbon 
synthetic gas from waste CO2 as a replacement for  Smart Carbon route or the DRI route. 
policies, to scale up the technologies and ensure 
neutrality is an advantage, as it means we can 
fossil fuels); and Carbalyst® (converting off-gases 
the large-scale deployment of clean energy 
significantly reduce our scope 1 CO2 emissions, 
In summary, while there is no doubt that innovative 
into bio-ethanol). Based on market conditions 
infrastructure, we know we can transition to 
which include all process emissions, by 2030 (see 
DRI technology – particularly when using green 
today, the Smart Carbon route is less capital-
carbon-neutral steelmaking and play a significant 
Basis of Reporting, page 12) without having to wait 
hydrogen – also offers huge potential, this 
intensive than the innovative DRI route. By 2030, 
role in helping Europe achieve its climate ambitions. 

3
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROAD
O
MAP
ADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
The transition to clean energy 
Today, primary (iron-ore based) steel production relies on fossil fuel-based energy sources that emit CO2. We recognise the vital need to transition to clean energy to be carbon neutral. This clean energy 
wil  be in the form of clean electricity, circular carbon and carbon capture and storage (CCS). Alone, each of these three clean energies can in theory be carbon neutral. But the reality is that the scale of 
investment in the infrastructure that will deliver clean electricity, circular carbon and CCS is different, and the availability and access to them varies. As a result, we will use different combinations of these 
three clean energies to reach carbon neutrality. This means we can move faster to reduce our CO2 emissions. And where we deploy circular carbon technology, not only will we produce carbon-neutral 
steel, we could also put steelmaking at the heart of the circular economy by avoiding CO2 emissions from other industries: we will create recycled carbon materials to replace polyethylene-based plastics. 
And, through creating a carbon-neutral primary production process, we could generate carbon-neutral slag (a direct substitute for cement). 
Circular carbon means we can achieve carbon neutrality by relying on the earth’s natural carbon cycle and making 
use of biowaste materials, such as sustainable forestry and agriculture residues, to produce bioenergy for steelmaking. 
Circular
Additional y, using waste plastics as the source of energy, in combination with our carbon capture and use technology, 
carbon
we can convert carbon that would otherwise be emitted as CO2, into hydrocarbon liquids (ethanol) or solids (plastics). 
This creates a carbon-neutral, circular carbon cycle while addressing society’s waste chal enge with plastics. If the 
European steel industry switched to using bioenergy, around 200-250 mil ion tonnes of biomass and waste would be 
needed each year. Additional y, the steel industry would be producing up to 30% of today’s plastic needs in a carbon-
neutral way. Although today it is not technically possible to make a complete shift to bioenergy, the investment 
in a clean energy system to transition the entire European steel industry to bioenergy is estimated at €50-70bn. 
Clean electricity is a carbon-neutral energy that comes from sources such as solar and wind energy, that do not 
emit CO2. For the steel industry, clean electricity can be used by extracting hydrogen from electrolysis of water. This 
hydrogen is then used to reduce iron ore into iron. While innovations should drive costs down, the timetable remains 
unclear and it is likely to be decades before clean electricity and hydrogen are available on a scale and cost that would 
benefit the steel industry. If the European steel industry ful y switched to clean electricity today, this would imply 
a 15% increase in power consumption. The energy infrastructure investment needed to move the entire 
Clean
Carbon
European steel industry to clean electricity via hydrogen would be €450-700bn.
Low-emissions
capture and
electricity
steelmaking
storage
Carbon capture and storage (CCS) technology captures CO2, transports it and stores it safely underground. 
Avoiding emissions from fossil fuels renders industrial processes such as steelmaking carbon neutral. The North Sea 
basin alone is estimated to have up to 300,000mt of CO2 storage capacity. Longer term, combining CCS with circular 
carbon can move the industry beyond carbon neutrality, turning the steel industry into an agent to remove CO2 from 
the atmosphere. If the entire European steel industry became carbon neutral through CCS, we estimate 150-200 
mil ion tonnes of CO2 transport and storage would be needed annual y, needing investment of €100-150bn in 
clean energy infrastructure.

