Energy and environment
Energy and Climate
We work:
- to ensure a long-term energy policy and a functioning electricity market with fully adequate production and competitive prices
- to ensure a climate policy that retains the competitive position of the base industries within EU
- to ensure that trading with emission rights shall not affect the price of carbon-dioxide free electricity
Sweden’s energy and climate policy is of crucial importance for the competitiveness of the steel industry. To carry out steel production demands a long-term perspective from both plant owners and politicians. Where energy and climate policy are concerned, only stable, long-term conditions that take account of industry’s requirements will lead to investments in Sweden.
The steel industry is an energy-intensive industry but also an energy-efficient one, since the energy in question is an essential and costly input that is used economically. The steel industry has cut the use of electricity and fuel, excluding the reducing agent, per produced tonne of steel by about 20% since 1990. Many steel products result in further energy efficiency outcomes when they are used, e.g. vehicles of high-strength steel.
The production of steel generates large quantities of carbon dioxide. Carbon dioxide emissions mainly derive from the reduction of iron ore to iron where the carbon is a necessity in the chemical process. The possibilities of radically reducing emissions are very limited even with modern technology.
Steel is also produced with recycled steel scrap as raw material and this process generates significantly lower quantities of carbon dioxide. Despite this, about 65% of the world’s steel production is iron-ore based. The constantly increased demand for steel combined with the long useful life of steel means, therefore, that steel must also largely be produced from iron ore since the availability of scrap does not cover the demand.
The climate problem must be solved in the long term at a global level. One-sided demands for reductions of emissions in Sweden or within the EU imply reduced competitiveness. A one-sided European commitment to trading with emission rights will have the effect of limiting steel production unless the allocation of emission rights is fully adequate and free of charge. To this is added the influence on the electricity price that emission trading implies, also for Swedish electricity production that in principle is free of carbon dioxide owing to the large share of nuclear power and hydro power. If steel production within the EU is limited on account of too high costs the production will take place somewhere else – with at least the same emission volumes.
To maintain the competitiveness of the steel industry it is, therefore, essential that the world’s steel producers face the same cost per unit of emitted carbon dioxide.
Environment
We work for:
- environmental standards, taxes and charges to be related to actual environmental benefit and the prevailing competitive conditions
- environmental legislation to be harmonised with that of other countries where the steel industry’s competitors operate
- for regulations to be simple and clear and not to counteract one another
- for environmental standards to be based on scientific grounds and to lead to environmental improvements from a holistic perspective
- environmental legislation to be technology-neutral and not to steer product development
Steel has long been part of an effective eco-cycle. When a product’s useful life has come to an end it is sent for recycling and is then sold on as a new raw material (scrap). In the production of steel, residual products are also formed that may then become part of other eco-cycles. A broad eco-cycle approach is the basis of a sustainable society.
All steel-manufacturing companies require a permit to operate in conformity with the Swedish Environmental Code. The permit is associated with a number of conditions, above all where emissions to air and water are concerned. To apply for a permit is a considerable and time-consuming task that includes e.g. an Environmental Impact Assessment (EIA) which describes the environmental impact that the operations give rise to.
To enable operations to be carried out under commercial conditions, the examination of applications must be effective and the permit-issuing authority must have sufficient competence and resources for the waiting time for decisions to be minimised.
The demands made on companies should be based on the environmental preconditions that apply to the individual plant and be both technically and economically reasonable.
The regulations within the environmental area are constantly increasing which mean that the administrative burdens on the companies are also accumulating. It is therefore necessary that the regulations are made as simple as possible. It is also important that the environmental goals of the public authorities do not counteract one another.
Steering tools shall be unambiguous so that their objective is clear. There shall not be different tools with the same purpose, i.e. double regulation since this may lead to unnecessary costs without real effect.
Environmental demands shall be based on scientific grounds and take account of e.g. the special properties of the metals and also local and regional conditions. These may relate to e.g. environmental quality standards or limit values for emissions.
Environmental legislation and steering tools must not favour a specific technology or imply limitations on product development – whether steel products or other products that the steel industry manufactures, so-called by-products.
Contact
Helén Axelsson
Energy and environmental director
tel +46 8 679 17 39
mobile +46 70 370 92 31
helen.axelsson@jernkontoret.se
