The carbon factor in the strategic development of the metallurgical industry: industry-specific constraints and new opportunities

Abstract

Over the past decade, climate policy in general and decarbonization processes in particular have become the subject of intense scholarly debate. Alongside studies substantiating the need to reduce greenhouse gas emissions, there is a growing body of research that views the climate agenda as a form of geoeconomic pressure. Regardless of these differing perspectives, the carbon factor significantly affects industrial operating conditions through changes in cost structures and technological priorities, as well as through new conditions governing international trade. Its impact is particularly pronounced in the metallurgical industry, which is among the most energy-intensive industries and has a substantial carbon footprint. At the same time, metallurgy plays an important role in Russia’s export structure, making it necessary to assess the long-term implications of decarbonization for the industry. The objective of this study is to substantiate a strategic interpretation of the carbon footprint at the industry level and to identify its role in defining the long-term development priorities of the metallurgical industry. The study is methodologically grounded in V.L. Kvint’s concept of strategizing, which provides a framework for structuring industry development around fundamental values and strategic interests while taking into account factors in the external environment. The carbon intensity of metallurgical production should be treated as a measurable industry-level indicator that enables changes in the external environment to be reflected in investment and technology-related decisions. The practical implications of this research pertain to its utility in formulating and iteratively adjusting industry and corporate development strategies within the metallurgical industry and other industries, including the energy, oil and gas, transport, and chemical industries. Furthermore, the proposed analytical framework informs decisions on technological modernization and supports the development of circular production models.