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ArcelorMittal Confirms $1.5 Billion Low-Carbon Steel Investment in France

ArcelorMittal will invest €1.3 billion (about $1.5 billion) to build a new electric arc furnace (EAF) at its steel site in Dunkirk, France. The company said the project marks a major step in cutting emissions from its French steel production.

The steelmaker announced the decision as French President Emmanuel Macron visited the Dunkirk site. ArcelorMittal said it now has more confidence to move forward because of recent policy and market changes in Europe and France. CEO Geert van Poelvoorde said,

“The decision to proceed with building an EAF in ArcelorMittal Dunkirk, to produce low-carbon emissions steel at scale for our customers, has been made possible because we now have the conditions in place to make this project a success…We will now focus on steering the Dunkirk EAF project to completion and commercial success.”

The EAF is scheduled to start up in 2029. It will have a capacity of 2 million tonnes of steel per year. 

A 2M-Tonne Shift Toward Scrap-Based Steel

Electric arc furnaces make steel mainly by melting scrap steel. They can also use low-carbon inputs like HBI/DRI (hot briquetted iron / direct reduced iron) mixed with hot metal. ArcelorMittal said its Dunkirk EAF will use a mix of scrap, HBI/DRI, and hot metal.

The company also gave a clear emissions estimate. It said the new EAF will emit about 0.6 tonne of CO₂ per tonne of steel and deliver three times less CO₂ than steel made in a blast furnace route.

This matters because steel is a hard sector to decarbonize. The industry produces significant CO₂e emissions, due to energy-intensive processes and heavy fossil fuel use. 

Per World Steel Association, the steel industry produces ~3 billion tonnes of CO₂ annually, accounting for ~9% of global emissions. The industry emits an average of 1.89 tonnes CO₂ per tonne in 2020. Producing one tonne of steel generates 1.7-1.8 tonnes of CO₂ on average, depending on technology use as seen below.

steel industry carbon emissions
Data source: World Steel Association

How Will France Support the Investment?

ArcelorMittal said part of the project will receive public support through Energy Efficiency Certificates (CEE). CEE is a regulatory mechanism in France that promotes energy savings and CO₂ reductions. The company said the support amount will represent 50% of the €1.3 billion investment.

The steelmaker also pointed to a key energy step in France. It said it recently signed a contract with EDF to secure a long-term supply of low-carbon, competitive electricity. The company described this as a major part of its energy strategy in France.

Electricity supply is critical for EAFs. The carbon benefit of an EAF depends heavily on how clean the grid is and how stable power prices are over time.

Why Did ArcelorMittal Invest in Bunkirk?

ArcelorMittal said three developments gave it confidence to confirm the Dunkirk investment.

  • Import Controls

First, it cited new European Commission proposals to limit unfair imports through a Tariff Rate Quota (TRQ) mechanism. ArcelorMittal said this approach would limit import quantities and impose additional duties if imports exceed set limits.

  • CBAM

Second, it pointed to proposed reforms to the EU’s Carbon Border Adjustment Mechanism (CBAM). ArcelorMittal said it expects these measures—if fully implemented—to restore “fair and competitive conditions” in the European steel market.

CBAM is the EU’s tool to apply a carbon price to certain carbon-intensive goods entering the EU. The European Commission says CBAM’s transitional phase runs from 2023 to 2025, and the definitive regime starts in 2026.

ArcelorMittal’s message was direct. It said it is important to implement the TRQ and adjust CBAM to close remaining loopholes as quickly as possible.

  • EDF Deal

Third, it highlighted its EDF electricity deal as another factor supporting the project.

€500M Bet on Electrification Demand

ArcelorMittal also highlighted another major investment near Dunkirk. At its Mardyck plant, close to Dunkirk, the company said it is starting up a new electrical steel production unit this quarter.

It said the company invested €500 million in this facility. ArcelorMittal described it as its largest investment in Europe in the last 10 years, excluding decarbonization projects.

Electrical steel is used in electric motors and other electrification applications. ArcelorMittal said the new plant supports the electrification of industrial and automotive uses. This point matters for demand.

