Steel recyclers push back against production method-based emissions standards

The Bureau of International Recycling has called for changes to "green steel" certification standards, saying that current methodologies unfairly penalize steel producers using recycled materials while allowing high-emission primary steelmakers to qualify for environmental credentials.

In a position paper published July 11, BIR said that existing "sliding scale" standards create an uneven playing field that contradicts efforts to decarbonize the steel sector, which accounts for approximately 8% of global energy sector emissions and 30% of industrial emissions.

The group said that under current certification frameworks, a blast furnace-basic oxygen furnace facility with high emissions can be labeled as producing "green steel," while an electric arc furnace with identical or lower emissions fails to qualify simply because it uses higher recycled steel content. The organization contends this approach undermines the fundamental principle that environmental standards should reward actual emissions reductions.

"The sliding scale approach is premised on the argument that recycled steel is scarce and merely 'shifting' it between producers does not reduce overall emissions," BIR stated in the paper. The organization said that this presumed scarcity is contradicted by market realities and global recycling rates.

Circular solutions

BIR emphasized that recycled steel maximization across production methods offers "the most immediate, commercially viable and sustainable solution" for producing low-carbon steel. EAFs using recycled steel can achieve emissions reductions of up to 74% compared with primary, ore-based steel production, providing an immediate pathway while emerging technologies develop long-term solutions, it said.

The organization subsequently called for "total emissions-based standards with clear, time-bound commitments that apply equally to all production methods." It also advocated for public procurement policies that "create demand for genuinely low-carbon steel, including minimum recycled content requirements in key sectors such as construction and automotive."

Export restrictions

Global trade policies represent another critical area, with BIR warning that restricting recycled steel exports would undermine decarbonization efforts and deepen north-south divides by limiting access to materials needed for low-carbon production.

The organization argued that such restrictions would not increase domestic recycled steel use but would disrupt well-functioning supply chains and lead to more landfilling in exporting regions.

Platts, part of S&P Global Energy, assessed European carbon-accounted steel premiums for both rebar and medium sections at Eur30/mt July 9, unchanged week over week.