Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 26

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 26
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, government and societal support for the reduction of carbon emissions in particular regions and the advancement of technology and infrastructure related to the reduction of carbon emissions over time. Future developments may affect such assumptions, and this may render the achievement of ArcelorMittal’s targets more difficult, or even impossible, to achieve for cost or other reasons. The Company’s decarbonization strategy includes the objective of carbon neutrality by 2050; the C ompany's medium-term objective and associated decarbonization capital expenditures are currently under review. ArcelorMittal's ability to achieve this objective depends on numerous factors and assumptions, including the costs of green hydrogen (meaning hydrogen produced exclusively from renewable sources) and its evolution over time, the construction of DRI and EAF facilities, the development of CCUS infrastructure and the timing of the introduction of GHG reduction requirements and supportive policies in applicable jurisdictions. In November 2024, the Company announced that it was unable to take final investment decisions on projects to replace blast furnaces with lower- carbon technology in Europe due to current conditions in European policy, energy and market environments, given green hydrogen's very slow evolution towards becoming a viable fuel source and natural gas-based DRI production in Europe not yet being a competitive interim solution. The development of l ow emissions technologies depends on more stringent global GHG reduction requirements and/or the introduction of carbon prices in each jurisdiction , alongside the introduction of effective policies to secure a level playing field. However, since Europe is currently the only major market to have implemented a cost on carbon, the Company has indicated that it needs further support from host countries, first and foremost from the European Union and its Member States, through more supportive policies designed to avoid “carbon leakage” and provide compensation for the significantly higher costs, while at the same time maintaining a fair and competitive landscape (particularly given that the CBAM adopted by the EU does not appear sufficient to ensure the level-playing field necessary to maintain the competitiveness of the steel industry in Europe). In addition, ArcelorMittal’s targets have been based on the assumption that public funding covers 50% of the total cost of decarbonization (capital expenditures and higher operating expenses, which are expected to be significant) so that the Company and industry are not rendered uncompetitive during this transition period. The Company believes this assumption is reasonable (and funding from certain governments has been approved), but such funding is subject to changes in government and policy, among other factors, and may not be achieved. See “Business overview—Sustainable development— Climate change and decarbon