Steelmakers often need clearer long-term demand signals for low-carbon materials before committing large capital to new production routes. 

From Blast Furnaces to EAFs: ArcelorMittal’s Broader Decarbonization Program

ArcelorMittal says it remains committed to reaching net-zero emissions by 2050. The company set this as a group-wide goal in 2020.

ArcelorMittal net zero or decarbonization roadmap
Source: ArcelorMittal

In its latest sustainability update, ArcelorMittal’s absolute emissions for its 2024 operating perimeter are almost 50% lower than its 2018 operating perimeter. The steel manufacturer further said it has invested $1 billion in decarbonization projects over that period.

The company is also shifting more steel production to the electric arc furnace (EAF) route. EAF production accounted for about a quarter of its global steelmaking in 2024, up from 19% in 2018.

In Europe, ArcelorMittal is moving ahead with several EAF-led projects. It said it started construction of a 1.1 million-tonne EAF at its long products plant in Gijón, Spain, which it expects will cut emissions by 1 million tonnes of CO₂e. It is also increasing output at Sestao, Spain, to 1.6 million tonnes by 2026, using two EAFs.

ArcelorMittal markets its low-carbon products under the XCarb® brand. The company said it can deliver low-carbon steel with a footprint as low as 300 kg CO₂ per tonne of steel, and it expected XCarb sales to rise to around 400,000 tonnes in the year it reported.

More notably, the company already operates an industrial-scale carbon capture and utilization (CCU) facility at Ghent, Belgium, with two additional pilots underway at the same site. 

Carbon Pricing and Competitiveness Reshape Steel

Steel decarbonization requires major capital and new infrastructure. It also needs policy support that reduces carbon leakage risk and helps companies compete with lower-cost imports.

The EU’s CBAM design aims to put a fair carbon price on imports and reduce the incentive to shift production outside the EU. The Commission notes that CBAM is also aligned with the phase-out of free allowances under the EU ETS to support industrial decarbonization.

At the same time, the steel sector still needs faster progress on emissions cuts. The IEA notes that steel emissions and emissions intensity need to fall by about 25% by 2030—around 3% per year—to get on track for net zero by mid-century.

ArcelorMittal’s Dunkirk EAF fits this direction. It shifts part of production toward a lower-emissions process and signals confidence that market rules are moving toward stronger climate and competitiveness safeguards.

Execution Phase: Can Policy and Profit Align?

ArcelorMittal said it will now focus on delivering the Dunkirk EAF project through to completion and commercial success.

The company also said it will review the possibility of building further EAFs elsewhere in Europe, but it plans to take a cautious approach based on its “economic decarbonisation” strategy.

For France, the project adds to broader efforts to keep heavy industry competitive while cutting emissions. Meanwhile, it reflects a wider shift toward low-carbon industrial investment for Europe backed by border measures, market defenses, and energy contracts.

For customers, the key outcome is supply. A 2-million-tonne EAF could provide lower-carbon steel at scale, starting in 2029, if the project stays on schedule and the policy measures ArcelorMittal cited take effect as planned.

The post ArcelorMittal Confirms $1.5 Billion Low-Carbon Steel Investment in France appeared first on Carbon Credits.

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McKibben opts for a small-tent climate movement

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A few months ago I went to a climate change forum at the Center for Brooklyn History. The panel I attended, “Confronting Climate Change: Understanding Deniers,” featured the prominent climate activist, Bill McKibben.

Bill McKibben. Courtesy https://billmckibben.com/.

I was curious to hear McKibben’s take on climate change deniers. I don’t regard the true deniers as a big problem – they’re only 11-15% of our country, according to most polls. Rather, I wondered if McKibben would label as “climate deniers” people who agree that climate change is a significant problem but disagree with his framing and his proposed solutions. I have worked for decades on energy and climate matters as an energy lawyer. Now, more than ever, I believe that to address climate change we need to build a big tent.

In the Q&A I tested where McKibben is on this by asking if he would label as a climate denier someone who subscribes to the main tenets of climate change science yet holds that natural gas has a role to play as a bridge fuel. (Our exchange starts at 1:12:45 of the video.)

