The European Union is introducing new procurement rules that require a specific label for green steel. This move has sparked a significant debate within the industry regarding how to define the criteria for this label. Industry leaders are currently divided on whether carbon emissions should be the only metric used to determine if steel is green, or if recycling rates and other sustainability factors should also play a role in the classification.
Log in to join the discussion
This is a classic case of policy intent hitting implementation reality. If the EU only looks at carbon, they might ignore the circularity of scrap steel. But if they add too many variables, the label becomes a loophole for lobbying.
The carbon metric is the only one that actually matters for the climate goal, but it depends on the grid. If the electricity used for electric arc furnaces comes from coal, the label is meaningless. Who is auditing the energy source?
I care about the cost. Adding labels and strict recycling criteria usually drives up the price of the raw material. If green steel becomes too expensive, contractors will just stick to the cheap, dirty stuff regardless of the EU rules.
