The Indian steel giant, which uses coking coal – a major emitter of greenhouse gases – to make its product, will work with venture capital firms to help finance environmental solutions.

The fund will focus on technologies which work towards reducing greenhouse emissions and have relevance to the steel industry and its customers.

It has already made a $US20 million investment in Californian solar panel company Miasole.

Miasole is making new solar products which are more efficient and use less semi-conductor material than today’s legacy silicon modules.

ArcelorMittal also announced it had created a new carbon fund, a way into the carbon market.

The fund had an initial investment commitment of $US157 million and is looking at investment opportunities in renewable energy, methane capture and greenhouse gas reducing technologies – all of which have the potential to generate carbon credits.

ArcelorMittal said it intends to use carbon credits received from the green technologies for compliance in the European Union Trading Scheme.

ArcelorMittal’s key financials for 2007 show revenues of $US105.2 billion and a crude steel production of 116 million tonnes.