IAM_COMPACT_D4.8_Sectoral_and_cross-sectoral_analysis_Update

This report covers the results of Task 4.4, 'Sectoral and Cross-Sectoral Analysis', of the IAM COMPACT project. First, it presents the findings of Study 9 of the 2nd cycle of the project’s Policy Response Mechanism (PRM2) on the decarbonisation of the EU steel industry, which builds upon the findings of Study 4 of PRM1. The report analyses the influence of various policy instruments, such as the Carbon Border Adjustment Mechanism (CBAM), trade of direct reduced iron (DRI), and subsidies for green steel production, on the relocation of iron and steel production, as well as on costs and emissions. To do so, it utilises several modelling frameworks, including GCAM, MARIO and ITOM. Second, it documents a study building on six scenarios aimed at examining the impact of financing costs on global hydrogen markets, trade flows, and hydrogen-related investments in the year 2050.