A book and claim (B&C) system for iron and steel could support a faster transition to net zero steelmaking, the Rocky Mountain Institute (RMI) says in a new report seen by Kallanish.
While multiple pathways already exist for decarbonising the sector, their deployment has been “frustratingly slow” due to high up-front costs and long lifetimes of existing assets, the clean energy think tank adds. On the buyers’ side, companies willing to pay a premium for low-emissions steel often find themselves unable to directly procure it.
A B&C model, RMI says, can help address this gap by enabling more market participants to support low-emissions steel supply beyond traditional procurement pathways. Essentially, the mechanism separates a product’s verified environmental attributes from the physical product. Producers can sell environmental attribute certificates (EACs) linked to verified low-emissions steel production, creating an additional revenue stream when physical delivery is not possible. For buyers, purchasing EACs offers a credible, transparent way to support green steel production and claim the associated emission benefits.
Some steelmakers such as Stegra already apply book and claim to the non-prime steel it produces. Last week, Google agreed to purchase EACs for a volume of up to 91,000 tonnes of steel from Stegra’s future steel production in Boden, Sweden. A year ago, the prospective steelmaker signed the first purchasing agreement for EACs with Microsoft.
“There is a clear demand for near-zero-emission steel and a willingness to pay a premium, especially in geographies where there is a cost for carbon,” Stegra was quoted as saying by RMI. “Unlocking the potential for customers more broadly to purchase the green value, through use of environmental attribute certificates, will spur further production for sustainably sourced steel.”
RMI proposes a dedicated B&C framework for iron and steel, featuring verified certification for low-emissions steel, a secure registry to issue, transfer, and retire certificates, and clear guidance for buyers to claim the associated emission benefits. These safeguards, it adds, are essential to prevent double counting, ensure climate integrity and build trust among market participants.
The think tank has developed its own framework for the sector, although it is not yet a formal certification standard or operational registry. Further testing and collaboration across the steel value chain will be required to strengthen certification, verification, tracking and governance the report concludes.
