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LKAB calls for fair rules on carbon emissions

LKAB MK3 pelletizing plant in Malmberget.

BRUSSELS: LKAB is calling for fair treatment for its climate-smart, low-C02 pellets in EU regulations concerning carbon dioxide, carbon permits and efforts to reduce carbon dioxide emissions.

In a Bloomberg article, LKAB points out that current rules actually pose an obstacle to reducing emissions that have a negative impact on climate.

"This is totally wrong. There should be only one benchmark for two forms of iron ore that can substitute for each other," says Stefan Savonen, Vice President, Energy and Climate, LKAB, in an article from Bloomberg.

A comparison can be made with steel producers in Europe who mainly produce their own sinter fines or pellets at integrated steelworks. They are allotted, free of charge, emissions allowance corresponding to171 kilograms of carbon dioxide per tonne. In comparison, LKAB receives permits for 30.7 kilograms of carbon dioxide per tonne pellets. That is merely one-sixth of the allowance for steelmills.

LKAB has previously pointed out the differences in the Carbon Footprint comparison, where the environmental advantages of LKAB's pellets over European steelmill sinter are clearly demonstrated.
"We just want a fair system that promotes processes that are effective for the climate," says Stefan Savonen.

Link to Bloomberg article

Stefan Savonen, Vice President, Energy and Climate, LKAB