- Swedish steel giant SSAB’s Martin Pei called for an international carbon tax for the steel sector but warned against it being just an act of greenwashing.
- The steel industry accounts for 8 per cent of global carbon emissions and is among one of the hardest sectors to decarbonise
Swedish steel major SSAB’s head Martin Pei, on the side lines of the climate conference COP 26, called for the introduction of an international carbon tax in the steel sector in order to reduce the industry’s carbon impact.
However, Mr Pei added that the move should be more than just an act of greenwashing. He said that there should be more transparency to prevent companies from making the same products but having green branding.
Greenwashing, which is also known as green sheen, is a business practice wherein a company uses misleading PR and marketing to convey their products or services to be environmentally friendly.
He also added that putting a price on carbon emissions is a requirement for the steel industry to decarbonise in a rapid time frame.
The International Monetary Fund (IMF) suggested a system wherein developed nations should have a price of US$ 75 (£56) per tonne of carbon, which would be cut to about US$ 50 (£37) and US$ 25 (£18) in developing and other less developed countries.
Moreover, the metals industry is among one of the largest emitters of carbon. It is also one of the sectors which are the toughest to decarbonise.
According to the industry body, World Steel Association, the steel industry accounts for 8 per cent of total carbon emissions in the world.
In view of this, let us take a deep dive into 2 FTSE listed steel focused stocks in the industrial metals and mining sector and how they have performed:
- Bushveld Minerals PLC (LON: BMN)
AIM-listed firm Bushveld Minerals is low cost, vertically integrated vanadium producer and energy solutions provider based in South Africa. Its product portfolio serves various sectors such as steel, energy and chemicals.
The company recently made the final repayment amount of 1) cash-based payment of US$ 2.5 million and accrued interest of US$ 0.512 million 2) and the balance US$ 9 million was paid through the issue of 66.89 million ordinary shares.
The repayment was made to Luxembourg based steel production company Duferco for the acquisition of Vanchem, its vanadium processing facility.
(Image source: Refinitiv)
Bushveld’s shares were trading at GBX 10.10, down by 0.98 per cent on 15 November at 10:52 AM BST, while the FTSE AIM All-Share index, which it is a part of, was at 1,255.65, up by 0.24 per cent.
The company’s market cap stands at £121.68 million as of Monday.
- Metal NRG (LON: MNRG)
Main market-listed firm Metal NRG is a natural resource investing company.
The company is part of a co-investors’ consortium, which was led by clean energy company EQTEC (LON: EQT), for the recommissioning of a biomass waste-to-energy plant in Italy.
The plant is expected to be recommissioned by Q2 2022, according to MNRG.
(Image source: Refinitiv)
Metal NRG’s shares were trading flat at GBX 0.42 on 15 November at 11:05 AM BST, while the industrial metals and mining sector, which it is a part of, was at 5,935.29, down by 1.52 per cent.
The company’s market cap stands at £4.35 million as of Monday.