ArcelorMittal to invest $10 bn to cut emissions by 25%

ArcelorMittal, the world’s top steel firm, announced Thursday it will invest $10 billion to cut its global carbon emissions by a quarter by the end of the decade.

The company also increased its European target to a 35-percent reduction by the end of the decade.

ArcelorMittal, which had already set itself a 2050 target to make its operations carbon neutral, plans to launch its first carbon-neutral facility in Spain by 2025.

“As the world’s most prolific material, steel can make a huge contribution to the decarbonisation of the global economy,” CEO Aditya Mittal said in a statement.

“Zero carbon-emissions steel has the potential to be the backbone of the buildings, infrastructure, industry and machinery, and transport systems that will enable governments, customers and investors to meet their net-zero commitments,” he added.

The company’s reduction targets do not take into account indirect emissions, however, such as those during transport of raw materials.

ArcelorMittal also released its second quarter results that show the company is benefitting from strong demand for steel.

The Luxembourg-headquartered group posted a net profit of $4 billion (3.4 billion euros) for the quarter and $6.3 billion for the first half of the year, the best half-year performance for the firm since 2008.

Sales rose by 19 percent to $19.3 billion.

It also raised its forecast for the increase in global steel demand this year.

ArcelorMittal now sees demand rising by 7.5 to 8.5 percent, up from its earlier estimate of an increase of between 4.5 and 5.5 percent.

The firm also unveiled a share buyback programme worth $2.2 billion.

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