[ COLUMN ] supply by 15-20 million tons . 2 Between 2025 and 2030 , this high demand is mostly driven by major steel consumers , such as automotive OEMs , who need to secure significant volumes of green steel well before the end of the decade in order to meet their near-term emission reduction targets , the study points out . 3
By the same token , they need to satisfy their customers ’ demand for greener endproducts - not least because a majority of end consumers are willing to pay a premium for decarbonized products . In a 2023 survey performed by Boston Consulting Group among end consumers across the EU , the U . S ., China and Japan , 57 % of respondents said they would “ definitely ” or “ probably ” consider buying a CO 2 net zero manufactured product for their next purchase . And a staggering 84-94 % of respondents stated their “ willingness to pay a markup ” when it comes to CO 2 net zero manufactured cars , EVs , and appliances , respectively . 4
This rapid change in end consumer behavior is mirrored by an equally dynamic development in the steel industry . In addition to consumers ’ maturing priorities , there are several reasons for our industry ’ s green evolution : First off , EU and other , recently introduced supply chain regulations will oblige manufacturers using steel as a base material to account for transparent value chains and their CO 2 footprint . Secondly , customers have come to perceive steel products differently now : In fact , they have come to recognize that steel is a product that can be decarbonized , making steel even more relevant to companies . Today , green steel is an added value asset helping companies to reach their decarbonization targets . Thirdly , the market has seen a greatly increased awareness of more sustainable ways to produce steel as such .
CO 2
-reduced steel is the green future for a century-old industry
In the case of Kloeckner Metals Germany , a subsidiary of Klöckner & Co SE , one of the world ’ s largest producerindependent distributors of steel and metal products , more and more of our customers and partners share this view
Felix Schmitz , CEO Kloeckner Metals Germany . Photo : Kloeckner Metals Germany
and are making sustainable purchasing decisions in order to cut CO 2 emissions and in turn develop CO 2
-reduced steel solutions : At Kloeckner , we see the decarbonization of the value chain as a particular opportunity .
Following our introduction of the first Kloeckner
CO 2
-reduced products into the market in 2022 , defining the carbon footprint of the individual products ( in light of a missing , industry-wide definition of the term ‘ green ’) has been one of the biggest tasks at hand , as I reported in an article for Green Steel World Magazine in May 2023 5 .
At Kloeckner Metals Germany , we see the challenge our customers are faced with in day-to-day operations : For
2 https :// media-publications . bcg . com / Green-Pricing-Opportunity-for-European-Steelmakers . pdf , p . 1
3 dito , p . 4
4 https :// www . bcg . com / publications / 2023 / consumers-are-willing-to-pay-for-net-zero-production #
5 https :// greensteelworld . com / the-high-tech-formula-driving-kloeckners-green-steel-approach
Green Steel World | Issue 10 | February 2024 19