4
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
Smart Carbon 
carbon-neutral cement and carbon-neutral 
complemented with CCS. Later, as the hydrogen 
The Carbalyst® process provides the building 
biomaterials – this is what we call Smart Carbon. 
economy evolves and cost-effective hydrogen 
blocks the chemicals industry needs to produce 
We are developing a carbon-neutral steelmaking 
Smart Carbon can also use CCS to capture any 
becomes available, we wil  transition to Hydrogen 
these recycled carbon materials. 
route that leverages all clean energies within 
CO2 emissions from remaining fossil fuels and 
Smart Carbon, where hydrogen – increasingly 
the high temperature-control ed reduction 
We estimate the cost of deploying Smart Carbon 
ensure the process remains carbon neutral. 
green hydrogen made with clean electricity –
environment of ironmaking. Since the high-
across ArcelorMittal Europe is €15-25bn. 
becomes a key reductant in the process.
temperature gas used to reduce iron ore can be 
Initial y the Smart Carbon route will focus on 
Additional y, investments of €15-30bn would be 
either predominantly carbon or hydrogen, this 
leveraging sources of circular carbon from waste 
Smart Carbon uses end-of-life plastic packaging 
needed to build the clean energy infrastructure 
route is flexible to adapt as the external energy 
streams, and then capturing the resulting carbon 
and textiles and wastes to create bioenergy. 
to enable bioenergy and CCS-based Smart Carbon.
infrastructure evolves. This route has the potential  emissions for reuse or storage. During this phase, 
A carbon-neutral cycle is then created by using 
not only to provide carbon-neutral steel, but also 
natural gas can also be used in the process as 
carbon from end-of-process emissions to produce 
a lower-carbon form of energy than coal, and 
equivalent new recycled carbon materials. 
Making carbon-neutral steel: the Smart Carbon route
Recycled
Bio-ethanol
carbon materials
Chemical industry
Green hydrogen
Clean electricity (post 2030)
Input of clean energy in the 
form of hydrogen from clean 
End of life
Sustainable
Carbalyst
electricity via electrolysis of 
recycling
biomass
water into steelmaking
Use of circular carbon
to produce feedstock for 
biomaterials production
Circular carbon (now) 
Torero
Bioenergy
Input of clean energy in the 
Clean electricity
Electrolysis
form of bioenergy from circular 
generation
carbon from end of life plastics 
and from sustainable biomass
Carbon capture and storage
Carbon capture and storage
IGAR
Blue hydrogen
Capturing, 
Input of clean energy in the 
transporting and 
BF-BOF
form of hydrogen via separation 
storing any non-circular 
Carbon transport
Reformer
and carbon capture and storage 
carbon sources
Carbon transport
Carbon storage
Carbon storage
of carbon in natural gas


5
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROAD
O
MAP
ADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
The Smart Carbon route: technologies under construction
Fully implemented, the Smart Carbon route results in:
One tonne of carbon-neutral steel
Carbalyst® (Steelanol): At ArcelorMittal Ghent 
3D (DMX™ Demonstration in Dunkirk): 
in Belgium, we are building an industrial-scale 
Construction of a carbon capture pilot project, 
250kg carbon-
The high temperature control ed reduction environment of iron making 
demonstration plant to capture carbon off-
3D, is underway at ArcelorMittal Dunkirk in France. 
neutral cement
produces 250kg carbon-neutral slag, a direct substitute for cement. 
gases from the blast furnace and convert it 
The technology will al ow us to capture 0.5 metric 
Production of slag through this route in Europe covers approximately 
into 80 mil ion litres of bio-ethanol a year. 
tonnes of CO2 an hour from off-gases, by 2021. 
10-15% of demand for cement, meaning 10-15 mil ion tonnes of 
This €165 mil ion project is expected to be 
ArcelorMittal is involved in the Northern Lights and 
CO2 emissions from cement are avoided.
completed in 2022. 
Porthos carbon transport and storage projects.
200kg carbon-
In Europe, polyethylene-based plastics account for more than half of the 
neutral biomaterials 
64 mil ion tonnes of plastics and fibres produced. If the entire European 
steel industry switched to Smart Carbon, we could supply more than 
60% of Europe’s polyethylene-based plastic needs, equivalent to 30% 
of the entire demand for plastic and fibre.
IGAR (Injection de Gaz Réformé):  
Torero: At ArcelorMittal Ghent in Belgium, 
At ArcelorMittal Dunkirk in France, we are 
we are building a €50 million large-scale 
Carbon removal 
Increased use of circular carbon, using sustainable biomass and waste 
building an industrial-scale pilot to capture waste 
demonstration plant, to convert waste wood into 
potential
combined with scaling up CCS not only makes steelmaking carbon neutral, 
CO2 and waste hydrogen from the steelmaking 
bio-coal, replacing the coal currently injected as 
but can turn the industry into a net contributor to removing CO2 from 
process and internal y convert it into synthetic 
a reductant in iron and steelmaking. The plant is 
the atmosphere.
gas. The synthetic gas will replace the use of 
expected to be operational by the end of 2022.
fossil fuels in ironmaking. 
Making steel using the Smart Carbon route: what will it cost, compared with today?
+30% using mostly circular 
using mostly 
carbon and CCS 
+60% green hydrogen

