Calls are growing for the Industrial Accelerator Act (IAA) to create a mandatory definition for low-emission steel, Kallanish learns from climate and standards groups.
While SteelZero welcomes the EU’s push to “create real markets for low‑carbon steel,” it says the act falls short where it matters most, “setting a clear, mandatory EU definition of what counts as low‑carbon steel”.
“Requiring low‑carbon steel in public procurement is powerful, but only if all producers are held to the same science‑based standard,” comments Andrew Forth, head of policy and advocacy at Climate Group.
“The EU must now move quickly to introduce a trusted, mandatory green steel label to ensure investment flows to genuinely cleaner production,” he adds.
Steel industry stakeholders are increasingly using the term “low-carbon steel” to refer to steel with low embedded carbon emissions during production, rather than the traditional meaning of steel with a low carbon content, ranging from 0.05-0.25% by weight.
A statement by Global Steel Climate Council welcomes “the European Commission’s efforts to harmonise the definition of low-carbon steel”.
It says that establishing a clear and consistent framework will send a strong signal to the entire industry and its customers, helping to accelerate investment, innovation, and the large-scale deployment of low-emission production technologies.
“Clear, comparable information on the carbon footprint of steel products would enable customers to make more informed purchasing decisions.”
GSCC adds it looks forward to collaborating with the Commission on the forthcoming Delegated Acts under ESPR that will define low-emission steel criteria. It adds this is accomplished through a transparent, technology-neutral approach that focuses directly on climate impact and emissions reduction, applying consistent standards across all production routes.
These calls echo warnings by the European Environmental Bureau (EEB) that the IAA lacks the clear definitions and clarity needed to drive the energy transition.
Meanwhile, Annie Heaton, ceo of ResponsibleSteel, tells Kallanish the IAA enshrines a number of principles that should be welcomed: the use of public procurement as a lever to drive steel decarbonisation; product labelling to signal clarity in the market; acknowledging that recycling alone will not drive the industry to decarbonise; and recognising that definitions of low-emission steel should apply a scrap-variable approach.
“However, the application of every one of these principles in the IAA is weaker than anticipated, so the onus is now on the EU Institutions to drive the potential of what has been proposed here to the full, and at speed, so that it can drive certainty into the investments needed to transform the industry,” she adds.