This could have been a chance for McKibben to make clear that such a view isn’t climate denialism, even if he feels it’s misguided. But he punted, saying “I don’t care whether they’re deniers or not.” For good measure, he threw in his long-standing refrain that swapping coal for natural gas makes climate change worse, despite coal’s far higher carbon content per unit of energy.

674-MW methane-powered generating station, Salem, MA.

As you can hear in the recording, McKibben’s claim that gas is worse than coal draws on the work of Cornell scientist Robert Howarth. Yet McKibben didn’t mention that Howarth’s work is controversial and disputed by many scientists. The crux of the dispute is whether methane’s impact on warming should be measured with a 20-year or 100-year time frame.

Methane is a relatively short-lived greenhouse gas, with a lifetime of around 10 years, versus the 100-year life applicable to carbon dioxide. But each ton of methane is far more potent while in the atmosphere, trapping roughly 100 times as much heat as a ton of CO2. These cross-cutting facts about atmospheric methane — shorter life but greater potency than CO2 — have resulted in two opposing camps: one insisting on a 20-year timeframe for greenhouse gas accounting, the other adhering to the established 100-year frame. This matters because with a 20-year timeframe, generating electricity with natural gas (which, chemically speaking, is essentially all methane) is more damaging to climate than coal-fired electricity.

McKibben blew past this dispute. To hear him at the Center for Brooklyn History, one would have no inkling that there’s an active disagreement over which timeframe to use, that there are staunch climate activists who favor the 100-year time frame, and that the Intergovernmental Panel on Climate Change  (IPCC) generally uses the 100-year timeframe.

McKibben’s latest (2025) book. Published by W.W. Norton & Company.

McKibben also insisted that a discussion about natural gas’s potential role in mitigating climate change as a replacement for coal is irrelevant because solar “is now our cheapest resource.” McKibben’s claim, of course, suffuses “Here Comes the Sun,” his 2025 book that extols solar power as the cheapest solution for all of our energy needs. But this too is questionable, because it’s based on cost comparisons between solar farms and natural gas power plants (or nuclear power plants) that fail to consider that electricity supply and delivery is a complex system of wires and plants rather than individual power plants. Based on his remarks, McKibben is choosing to ignore studies such as the comprehensive 2025 report from the Clean Air Task Force that concluded that plant-level cost comparison “is a good metric to track historical technology cost evolution [but] is not an appropriate tool to use in the context of long-term planning and policymaking for deep decarbonization.” And the task force is not alone in finding that when electricity is treated as a system, solar loses its place as the cheapest low-carbon resource.

The dogmatism McKibben displayed at the Brooklyn meeting was unfortunate. We’re in a time when efforts to combat climate change are in retreat. A unified front is required to turn the tide. Instead of doubling down on absolutist positions, activists like McKibben who seem convinced that the solution to climate change is all-renewables, end of discussion, should be seeking common ground with others who want climate action but believe that nuclear power and natural gas must also play a role.

NYC Climate March, Sept 17, 2023. Photo: C. Komanoff.

Climate change activists need to build a bigger tent, rather than call anyone who disagrees with their positions a climate change denier. It is striking that McKibben stuck to his guns after saying in the same talk that the most important goal for everyone right now is to help climate change realists win more House and Senate seats in this year’s midterms. As some have noted, an absolutist position on natural gas appears less likely to achieve that win and politicians are following that advice.

Will McKibben evolve? He has demonstrated that he knows how to build a national climate movement centered around issues like divestment. Given the current political situation, he should focus on building an even bigger tent by welcoming all of the 85% who believe that we need to address climate change but do not agree with his ideological positions.

Rich Miller is an energy lawyer who has worked for a variety of stakeholders and now gives walking tours in lower Manhattan on the history of electricity. 

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Rebranding ‘Balcony Solar’ as ‘Guerrilla Solar’ won’t lift its climate value.

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Image generated with Claude. Why have we juxtaposed a bicycle with balcony solar? Read on.

First it was Plug-In Solar. Then it was Balcony Solar. Now it’s Guerrilla Solar, at least according to Inside Climate News, which yesterday proclaimed that The ‘Guerrilla Solar’ Era Has Arrived.

