The Low Emission Steel Standard (LESS) has joined a consortium of European steel players to support a public statement backing the use of the sliding scale approach for the EU label for steel, Kallanish learns.
The 25 backers of the statement include large European steel producers, such as ArcelorMittal, Tata Steel, Thyssenkrupp, Dillinger and Voestalpine. This is in addition to Volvo, Climate Group, Steelwatch and Stegra.
The European Commission is expected to unveil an EU label for steel as part of the Industrial Accelerator Act, and as part of this, the group has called on the sliding scale to be adopted in order to drive real decarbonisation. The backers say this will “adopt a clear, credible, and technology-neutral framework”.
It says the approach is fair and effective, rewarding genuine emissions reductions across all production routes. It adds the sliding scale acknowledges the decarbonisation efforts of primary steel producers and offers a clear roadmap for steady improvement. It also recognises the limited availability of high-quality scrap and the need for both primary and secondary steel decarbonisation in Europe.
The approach, initially proposed by the International Energy Agency (IEA), has been adopted by ResponsibleSteel, LESS, and CISA for its frameworks.
The approach also prevents carbon leakage and ensures upstream Scope 3 emissions are accounted for, avoiding outsourcing of emissions. It is also market-ready and proven by LESS certifications, which classify steel products based on their specific emissions and scrap share.
The statement warns a footprint-only approach risks shifting emissions and jobs abroad. However, this stance is in contrast to a briefing by EU think-tank Sandbag, which says the sliding scale approach risks distorting incentives, overlooks product diversity, and undermines circularity. The organisation instead proposes an alternative method.
Carrie Bone UK