6
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
The DRI route (Hydrogen DRI post-2030) 
Reaching carbon-neutral steelmaking via the 
We believe with the right funding support we could  To ramp up, we could use blue hydrogen: sourced by 
DRI involves moving from using predominantly 
have one of the first Hydrogen DRI demonstration 
extracting hydrogen from natural gas and capturing 
Using the natural gas DRI-EAF production route 
natural gas to hydrogen as the key reductant. 
plant operating in Europe by mid-2020s.
and storing the CO
initial y, we foresee a longer-term transition 
2 generated in the process.
As this hydrogen becomes ‘green’ – made using 
to carbon-neutral Hydrogen DRI-EAF steel 
The plant’s major technological chal enge for this 
In the longer term, we could use green hydrogen: 
clean electricity – we will bring the entire 
production. This will be dependent on when the 
route is bringing hydrogen-based DRI production 
sourced by extracting hydrogen from water 
steelmaking process close to carbon neutrality. 
technology matures, and when enough cost-
to commercial maturity and so industrial scale 
through electrolysis, by using clean power and 
effective hydrogen is available. ArcelorMittal is 
To achieve full carbon neutrality, however, 
production is unlikely to be significant before 
heat. Unlike the Smart Carbon route, the Hydrogen 
in a unique position to leverage its European and 
we wil  still need to incorporate some circular 
the 2030s. 
DRI route doesn’t create any other carbon-neutral 
global DRI-based steel production footprint.
carbon into the process by using sustainable 
products such as cement and bio-materials. 
biomass to produce bioenergy. 
Making carbon-neutral steel: the DRI-based route
Clean electricity (post 2030)
Green hydrogen
Pyrolysis
Input of clean energy in the form of 
hydrogen from clean electricity via 
electrolysis of water into steelmaking
Bioenergy
Sustainable
biomass
Circular carbon 
Input of clean energy in 
the form of bioenergy 
Clean electricity
Electrolysis
from circular carbon 
generation
from sustainable 
Circular
biomass
carbon
dioxide
Carbon capture and storage
Carbon capture and storage
Blue hydrogen
Capturing, 
Input of clean energy in the 
DRI – EAF
transporting and 
Carbon transport
Reformer
form of hydrogen via separation 
storing any non-circular 
Carbon transport
Carbon storage
and carbon capture and storage 
carbon sources
Carbon storage
of carbon in natural gas


