PR98864

WASHINGTON, Nov. 17, 2022 /PRNewswire=KYODO JBN/ --

An international group of leading steel manufacturers today announced the

formation of a coalition to urge the United States and European Union to adopt

a global emission standard that incentivizes steelmakers to use the cleanest

steel production process available.  

The new coalition – the Global Steel Climate Council (GSCC) – supports a global

standard that accelerates the transition to low-emission steel and recognizes

the potential of the recycled, circular steel model to reduce carbon emissions.

The United States and European Union are negotiating a new emissions standard

for steel production. The GSCC asserts that any agreement should focus on the

amount of emissions generated, not on how steel is made. The majority of the

world's steel production is extremely carbon-intensive because it primarily

relies on mined and processed coal, iron ore and limestone. However, other

steelmakers – including those producing over 70% of all U.S. and over 40% of

all European manufactured steel today – use electric arc furnaces (EAFs) that

principally input recycled scrap metal to produce steel, generating

significantly lower carbon emissions.

"We have the technology to reduce carbon emissions in steel production by 70

percent today," said Leon Topalian, Chair, President & CEO of Nucor

Corporation, a founding member of the Council. "The global industry needs to

build on the innovation that has already led to cleaner steel production in the

United States because the green and digital economies around the world are

going to be built with steel, and the steel they are built with matters."

A "sliding scale" standard supported by high-emission steelmakers would set

greenhouse gas emission standards ceilings up to nine times higher for

extractive versus recycled products, penalizing EAF producers and permitting

higher-emission steel to be erroneously labeled as "green." Under a sliding

scale, two steel products could be classified as equally "green," even though

one was produced by creating multiple times more carbon emissions than the

other.

"Steel is essential for our economies, including the world's essential

infrastructure. This new standard will accelerate the actual reduction of

greenhouse gas emissions and provide key decisionmakers with accurate data to

make informed decisions," said Mark D. Millett, Chairman, President, and CEO of

Steel Dynamics, Chairman of the Steel Manufacturers Association, and a founding

member of the Council.

"We must prevent steel producers from classifying their products as green when

the same products are available on the market with significantly lower carbon

emissions," said Francisco Cardona, Head of Public Affairs of CELSA Group, a

leading European producer of low-emission circular steel and founding member of

the Council.

The primary focus of the GSCC is to establish a standard, focusing on the

following guiding principles:

   - Reducing GHG emissions from the global steel industry.

   - Establishing a standard that is technology/production method agnostic.

   - Establishing a standard that has a system boundary that includes Scope 1,

2 and 3 emissions.

   - Establishing a standard that aligns with a science-based glide path to

     achieve a 1.5 degree scenario by the year 2050.

   - Providing relevant information on sustainable steelmaking to appropriate

     decisionmakers.

"The GSCC single standard will encourage all producers to reduce their carbon

emissions and create a level playing field for all manufacturers. The U.S.-EU

negotiations should not create a double standard and a slippery slope toward a

dirtier environment. We can do better," said Philip K. Bell, President of the

Steel Manufacturers Association and founding member of the Council.

About the Global Steel Climate Council

The Global Steel Climate Council, Inc. (GSCC) is a nonprofit association

organized to advance climate strategy by sharing best practices, establishing

standards and advocating for carbon emissions reductions by members of the

steel industry.

The GSCC includes more than 20 members and supporters who are steel

manufacturers, trade associations, end users, scrap metal suppliers and

non-governmental organizations.

GSCC's specific purposes are to focus on reducing greenhouse gas emissions from

the global steel industry by supporting reduction methods that are technology

agnostic, have a system boundary that includes Scope 1, 2 and 3 emissions and

align with a science-based glidepath to achieve a 1.5 degree Celsius scenario

by 2050.          

The founding members of the GSCC are: the Steel Manufacturers Association,

Nucor Corporation, CELSA Group, Steel Dynamics, Inc., Commercial Metals Company

and the Institute of Scrap Recycling Industries.

For more information, please visit https://GlobalSteelClimateCouncil.org

CONTACT: media@globalsteelclimatecouncil.org

SOURCE: Global Steel Climate Council