
EU ETS Emissions 2019
Europe’s coal power collapse exposes steel plants as Europe’s biggest emitters
Highlights
-29%
Fall in power sector emissions since 2013
-43%
Fall in coal power emissions since 2013
About
On Wednesday 1st April, the European Commission released preliminary 2019 emissions under the EU’s Emissions Trading System (ETS). The data covers emissions for around 96% of the ETS. The full data will be ready by 15th May. We back-filled the missing installations with last year’s emissions to create a full dataset.
Executive summary
Europe’s coal-to-clean transition is underway
We are well on the way to coal-free electricity; now we need to start on coal-free steel.
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01
We are well on the way to coal-free electricity.
The data shows coal power emissions have fallen by 43% since 2013. However, coal power generation is still responsible for 30% of EU ETS emissions, so this job is far from finished. This is particularly true for lignite fuelled power stations which have seen slower emissions declines.
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02
We now need to start on coal-free steel.
For the first time, the biggest emitter in both the Netherlands and Spain is revealed as a coal-fired blast furnace. Coal-fired blast furnaces are also the biggest emitters in the UK, France, Austria, Finland and Slovakia. The steel sector makes up 8% of EU ETS emissions.
Key Findings
Europe’s coal power collapse exposes steel plants as Europe’s biggest emitters
Conclusion
What would it take to make steel coal-free?
While traditionally considered hard to decarbonise, the technology to make new coal-free steel at these sites is developing quickly; the use of hydrogen is now considered a likely long-term solution. A number of demonstration projects are in development (Hybrit, for example) but significant policy support will be needed before large-scale deployment takes place. For recycled steel, coal-free production is already possible via electric arc furnaces (EAF) powered by renewable electricity.
Therefore, in the future, steel production – either powered by electrolysed hydrogen or powered directly by electricity using EAFs – will require huge amounts of zero-carbon electricity. Consequently an over-build of wind and solar across Europe is needed to help power steel’s transition. Adding up the power sector and steel, wind and solar electricity could replace at least 60% of 2019’s EU ETS emissions.
Governments should work hand-in-hand with steel companies to transition these sites. Most countries have just one or two blast furnaces, so bilateral solutions between governments and steel companies may yield the most optimal response.
The government response to COVID-19 must be to protect and create jobs. Steel sites are often steeped in over 100 years of steel-making history, still with 10,000’s of employees in the steel value-chain in the same region. As we bounce out of lockdown, COVID-19 provides an opportunity to give the investment and innovation needed to future-proof the steel industry, onto a pathway of coal-free steel.
Supporting Material
Acknowledgements
Acknowledgements
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