7
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROAD
O
MAP
ADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
The Hydrogen DRI route 
Making steel using the DRI route: what will it cost, compared with today?
using mostly blue 
using mostly 
hydrogen and CCS 
green hydrogen
ArcelorMittal Hamburg’s hydrogen project:
+50%
+80%
We are in the design and funding phase of an industrial-scale project to use hydrogen instead 
of natural gas in the direct reduction of iron ore (DRI). The objective is to reach industrial commercial 
maturity of the technology by the mid-2020s, initial y producing 100,000 tonnes of sponge iron a year.
Increased use of scrap
Steel scrap from end-of-life products can be 
We are using digitalisation and mathematical 
recycled back into new steel products with 
optimisation algorithms to optimise our 
a potential y very low CO2 footprint, once the 
procurement of scrap, making sure the right 
power source is decarbonised. Given the limits 
quantities and qualities of scrap are reaching our 
on availability, however, today’s chal enge is 
different sites to achieve the most efficient and 
As the Smart Carbon diagram shows (see page 4), 
Longer term, the evolution of the cost of hydrogen 
to use all forms of scrap in the most efficient 
cost-effective use of scrap. 
we will leverage three clean energies in order to 
for steelmakers, and the sustained availability 
way. For example, using scrap local y to avoid 
ArcelorMittal also intends to invest in new and 
produce carbon-neutral steel. 
of bioenergy and CCS, will be key factors in 
emissions from transportation. As scrap 
innovative technologies to be able to melt more 
determining the level of adoption of hydrogen in 
availability increases in the regions where we 
Today, the costs associated with these three 
and lower quality scrap in our primary steel 
steelmaking. We estimate green hydrogen costs 
operate, we will increase our use of local scrap 
energies differ and over time, the cost of supplying 
production facilities in Europe.
would have to decrease by at least 50% to become 
as part of our overall strategy both to reduce 
clean energy will reduce as the technologies 
competitive with other clean energy sources, and 
emissions and to enhance the use of scrap in 
mature and the infrastructure expands. 
more than 75% compared with current fuels. 
the circular economy. 
But with the urgent need to reduce CO2 emissions 
By 2050, our analysis concludes that the additional 
significantly in order to ensure global warming is 
cost of using green hydrogen will converge with 
What will our roadmap to 2050 cost?
kept to a maximum of 1.5ºC, we intend to use the 
CCS and circular carbon, meaning that we wil  
clean energy source that is the most cost effective, 
Investment  
Production cost 
then adjust the blend of clean energies that 
and deployable, in order to make progress in 
needed
increase
we use to achieve carbon-neutral steel.
reaching our 30% CO
ArcelorMittal Europe 
Clean energy 
2 emissions reduction target 
by 2030. 
steel footprint
infrastructure 
We believe Smart Carbon technologies are 
Smart Carbon 
€15-25 billion
€15-165 billion1
+30-60%1 
”Wecouldhavethefirst
sufficiently mature in the short term to make 
DRI route 
€30-40 billion
€40-200 bil ion2 
+50-80%2 
a significant contribution to our 2030 emissions 
Hydrogen DRI demonstration 
reduction target. These technologies wil  leverage 
1   Lower end of range leveraging bioenergy and CCS infrastructure; high end of range leveraging green 
primarily bioenergy and CCS, which are clean 
plant operating in Europe by 
hydrogen infrastructure.
energy sources with a lower cost compared with 
2   Lower end of range leveraging CCS and blue hydrogen infrastructure; high end of range leveraging green 
the mid-2020s.”
today’s high-cost hydrogen.  
hydrogen infrastructure.

8
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
The right framework
We are leading the innovation in the key 
But with the right market conditions, we create 
Carbon neutral by 2050: the pieces we bring
technologies to be ready for roll-out 
strong foundations to transition the steel industry 
across Europe. We have committed around 
to carbon neutrality. The medium-term market 
€300 million in innovation to date and with 
conditions needed include:
continued public funding support, some of 
1.   Creating an environment where carbon-neutral 
these technologies could reach commercial 
R&D
DRI-based 
Increased
steel is more competitive than steel which is 
maturity before 2025. We believe that by 
capabilities
technologies
scrap use
not carbon neutral
2030 we can have many of the Smart Carbon 
technologies mature and partially deployed 
2.   A fair competitive landscape that accounts 
across our facilities in Europe. This will form 
for the global nature of the steel market, 
a big part of the picture.
addressing domestic, import and export steel 
dynamics, as well as the distinction between 
However, the steel industry is a low margin 
primary and secondary sources to make steel.
business, requiring long-term capex investment, 
Activity aligned
Smart
Carbon Border
and operating in a highly-competitive market. 
3.   Financial muscle to innovate and make 
with Paris
Carbon
Adjustment
Today, the biggest barrier to transitioning to 
long-term investments.
Agreement
technologies
carbon-neutral steel, beyond the necessary 
4.   Access to clean energies – the scale of the 
technologies reaching commercial maturity, is the 
steel industry’s energy needs are such that 
absence of the right market conditions. 
concerted cross-sector and government 
We estimate that carbon-neutral steel will result in 
efforts will be required to develop the 
30-80% higher cost versus today’s CO2 intensive 
necessary clean energy infrastructure.
steel. Additional y, not all steel and steel intensive 
Abundant,
5.  
Public instruments to accelerate innovative 
affordable
Sustainable
Circular
goods are subject to the same carbon costs, 
technology deployment to transition to 
clean energy
finance
economy
creating uneven incentives for carbon neutrality 
carbon-neutral steelmaking.
between market participants, including between 
domestic production and imports, and between 
In the long term, we believe the most effective 
steel produced from primary and secondary 
system for society will be creating a materials-wide 
sources. Without a shift in market conditions, 
system that accounts not only for CO2 emissions, 
we will not be able to unlock the means to 
but also accounts for the full circularity of 
reduce emissions from steel global y, while the 
materials. This will create healthy competition 
European steel industry increasingly risks 
between materials (e.g. steel, cement, aluminium) 
becoming uncompetitive.
in overlapping applications, accelerating the advent 
of a carbon-neutral and circular economy. 