“It,” of course, is Modular solar panels. They’re the hot new photovoltaic solution: cheap enough to buy at Home Depot, easy to hang or prop to catch maximum rays, and small enough to fit on a balcony (if you’ve got one) and plug into your “home grid.” But, alas, too meager a generator of electricity to be more than a bit player in decarbonizing most U.S. homes.

How do I know? I’ve done the math.

A standard, lower-end 220-watt balcony solar array will produce 337 kilowatt-hours a year, or 28 kWh a month averaged over the course of a year. That’s for a 220W unit measuring 3.5 feet by 3.5 feet. (220W x 1/1000 x 17.5% x 8760 hours per year = 337 kWh. Calculation assumes a 17.5% full-year capacity factor, which is arguably generous for New York, where I live. )

Our balcony solar mashup. Top: an install in Germany. Bottom: Home Depot advert.

A typical U.S. home consumes 10,500 kWh a year, or 28 to 29 kWh per day, says Solartech, drawing on U.S. Energy Information Administration data. That puts a home’s daily power needs on par with a balcony solar unit’s monthly output. In effect, once each month the balcony array gifts a homeowner or renter a bit more than day’s full complement of electricity. And earth’s atmosphere gets the same respite: a 3 percent reduction in carbon emissions caused by the home’s electricity usage.

(The 3 percent figure could also be calculated directly by dividing 337 kWh per year of solar production by 10,500 kWh per year to run the home. For bigger or smaller arrays, just prorate your assumed wattage by my 220W; for 440W, say, double my figures.)

Balcony Solar metrics

Why write about balcony solar if it’s so inconsequential? CTC’s mission includes puncturing would-be climate balloons before they ascend too far. In the same vein, we practice quantification to make clear what does and doesn’t move the climate needle. (More on that further below.)

The best way to depict balcony solar’s climate value is to express it in terms of tangible metrics. We’ve selected two. Both assume the basic, lower-end PV array I assumed at the top: a 3.5 foot-square array whose peak output is 220 watts.

1. It would take 50 million 220W balcony solar units (bsu’s) to restore the climate benefit we destroyed in 2020-2021 when we shut the high-performing Indian Point nuclear power plant 32 miles from Midtown Manhattan.

2. A single person cutting back their driving by a mile a day would provide the same climate benefit over the course of a year as a single 220W bsu.

(Calculations in sidebar. Now you know why we led with images of an urban dweller as cyclist and balcony solar user.)

Yes, it’s dense — as befits a sidebar. The numbers tell a story. Follow the color co-ordination.

Ponder that: It would take fifty million smallish bsu’s to level up to the fossil fuel carbon emissions that Indian Point was keeping at bay by supplying the New York City area year in and year out with abundant carbon-free power. Deploying that many balcony solar units would entail 10 bsu’s for each of the 5 million households in the MTA’s service territory. (The Metropolitan Transportation Authority provides subway, bus and commuter rail transit in the five boroughs and seven suburban counties.) Or, if those same households upgraded to 1100-watt bsu’s, collectively they would still make up only half of the lost Indian Point power.

The second comparison, involving driving, is perhaps trickier to grasp but more interesting, since it relates to people’s behavior. Living differently isn’t part of public discourse, at least not in the USA, and especially when what’s being served up is using less. But “reducing,” as we might call it (remember “Reduce, Reuse, Recycle”? or, “Insulate, then Insolate”?) is just as potent for cutting emissions as switching to renewables — even more so when the reducing means driving less, considering the multitude of benefits that accrue from diminishing cars’ imprints on our communities. Still, staying on topic: driving just one fewer mile per day brings about the same shrinkage in carbon emissions as deploying one 220W solar array.

What Balcony Solar boosters are really saying

To be fair, our friends at Inside Climate News and, yes, The New York Times appear to be trying to modulate their balcony solar enthusiasm.

