The industrial organizations ResponsibleSteel and Low emission Steel Standard (less products in standard dosage) have jointly prepared a new policy briefing, steel decarbonization scale, calling for a more pragmatic and comprehensive strategy to reduce emissions in the European steel sector. The briefing participants urge EU policymakers to recognize the limited availability of scrap and promote efforts to decarbonize all steel production methods.
The European steel industry contributes significantly to the region's carbon dioxide emissions, accounting for about 6% of the total emissions in the European Union. Given the EU's commitment to reduce net greenhouse gas emissions by 55% by 2030 and achieve zero emissions by 2050, the briefing highlights the need for clear, fair and effective incentives for decarbonization efforts.
One of the key ideas of the report is that current initiatives such as the European Steel and Metals Action Plan (ESMAP) and emerging proposals for voluntary carbon labelling may fail if they rely too heavily on scrap-based production without taking into account supply constraints. According to the International Energy Agency (IEA), despite the high level of steel processing (about 85%), currently only 32% of global steel demand can be met through the use of scrap due to the long service life of steel products. This figure is expected to grow to only 46% by 2050.
"Scrap metal is a valuable but limited resource," said Dr. Martin Theuringer, Secretary General of LESS aisbl. "A decarbonization system that does not take this into account can distort markets and fail to deliver real emissions reductions. We need an approach that promotes progress in all types of steel production."
To solve this problem, organizations propose to introduce a "steel decarbonization scale", which complements the traditional accounting of carbon emissions by taking into account the ratio of scrap and primary cast iron used in steel smelting. This approach, which has already been recognized in international policy discussions, including within the framework of the G7, aims to:
Avoid unstable competition due to limited scrap supplies
To stimulate emissions reduction in both primary and secondary steel production
To bring it into line with the principles of the World Trade Organization (WTO). and support technology-neutral solutions
,
