Policies to decarbonize the steel industry in East Asia

Climate mitigation under S-shaped energy technology diffusion: Leveraging synergies of optimisation and simulation models

“…Even though I use scenario results of the structurally similar REMIND model, this implies that technology diffusion in non-power sectors is not governed by the principles of the FTT models. While this approximation is a reasonable interim solution, future research could extend this study to a more comprehensive coupling, for example linking REMIND with multiple available FTT models, not only for the power sector, but also for transport (Lam et al, 2018), heating (Knobloch et al, 2018), and industry (Vercoulen et al, 2019). This would enable a more immediate mapping of energy technologies and regions and provide a more realistic picture of technological change across sectors.…”

“…Because the energy transition requires widespread electrification of end-use sectors combined with power sector decarbonisation, I here focus on the power sector model FTT:Power as the most prominent example (Mercure, 2012;Mercure et al, 2014). However, the conceptual framework is universally applicable to a wide range of diffusion processes in other sectors such as transport (Lam et al, 2018), heating (Knobloch et al, 2018), and industry (Vercoulen et al, 2019).…”

Carbon-Neutral Steel Production and Its Impact on the Economies of China, Japan, and Korea: A Simulation with E3ME-FTT:Steel

“…Korea's crude steel production was estimated at 70.4 million tons in 2021, an increase of 4.9% compared with 2020. Vercoulen et al [32] observe that "the Korean government initiated the exponential growth of its steel industry in the 1960s and the country has been ranked 6th in terms of total crude steel production since 1995". This growth has kept pace with Korea's overall economic growth.…”

“…This growth has kept pace with Korea's overall economic growth. However, the Korean economy is currently not experiencing rapid growth, and there has been a decline in steel demand [32].…”

“…The drawback of using time series econometrics to determine energy demand is that it fails to track systematic change as the occurrences of systematic change are limited. Future Technology Transformations (FTT) was developed to address this shortcoming, first in the power sector [39] and then in the passenger road transport [40], residential heating [41], and the iron and steel sectors [32]. FTT builds on evolutionary economics and seeks to mimic the diffusion dynamics of technologies within a sector by considering economic performance, technology lock-ins, substitution frequencies, and sectoral limitations.…”