Forging the Path to Net Zero in the UK Metals Industry

The UK metals manufacturing sector, encompassing metal fabricators, forgers, casters, and beyond, is working diligently to decarbonise while simultaneously playing a key role in the net zero economy. As global demand for metals rises, the industry must address its carbon footprint while maintaining its economic importance.

Current Role of the Metals Industry in the UK Economy

The UK metals industry currently provides over 1 million jobs across 11,500 companies, but the sector faces challenges in scaling its workforce to meet growing demand and upskilling workers to ensure competitiveness in a net-zero future.

Beyond economic significance, metals manufacturing plays a vital role in the green economy. The production of wind turbines, electric vehicle parts, energy-efficient products, and the infrastructure required to support renewable energy systems all rely heavily on metals.

Melting down emissions

The metals industry is the largest industrial contributor to greenhouse gas emissions in the UK, the steel industry alone accounts for 14.2% of manufacturing emissions and 2.4% of total UK greenhouse gas emissions.

The production of metals, including steel and aluminium, is energy-intensive, with significant direct (scope 1) and indirect (scope 2) emissions, as well as emissions embedded in the supply chain (scope 3).

Historic emissions data on the metals industry as a whole is difficult to source. One example which demonstrates the progress of the industry is the manufacture of basic iron and steel, which in the UK produced the equivalent of almost 10 million metric tons of carbon dioxide in 2022. This represents a 60 percent decrease compared to the levels of emissions resulting from iron and steel manufacturing in 1990. Whilst the reduction compared to 1990 is clear, what is also apparent is that since 2015 emissions reduction has slowed.

The total emissions related to metal product consumption in the UK are still around 29 million tonnes of CO2 equivalent (tCO2e) annually, which is 7.5% of total UK based co2 emissions. The challenge is clear: the industry must find ways to meet rising demand for metals while reducing its emissions.

Support from Industry Bodies and Government Initiatives

The UK Metals Council represents 12 major trade bodies working to modernise and decarbonise the sector. This collaborative effort involves organisations like The Aluminium Federation, The British Constructional Steelwork Association, The British Metals Recycling Association, and UK Steel. These bodies are crafting industry-wide policy recommendations while also developing sector-specific solutions.

Government Support

To aid the transition, the UK government has introduced several funding programs aimed at decarbonising heavy industries:

These programs and reliefs are essential to incentivising energy efficiency improvements and encouraging manufacturers to invest in carbon reduction technologies. They help offset the financial challenges of decarbonisation, enabling businesses to take meaningful steps towards achieving their sustainability goals.

Hammering out the challenges 

The metals industry faces several significant challenges as it strives toward net zero, including:

Despite these challenges, a survey by the UK Metals Council revealed that while 85% of respondents were aware of net zero goals, only 39% had set clear sustainability targets.

Opportunities for a Net Zero Metals Industry

Energy Efficiency and On-Site Generation

The same UK Metals Council survey found that 42% of manufacturers had invested in on-site renewable energy or energy efficiency measures. These investments not only help mitigate the financial pressure of rising energy costs but also directly reduce emissions. A third of respondents also stated that they were adapting their production processes to lower energy consumption, further contributing to emission reductions.

For those transitioning to on-site renewable energy sources, such as solar or wind power, the benefits are even greater. By generating their own clean energy, businesses can effectively eliminate their Scope 2 emissions. This shift towards energy independence positions manufacturers as leaders in sustainability, enabling them to meet both environmental and financial goals.

Recycling and Circular Economy

Recycling is a major opportunity for reducing emissions. Reusing scrap metals can significantly lower energy consumption and carbon emissions. For example, recycling aluminium requires 95% less energy than producing primary aluminium from raw materials. By enhancing recycling processes and increasing the use of secondary materials, the industry can significantly reduce its environmental impact.

The Role of Net Zero Steel

Net zero steel will be essential for a decarbonised economy, yet currently, there is no clear market for these products. Without incentives or market differentiation for low-carbon steel, producers face high costs without reward. UK Steel’s Director General, Gareth Stace, emphasises the need for government support to create a market for net zero steel:

“The UK government must work to establish a market for net zero steel, supporting emerging products and ensuring that UK steelmakers can compete in the short as well as the long term.”

Transforming the Industry

Meeting net zero targets in the metals sector will not only reduce emissions but also unlock new growth opportunities, both domestically and internationally. The UK has the potential to become a global leader in the production of net-zero metal products, positioning itself at the forefront of industrial sustainability.

For businesses looking to lower emissions, reduce energy costs, and become more sustainable, now is the time to act. Reach out to our experts today to discover how we can help you achieve your sustainability goals.

References: 

https://www.statista.com/statistics/485466/greenhouse-gas-emissions-from-the-manufacture-of-basic-iron-and-steel-uk/#:~:text=The%20manufacture%20of%20basic%20iron,and%20steel%20manufacturing%20in%201990. 

https://www.makeuk.org/about/uk-steel/net-zero-steel—a-vision-for-the-future-of-uk-steel-production