GSCC Releases Draft of Global Emissions Standard

The Global Steel Climate Council (GSCC) has released a draft of the Steel Climate Standard, a global standard to measure and report steel carbon emissions. The GSCC has been participating in efforts to reduce steel carbon emissions and encourage investments in lower emission technologies within the steel industry.                  “Steel companies and associations from around the world have come together to develop a standard that will enable our industry to reduce carbon emissions and encourage investments in lower emission technology as part of the global effort to decarbonize,” said Greg Murphy, EVP of Nucor and chair of the GSCC. The proposed standard is comprised of criteria for product certification and a target-setting framework for organizations. Product certification would enable steel customers to know actual carbon emissions emitted by the products they purchase. Under these provisions, steelmakers would be required to report verification of their emissions and reduction goals.  Both components are aligned with a glidepath for a 1.5 degree Celsius scenario to achieve net zero emissions by 2050. “We are proud to be a founding member of the Global Steel Climate Council. Steel is an integral component of the global economy and foundational to the world’s essential infrastructure. Specifically, lower-carbon steel is necessary for the transition to a lower-carbon global economy. This new standard will accelerate the actual reduction of greenhouse gas emissions and provide key decisionmakers with transparent and consistent data to make informed decisions,” commented Mark D. Millett, chairman and CEO of Steel Dynamics Inc (SDI). While many groups and organizations are advocating for a global standard, not everyone agrees on the same approach. Some would like to see two separate standards put into place: one for steel made from traditional process, the other for steel made from circular processes. “Creating a dual standard would allow high-carbon emissions steel to be prioritized over lower-carbon steel. This is a form of greenwashing and serves to discourage innovation and allows high-carbon steelmakers to postpone making changes in their production process,” said Phil Bell, president of the Steel Manufacturers Association. “Nucor is one of the cleanest steel producers in the world and the North American leader in reducing greenhouse gas emissions in the steel industry,” said Leon Topalian, president and CEO of Nucor. “Using a single standard that is ambitious, auditable, inclusive and transparent is needed to accelerate further greenhouse gas emission reductions in our industry and to drive investment in lower emission technology.” The GSCC is also inviting interested organizations to submit comments upon reviewing the Steel Climate Standard. The full text of the document and guidelines on submitting comments can be found at: globalsteelclimatecouncil.org. The GSCC, which was launched in November, includes founding members Nucor, Steel Dynamics Inc. (SDI), Commercial Metals Co. (CMC), Spain’s Celsa Group, the SMA, and the Institute of Scrap Recycling Industries (ISRI), as well as more than 20 additional members from the US and EU. By Becca Moczygemba, becca@steelmarketupdate.com