9
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROADMAP
THE RI
E RI GH
GHT F
T FRAM
A E
M W
E ORK
WORK
PREVIOUS
BACK
FORWARD
The missing pieces 
However, we cannot do it alone and there are 
pieces of the puzzle missing. 
•  A Carbon Border Adjustment (CBA): is a key 
• Access to sustainable finance for  
policy mechanism needed to decarbonise, 
low-emissions steelmaking: Some of our 
equalise the market and create a fair competitive 
current R&D projects are funded by EU Horizon 
landscape, by aligning the carbon costs of EU 
2020. Accelerating and rol ing out low-emissions 
Sus
domestic steel producers with that of imports. 
steelmaking will need further public funding 
tain
fi
a
n
b
a
le
EU domestic steel producers are increasingly 
through, for example, the EU ETS Innovation 
nce
exposed to carbon costs through the EU’s 
Fund or the European Union’s Important 
Carbon Border
Emissions Trading System (ETS), while imports 
Adjustment
Projects of Common European Interest (IPCEI). 
are exempt yet continue to be responsible for 
The EU Sustainable Finance legislation should 
a significant part of CO2 emissions of steel used 
enable these investments to make a positive 
in Europe. 
contribution to the low-carbon circular 
economy, with realistic criteria. 
•  Access to abundant and affordable clean 
energy: This is currently not available nor 
• Accelerate transition to a circular economy: 
economical y viable in Europe. Improvements 
EU climate and materials policy should be 
are therefore needed in the EU state aid rules 
integrated, taking a lifecycle perspective to 
for energy and environment to enable the 
ensure that materials are used in a circular 
rol -out of low-emissions steelmaking.
way as much as possible.
Abu
Circular 
n
y
da
aff
nt
or
,
econom
c
d
le
a
a
bl
n
e
 e
 
