Low Emission Steel Standard (LESS) has joined a consortium of European steel producers to support a public statement in support of the use of a sliding scale for steel labeling in the EU, Kallanish reports.
The 25 signatories of the statement include major European steel producers such as ArcelorMittal, Tata Steel, Thyssenkrupp, Dillinger and Voestalpine. This is in addition to Volvo, Climate Group, Steelwatch and Stegra.
The European Commission is expected to introduce EU labeling for steel as part of the Production Acceleration Act, and as part of this, the group called for the introduction of a sliding scale to ensure real decarbonization. Supporters of the project claim that this will allow them to "create a clear, trustworthy and technologically neutral structure."
It says that this approach is fair and effective and contributes to a real reduction in emissions at all stages of production. It adds that the sliding scale reflects the efforts of primary steel producers to decarbonize and offers a clear action plan for continuous improvement. It also reflects the limited availability of high-quality scrap and the need to decarbonize both primary and secondary steel in Europe.
The approach originally proposed by the International Energy Agency (IEA) has been adopted by ResponsibleSteel, LESS, and CISA to develop their systems.
This approach also prevents carbon leakage and ensures that emissions are accounted for in the third category, thus avoiding emissions outsourcing. It also meets market requirements and is confirmed by LESS certificates, which classify steel products based on their specific emissions and scrap fraction.
The statement warns that an impact-only approach could lead to a redistribution of emissions and job creation abroad. However, this position contradicts a statement by the EU Sandbag think tank, which says that a sliding scale approach can distort incentives, ignore product diversity, and undermine consistency. Instead, the organization offers an alternative method.
Carrie Bone United Kingdom
Kallanish.com
