Global Decarbonization Effort Critical for Steel Industry, Says ResponsibleSteel CEO

In a recent essay co-authored by Annie Heaton, CEO of ResponsibleSteel, and Helen Clarkson, CEO of the Climate Group, the duo calls for an international standard to guide the global steel industry towards net zero carbon emissions. The essay highlights the importance of sustainable practices in the steel sector, which, according to the World Trade Organization (WTO), accounts for nearly 25% of global steel trade annually.

Steel Industry Faces Crucial Sustainability and Trade Challenges
Heaton and Clarkson emphasize that the integration of sustainable practices in steel production is not only an environmental necessity but also a critical trade issue. The rise of sustainability reporting requirements and carbon border adjustments, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), makes it clear that voluntary actions alone will not be enough. They urge the steel sector to adopt private sector-backed certification standards while acknowledging the increasing regulatory pressures.

Certification and Measurement of Steel Emissions: A Growing Priority
The issue of emissions measurement and certification in the steel industry was recently discussed at the Bureau of International Recycling (BIR) meeting in Singapore. At the event, both Responsible Steel and the Global Steel Climate Council (GSCC) issued their first certifications for steel facilities in the U.S. These certifications aim to improve transparency and accountability in the steel sector’s efforts to meet sustainability goals.

Recycled Steel: Leading the Way in Low-Carbon Steel Production
The World Steel Association (Worldsteel) released its Sustainability Indicators 2024 report, which showed that recycled-content steel produced in electric arc furnaces (EAF) continues to have the smallest carbon footprint compared to other steelmaking methods. According to Worldsteel data for 2023, scrap-fed EAF furnaces produced an average of 0.7 tons of CO2 emissions per ton of steel, significantly lower than the emissions from direct-reduced iron (DRI) or blast furnace processes.

Path to a Sustainable Steel Industry: A Mammoth Task
Heaton and Clarkson acknowledge that transforming the steel industry into a fully sustainable operation will require significant investment and a stepwise approach. The transformation of one of the world’s most polluting industries is essential for meeting global climate goals, including the Paris Agreement target. However, they stress that this transition is not only necessary but urgent for a responsible future.