India, one of LeadIT’s founding Members, is hosting the G20 this year and is preparing a series of recommendations – T20 reports – that will be presented to G20 working groups, ministerial meetings, and at the G20 Leaders’ Summit itself. The G20 and its member states have a unique opportunity to collaborate with international financial institutions in the roll out of low-carbon steel production globally to ensure developing and emerging economies can participate in this transition.
In this T20 brief, authored by LeadIT, we explore how G20 members and international finance institutions (IFI) can collectively drive the growth of green steel and ensure that developing and emerging economies actively participate in the transition towards a sustainable future.
The steel industry, a major contributor to global emissions, is projected to expand significantly in the coming years driven by emerging economies. This surge in demand requires an urgent shift towards green steel production pathways. IFIs, including multilateral development banks (MDBs), can play a pivotal role in ensuring that developing and emerging economies actively participate in this transition. As the G20 shapes the mandates of IFIs and international climate finance, its member states hold the key to becoming influential stakeholders in the worldwide deployment of low-carbon steel production.
The brief, based on interviews with IFIs, provides five recommendations for the collaboration between the G20 and IFIs, aimed at establishing the necessary knowledge, support, and infrastructure for a rapid transition to green steel in developing and emerging economies:
- Act as knowledge partners for governments
- Support roadmaps for hydrogen
- De-risk and finance first-movers in industrial production, and small and medium-sized enterprises in green value chains
- Support demand through procurement strategies in own operations
- Support secondary steel production and circular business models
