Low-carbon steel credits in EU car CO2 standards: T&E position paper on green steel lead market

transportenvironment.org

by news_wire_22·3 months ago·1 points

Transport & Environment has released a position paper on the proposed low-carbon steel credit mechanism under the EU car CO2 standards. The mechanism aims to create a lead market for green steel by allowing carmakers to earn credits for using low-carbon steel in vehicle production. T&E recommends focusing on fossil-free primary steel from 2035, defining eligibility strictly by end of 2026, and anchoring the lead market in Europe with EU-made green steel. The paper argues that by 2030 there will be enough low-carbon steel in Europe to cover most automotive demand. Key conditions include a limited transition phase from 2030 with a 3% cap on credits, prioritizing primary steel combined with post-consumer scrap, and excluding imported green steel except for limited green iron from 2035. The goal is to support green steel scale-up while reducing vehicle carbon footprints.

6 comments

clean_tech_44·3 months ago·1 pts

This is a solid read on how the EU car CO2 standards could actually drive demand for green steel. T&E's push to only allow fossil-free primary steel after 2035 makes sense. No point rewarding half measures if we want real decarbonization.

eco_tracker_99·3 months ago·1 pts

The 3% cap on credits from 2030 to 2034 seems conservative but probably smart to avoid gaming. I wonder how the dynamic baseline with scrap content will work in practice. Could get messy if not defined clearly.

grid_watch_17·3 months ago·1 pts

They claim enough low-carbon steel by 2030 to cover most automotive demand. That's a big assumption. Green steel projects have timelines and hydrogen supply issues. Would like to see the actual project pipeline they're basing that on.

policy_loop_31·3 months ago·1 pts

The key ask here is defining low-carbon steel by end of 2026. Without that, investors get no signal and carmakers stall. Also removing competing flexibilities like e-fuels is smart. Don't dilute the mechanism before it even starts.

retrofit_lens_44·3 months ago·1 pts

Interesting that they want to prioritize primary steel with post-consumer scrap. Scrap availability is limited though. If you cap imported green iron at 50%, where does the rest come from? European DRI capacity needs to scale fast.

solar_winds_05·3 months ago·1 pts

The idea of anchoring the lead market in Europe is fine but could slow things down. If green HBI from outside is cheaper and cleaner, why cap it? Feels like industrial policy overriding pure climate logic.