Locational effects of deep decarbonisation of basic industries

The challenge

Decarbonising the steel industry could result in a re-organisation of regional value chains and geographic clusters, because existing assets are partly devaluated. Sites in the inland (e.g. North-Rhine Westphalia) fear that they could loose shares because of higher transport costs, in comparison to sites on the coast. However, the set of actual investment criteria is highly complex.

What we want to achieve

This project is developing a model that simulates regional allocation of future investments in steel production capacities, in a more decarbonised and circular future European and global economy.

Scenarios derived by the model show potential regional effects and are meant to empower stakeholders in the region (regional policy, trade unions, civil society) to discuss challenges and opportunities of decarbonisation together with steel industry and science. Stakeholders will engage in the development of roadmaps fostering decarbonisation of heavy industry in their region.


Wuppertal Institute, Lund University