nergy

10
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
Carbon Border Adjustment
•  To be effective, free alocation of ETS 
al owances, which are gradual y being phased 
ArcelorMittal supports the introduction of 
out by the European Commission, should be 
a Carbon Border Adjustment (CBA) as proposed 
maintained in the first stage of the CBA, 
in the EU Green Deal. This would mean that 
alongside compensation for high energy costs 
when steel comes into the EU, the carbon costs 
as an indirect result of the ETS. This is crucial to 
that European producers pay would be added 
enabling European steel to stay competitive and 
to the imported steel. This would ensure that 
ensure a smooth transition without disruption. 
EU-produced steel and imported steel tonnes 
A CBA based on ful  auctioning of ETS al owances 
that are in direct competition would have an 
from the start, would mean that the EU steel 
equal carbon cost, creating a fair market and, 
industry has to be sure it can pass through al  
crucially, encouraging investment in lower-
its decarbonisation costs, including ful  auction 
emissions steel production.
costs. This is not currently possible, as importers 
A CBA can be applied in various ways, as long 
set the price and can absorb levies at the border: 
as it neutralises the disparities in carbon costs 
their import volumes only represent a smal  
between domestic products and imports, and 
portion of their portfolio. This would be 
incentivises the transition to low-carbon steel 
counterproductive and is why there needs to be 
production. Crucial y, the CBA can be designed 
a transition period to al ow the decarbonisation 
in a WTO-compatible way, depending on how 
of the EU industry.
the environmental objective is set. This is how 
it could work best: 
•  To mirror this, European producers exporting 
to countries without carbon costs could apply 
•  Producers exporting to the EU should be 
for a rebate so that they are able to compete 
charged the same marginal carbon emission cost as 
on a fair footing with other market participants. 
European producers pay under the ETS. This should 
Ultimately, the CBA would encourage Europe’s 
The Energy Transitions Commission estimates 
serve as a catalyst to other countries to introduce  • The CBA levy should be a default one by sector, 
trading partners and companies to adopt 
that the total annual investment requirements to 
but can be reduced or removed if there is an 
their own carbon reduction schemes and invest in 
equivalent policies, in effect expanding the 
decarbonise the steel industry global y are around 
“Agreement of Equivalence” with a third country 
technologies to decarbonise. Introducing a CBA 
umbrel a of CBA beyond the EU, moving 
$80 bil ion per year. A well designed and fair CBA 
regarding their decarbonisation policy for that 
based not on marginal carbon costs, but average 
towards a truly global net-zero drive for steel.
and public and private financing to roll out the 
sector. Only with this system can the EU exercise 
carbon costs spread over all EU steel production, 
technology, would be a big step closer to making 
its climate diplomacy and show leadership 
We believe a poorly designed CBA that dilutes 
would not align EU domestic producers’ true 
this happen. 
global y. Such leadership cannot be reached by 
carbon costs for imports and includes a drastic 
carbon costs with imports. Not only would this 
basing a CBA on site-specific emissions for 
reduction in free ETS al owances without 
We know we need to invest more to decarbonise 
continue to erode EU producers’ competitiveness 
producers outside the EU. In practice, it would 
a transitional period, would be ineffective as 
our industry, but a CBA will ensure we all contribute 
and threaten their future, it would mean the CBA 
also be too difficult and could lead to gaming by 
it would fail to create the necessary carbon 
equal y to a low-carbon world. It means that the 
had failed in its objective of climate protection.
non-EU producers, who could send the steel made  conditions to transition to net-zero steel. 
price of steel will go up, adding a maximum of 1% 
•  The CBA should initialy be applied to primary 
with a low-carbon footprint to the EU and steel 
It could even increase the detrimental effects 
to the cost of a car for example. However, crucial y, 
goods, rather than end products like household 
made with a higher carbon footprint to other 
on EU domestic industry’s viability, due to 
the proceeds will be invested in large-scale green 
appliances and everyday tools. This is the most 
markets; this would not help their decarbonisation,  significant increased CO2 costs without providing 
technologies that lead to a new era of lower carbon 
practical way to introduce the CBA. 
or help to lower worldwide CO2 emissions. 
an effective increase in price to offset these costs.  emissions and a cleaner, greener steel industry.


11
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROADMAP
THE RI
E RI GH
GHT F
T FRAM
A E
M W
E ORK
WORK
PREVIOUS
BACK
FORWARD
Long term – valuing goods and products 
We believe such policy would better valorise the 
for their carbon and circularity footprint 
emissions and circularity advantages of steel over 
other material groups in overlapping applications. 
To meet the targets in the Paris Agreement 
Transparency of the real carbon and circularity 
and prevent the average global temperature 
footprint of a product, from production to 
rising by more than 1.5 degrees Celsius, 
end-of-life, will create healthy competition 
a long-term, fundamental shift in the way we 
between materials (e.g. steel, cement, aluminium), 
consume goods and products will be required. 
accelerating the advent of a carbon-neutral and 
Long term, we believe policies should converge 
circular economy. We welcome the European 
towards regulation that both minimises the carbon  Commission’s commitment to building a circular 
footprint of goods and products and maximises 
economy for Europe, as one of the foundations 
their circularity. 
of the Green Deal.
Such a policy framework would provide the 
We recognise that developing such a framework 
necessary incentives to accelerate consumer 
is some way off, so the current focus should be to 
behaviour change, encouraging a switch 
complement existing policies to create an effective 
to materials, products and energy sources 
CO2 policy framework by incorporating a CBA. 
with a lower carbon footprint and better 
This can effectively kick start the decarbonisation 
circularity credentials. 
of the steel industry through to 2030. 
Any revenues generated from such a policy 
As we have said in this report and in the Global 
framework could in turn be invested in carbon-
Climate Action Report published in May 2019, 
neutral and circular innovation projects, further 
we know we have a role to play, recognising that 
accelerating the transition to a carbon-neutral 
we are all responsible for stopping climate change. 
circular economy.
Now we need to go beyond recognising the 
problem, to col ectively make a difference.
” We welcome the European Commission’s commitment 
to building a circular economy for Europe, as one of the 
foundations of the Green Deal.”