ICN‘s Dan Gearino, whom we cited up front, said he looked to Germany, the birthplace of balcony solar, to see if the units made sense for U.S. households. His takeaway: “It may make more sense financially to spend the cost of plug-in solar on insulation, air sealing or other basic measures to reduce energy use.” Hooray: insulate before you insolate.

Gearino helpfully interviewed renewables guru (and U.S. emigré) Craig Morris, who currently heads Germany’s plug-in solar trade association, Bundesverband Steckersolar. To Morris, balcony solar’s main advantages are that it provides power without taking up land, and that it affords people a way to “become participants in the transition to clean energy.” Behold, guerrilla solar. That, in turn, bolsters “the political consensus that supports the transition.” But Morris also made clear that widespread adoption of plug-in solar would only meet “about 2 percent of Germany’s electricity demand.”

Morris’s “about 2 percent” feels right for Germany. But not for the U.S., where widespread adoption of virtually any individual carbon alternative seems forever out of reach, and where the energy pie is so much larger — think giant fridges, freezers for beer, steroidal homes bursting with piles of powered toys, not to mention industrial and institutional electricity use that Morris correctly excluded from his figure.

Don’t forget to micro-dose. NYT headline + image for David Wallace-Wells’ guest essay (see text). Image by Rui Pu.

Both Gearino and Morris seem more measured than climate journalist Robinson Meyer, founding editor of Heatmap and frequent contributor to The Times, where he wrote about balcony solar in mid-June.

“New zero-carbon power kits will allow Americans to make their own energy choices,” declares the callout to the print version of Meyer’s NYT guest essay, The Tiny Solar Panel That Could Change America. (The even more expansive print headline invites us to “Forget Roofs. Backyard Solar Is the Next Frontier.”)

Wallace-Wells is of two minds. He calls balcony solar “a small way that apartment- and condo-dwelling Americans can take ownership of their energy choices and cut down their pollution on the margins.” No quarrel there, thanks to his qualifiers “small” and “on the margins.” Earlier, though, he opines that balcony solar units “have the potential to change how Americans understand and consume energy,” But read further and you’ll again see Wallace-Wells cautioning that “Balcony solar will play one small role in [the] drama” of transiting to the new world of clean, abundant energy.

Any such caveats are welcome these days, amid widespread solar hoopla. Still, it doesn’t seem to be in Wallace-Wells’ toolkit — or that of Inside Climate News and other mainstream climate journalists — to tutor their audiences as to the  true limits of balcony solar and other panaceas. Just like it wasn’t in their field of vision a decade ago to lay out the true stakes of shutting Indian Point as Riverkeeper was singing its siren song.

What’s Next for NY Balcony Solar

Meantime, as Canary Media reported recently (and helpfully), New Yorkers concerned with climate and affordability are waiting for NY Gov. Kathy Hochul to sign the recently passed SUNNY (Solar Up Now New York) Act legalizing balcony and other plug-in solar. It would be head-spinning (and politically suicidal) if she didn’t, given near-universal support ranging from Con Edison to DSA Assembly Member Emily Gallagher, who told Canary Media, “This is the most popular bill I’ve [ever] worked on.”

My guess is that Hochul is waiting for the right moment, and perhaps the right “package,” that can advance and not undercut her push to launch five large new nuclear power plants around the state — one to be built by the public New York Power Authority, the others to be constructed and operated privately. A little bit of math, a la what we offered here a la Indian Point, might help her out.

The governor also must manage the veritable hot potato of her deferred implementation of the landmark 2019 Community Leadership and Climate Protection Act. She might do well to consider jettisoning the act’s unwieldy cap-and-invest centerpiece in favor of a straight-up carbon tax (with the revenues distributed pro rata to the state’s households) in its place. That, far more than balcony (or guerrilla) solar, could blow open the door to the “innovations and technologies we cannot yet imagine” that Wallace-Wells fantasized about in his Times essay.

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The new SBTi Corporate Net-Zero Standard: what it means for business

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On 11 June 2026, the Science Based Targets initiative (SBTi) published the most substantial revision of its flagship corporate framework since its introduction. The SBTi Corporate Net-Zero Standard Version 2.0 takes effect on 1 February 2027 and reshapes the way companies approach their net-zero targets.

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