Opinion: POSCO needs to go green faster to keep up with global shifts

POSCO, South Korea's leading steelmaker, has announced plans to double its sales of "eco-friendly" steel by 2030 as part of its new vision to become a "green energy and global business pioneer." This move comes as major steel users, including Maersk, Mercedes-Benz Group, BMW, Volvo Cars, and Apple, have each declared that green steel will be a crucial part of their future manufacturing plans. However, POSCO's carbon neutrality roadmap is incomplete, and estimates suggest that the company's emissions intensity will only be reduced by 12.4% by 2030, well behind the recommended reduction of 29%. The EU's new Carbon Border Adjustment Mechanism (CBAM) could increase the cost of South Korea's high-emission steel exports by 299 billion won by 2026, making further domestic action imperative. The South Korean government has a crucial role to play in facilitating a timely industrial transition that will safeguard both major and minor players in the steel industry.

Resource: https://asia.nikkei.com/Opinion/POSCO-needs-to-go-green-faster-to-keep-up-with-global-shifts

Author: Seungwan Kim, May 2023