The Standard focuses on reducing greenhouse gas (GHG) emissions from the global steel industry with a science-based glidepath to reduce emissions in line with the goal of the Paris Climate Agreement to achieve a 1.5° C scenario. The Standard offers a single, technology-agnostic protocol that would apply to all steel producers equally on a global basis and would enable steel customers to know and compare the actual carbon emissions associated with steel products.
GSCC is one of several groups and companies advocating for a global steel standard. Some are promoting a standard that features a “ferrous scrap usage sliding scale” – one standard for steel made from traditional production processes, and another for steel made from circular processes. By contrast, The Steel Climate Standard establishes a single set of process-agnostic product standards and requires steel manufacturers to establish science-based emission targets.
“Creating a dual standard would allow high-carbon emissions steel to be prioritized over lower-carbon steel. This would serve to discourage innovation and allows high-carbon steelmakers to postpone making changes in their production process,” said Greg Murphy, Executive Vice President & General Counsel, Nucor Corporation, and Chair of the GSCC.
The Steel Climate Standard developed by the GSCC has three important objectives:
- Provide a single, technology-agnostic framework for steel product certification and company science-based emissions target-setting that applies to all steel producers equally on a global basis.
- Allow all steel customers to know the carbon emissions associated with the steel products they are purchasing.
- Create an industry standard for achieving the emissions reduction goals in the Paris Climate Agreement by 2050.
“The standard was designed through a collaboration of steel companies and associations based in Europe, North America and other countries. It will guide steel manufacturers around the world toward decarbonization. It can also guide governments, steel customers and other stakeholders to encourage policies and practices that support this goal,” said David Valenti, Head of International Affairs, Riva Group.
“Steel is integral to the functioning of global economies, including clean energy infrastructure. The Steel Climate Standard is a simple and understandable benchmark for reducing the steel industry greenhouse gas emissions and provides a transparent means for decisionmakers to make informed decisions,” said Jeff Hansen, Vice President Environmental Sustainability, Steel Dynamics, and GSCC Board Member.
“The use of recycled products is key to decarbonizing steel production and manufacturing supply chains around the globe. The recycled materials industry provides high-quality, low-carbon steel to the global supply chain. The Steel Climate Standard is the right approach to leveling the playing field among steel producers, while also recognizing the key role that recycled steel plays to meet decarbonization goals in the decades ahead,” commented Robin Wiener, President, Institute of Scrap Recycling Industries (ISRI).
A draft version of The Steel Climate Standard was published in April 2023. GSCC invited stakeholders to review the Standard and submit comments. Many of the submitted comments have shaped the final text of The Steel Climate Standard published today.