Co-abatement of carbon and air pollutants emissions in China’s iron and steel industry under carbon neutrality scenarios

Abstract

Co-abatement strategies that can reduce both CO2 and air pollutants emissions are essential for the green and low-carbon transition of China’s iron and steel industry. Most previous studies analyzed CO2 and air pollutants reduction policies independently, but the synergies and tradeoffs between the two types of policies have rarely been investigated. By establishing a bottom-up simulation model that considers combinations of different policy objectives, crude steel demand and technology development options, this study couples air pollutants reduction into the carbon neutrality pathways to evaluate the synergistic effects of different abatement strategies in China’s iron and steel industry. The study also incorporates the indirect CO2 and air pollutants emissions from the upstream energy production sectors into pathway analysis, in order to avoid cross-sectoral carbon and air pollution leakages. The results show that the current emissions reduction policies in the iron and steel industry are far from achieving the carbon neutrality goals. To achieve synergistic reduction in CO2 and air pollutants emissions, the short term policies should mainly rely on increasing the share of the scrap-electric arc furnace (EAF), while reducing crude steel demand and promoting breakthrough technologies, particularly hydrogen-based direct reduction, should play a major role in the long term. Meanwhile, China should promote the decarbonization of power generation and hydrogen production to reduce indirect CO2 and air pollutants emissions from the upstream sectors.