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ENVIRONMENT

‘We still have a chance’: Danish minister’s relief after Glasgow climate deal

Denmark's climate minister Dan Jørgensen has expressed relief that a meaningful climate change deal was struck in Glasgow last night, after a last minute move by India and China nearly knocked it off course.

'We still have a chance': Danish minister's relief after Glasgow climate deal
Denmark's climate minister Dan Jørgensen speaks at the announcement of the Beyond Oil and Gas Alliance in Glasgow on Tuesday. Photo: Andy Buchanan/AFP/Ritzau Scanpix

“For the first time ever, coal and fossil fuel subsidies have been mentioned. I’m very, very happy about that,” he told Denmark’s Politiken newspaper. “But I am also very disappointed that the stronger formulations were removed at the last minute.” 

Late on Saturday, the world’s countries agreed the Glasgow Climate Pact, after negotiations dragged on while governments haggled over phasing out coal. 

Denmark is one of the countries leading the phase out of fossil fuels, formally launching the Beyond Oil and Gas Alliance (BOGA) with ten other countries and states at the Glasgow summit on Tuesday, announcing an end to oil exploration last December, and committing to phase out coal by 2030 back in 2017. 

Jørgensen conceded that the deal struck on Saturday was nowhere near far-reaching enough to keep global temperature rises below 1.5C, which scientists have estimated is critical to limiting the impacts of climate change, but he said the decision to hold another summit in Egypt next year meant that this goal could still be reached. 

“The big, good news is that we could have closed the door today. If we had followed the rules, we would only have had to update the climate plans in 2025, and the updates would only apply from 2030,” he said, adding that this would be too late. “Now we can fight on as early as next year. This is very rare under the auspices of the UN.” 

Limiting temperature rises to 1.5C was still possible, he said. 

“We have a chance. The framework is in place to make the right decisions. There was a risk that that framework would not be there.” 

Jørgensen said that he had come close to tears when India launched a last-minute bid to water down the language when it came to coal, putting the entire deal at risk. 

“It was all really about to fall to the ground,” he said. “The assessment was that either the Indians got that concession or there was no agreement.” 

Sebastian Mernild, a climate researcher at the University of Southern Denmark, said he was disappointed by the lack of binding targets and global deadlines in the plan, but said it was nonetheless “a step in the right direction”, particularly the requirement that signatories to the Paris Agreement must tighten their 2030 emissions reduction targets by the end of 2022.

“It’s good that this thing with fossil fuels has got in,” he added. “It’s a pity that you don’t have to phase them out, but only reduce.”

He said the test of whether the Glasgow meeting is a success or failure would not come until the various aspects of the plan are approved and implemented by members states.

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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