Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The South African Iron and Steel Institute (SAISI) has increased its engagement on climate policy from 2022-2024. It appears supportive of the decarbonization of the steel industry, and has shown some evidence of support for carbon border adjustment mechanisms.
Top-line Messaging on Climate Policy: SAISI has limited top-line communications on climate policy. In a September 2024 edition of its ‘Steel Matters’ newsletter, the association appeared to support policy intervention to price carbon into the economy in South Africa.
Engagement with Climate-Related Regulations: SAISI has shown some evidence of transparent engagement on climate legislation and regulations, including carbon border adjustment mechanisms. For example, in an October 2023 edition of its ‘Steel Matters’ newsletter, SAISI appeared to support the EU Carbon Border Adjustment Mechanism, and a carbon border adjustment tax in South Africa. More recently, in a March 2024 ‘Policy News’ press release, the association touched on the UK Carbon Border Adjustment Mechanism, but did not take a clear position on the scheme.
Further, in a February 2023 ‘Steel Matters’ newsletter, SAISI appeared to support tax rebates for renewable energy installations in South Africa, and on its ‘Steel is Green’ webpage, accessed December 2024, the association appeared to support policy to improve circular product design for products containing steel.
Positioning on Energy Transition: SAISI has improved its positioning on the decarbonization of the steel sector from 2022-2024. In April 2022, SAISI’s website stated that improving the efficiency of steel-using products is more important than reducing the emissions associated with initial steel production. However, as of December 2024 the association has increased its positive messaging on measures to decarbonize the steel industry.
For example, in its September 2024 ‘Steel Matters’ newsletter, the association supported the decarbonization of the steel sector both globally and in South Africa, and supported the implementation of policies to foster decarbonization of steelmaking in South Africa. Additionally, in an April 2023 edition of the newsletter, SAISI appeared to support various routes for decarbonizing steelmaking, including support for the increased use of electric arc furnaces, and supporting carbon capture and storage, hydrogen and renewables in the steelmaking process.