12
ARCELORMITTAL CLIMATE ACTION IN EUROPE 2020
OUR COMMITMENT
OUR ROADMAP
THE RIGHT FRAMEWORK
PREVIOUS
BACK
FORWARD
Appendix
Additional data 
Sustainability at ArcelorMittal 
Sustainable development is at the heart of our purpose: inventing smarter steels for a better 
ArcelorMittal Europe CO2 intensity – 2018 baseline for 2030 target
world. This means preparing for and responding to the most significant long-term environmental 
and social trends that are transforming the context in which we operate. And so we listen careful y 
In 2018, ArcelorMittal Europe’s carbon intensity was 1.6 tonnes of CO2 per tonne of crude steel. 
to stakeholders, both local y and global y, and recognise a trend of rising expectations.
ArcelorMittal Europe includes ArcelorMittal Europe – Flat Products, ArcelorMittal Europe – 
Long Products, and Industeel. 
Our target to reduce our European Scope 1 CO2 intensity by 30% by 2030, over a 2018 baseline, 
does not include Ilva, as the baseline is set from 1 January 2018; Ilva joined the ArcelorMittal 
group on 1 November 2018. However the decarbonisation of Ilva is central to our business plan 
and details of this will be published in due course.
Basis of Reporting 
DISCLOSURE  INSIGHT ACTION
We differentiate as fol ows:
Operational boundary: we report on our CO2 
emissions using the control approach of the 
‘Direct emissions’ are the actual emissions 
GHG Protocol.
ArcelorMittal has been recognised by CDP for 
The ResponsibleSteel™ site standard was 
coming out of the chimneys of the sites. This 
its leadership on corporate transparency and 
publicly launched in December 2019, the 
data is based on a carbon balance at site level.
For more information, visit corporate-media.
action on climate change. In January 2020, 
first multi-stakeholder environmental, social 
arcelormittal.com/media/bjidbiwc/arcelor-
‘Process emissions’ are the aggregate of 
ArcelorMittal reached CDP climate leadership level 
and governance (ESG) standard for the steel 
mittal-basis-of-reporting-2019.pdf
direct emissions + emissions resulting from the 
with an ‘A-‘ grade for the first time, fol owing its 
industry. ArcelorMittal has played a leading 
combustion of exported waste gas used in the 
comprehensive response to the CDP Climate 
role in developing ResponsibleSteel and has 
power plant to generate electricity.
Change survey, which is now aligned with the 
committed to certifying 100% of ArcelorMittal 
TCFD (Task Force on Climate related Financial 
Europe – Flat Products sites by the end of 2020. 
Disclosures) recommendations. 
Further reading 
ArcelorMittal was ranked first in five 
categories relating to steel companies’ readiness 
Mission Possible: Reaching net-zero emissions 
for a low-carbon transition, in the July 2019 
in harder-to-abate sectors by mid-century  
CDP report ‘Melting Point’. 
www.energy-transitions.org/mission-possible
Energy Transitions Commission, November 2018 
Energy Transitions Indicators:  
www.iea.org/articles/energy-transitions-indicators 
IEA, December 2019

Designed and produced by Falcon Windsor www.falconwindsor.com


For more information
corporate.arcelormittal.com/sustainability/climate-action-in-europe
Published in May 2020
 
ArcelorMittal 
24-26, Boulevard d’Avranches 
L-1160 Luxembourg 
Grand Duchy of Luxembourg
corporate.arcelormittal.com