Responsiblesteel partners with Europe and China on global low-emission steel standards
At the COP30 summit held in Belém, Brazil, following calls for greater consistency and clarity in carbon standards, Responsiblesteel announced partnerships with Europe’s Low Emission Steel Standard (LESS) and China’s Low Carbon Emission Steel Standard (C2F Steel). These two standards cover approximately 60 percent of global steel production.
Responsiblesteel’s agreements with Chinese and European steel standards expand a common approach to greenhouse gas measurement and classification, covering more than half of global steel production. The partnerships bring together producers, consumers, and innovators under harmonized definitions of low-emission steel, accelerating the sector’s journey toward deep decarbonization.
Steel accounts for around 7–9 percent of global greenhouse gas (GHG) emissions, making it one of the largest industrial contributors to climate change. The agreements strengthen efforts to facilitate trade and investment in decarbonized steel while ensuring consistency and reliability in sustainability standards worldwide.
Achieving meaningful progress in decarbonization requires collaboration across borders and standards. Today’s agreements send a strong message of global consensus to governments regarding the “scrap-variable” approach to low-emission steel classification. This approach acknowledges that recyclable steel will be limited in the coming period and is designed to promote decarbonization across all technologies.
Already recognized by the G7 and incorporated into international standards, this approach provides a practical, science-based solution supporting the global transition to low-emission steel without compromising integrity. It prevents unproductive competition for limited scrap supply, encourages decarbonization across all steel production routes, and supports technology-neutral solutions compliant with international trade rules, removing unnecessary barriers to trade.
Responsiblesteel’s greenhouse gas accounting methodology and classification system are part of the ‘International Production Standard,’ developed through a transparent, multi-stakeholder process with participation from over 180 individuals, including more than 70 business and civil society organizations and steel producers operating blast furnace (BF) and electric arc furnace (EAF) facilities, covering a broad ESG spectrum.
Responsiblesteel CEO Annie Heaton stated: “Responsiblesteel is creating a global framework that enables comparability to establish the foundation for a global market in low-emission steel. A large portion of global steel production capacity now has the potential to use equivalency mechanisms to define low- and near-zero-emission steels. These agreements pave the way for the first real examples of interoperability between standards, providing clarity for steel producers, buyers, investors, and policymakers in a groundbreaking development.”
Jiang Wei, president of the China Iron and Steel Association (CISA), emphasized: “Collaboration is essential to harmonize greenhouse gas emission standards and accelerate the decarbonization of the steel industry. This agreement is a groundbreaking step toward that goal. CISA’s decision to collaborate with Responsiblesteel reflects our mutual commitment to steel standard principles, proven results achieved by both organizations in this area, and our shared dedication to reliable, science-based solutions. We look forward to working closely with Responsiblesteel to advance the objectives of this agreement.”
LESS secretary general Carmen Ostwald stated: “LESS is proud to partner with Responsiblesteel in this groundbreaking initiative. Our shared commitment to reliable, science-based solutions will provide much-needed clarity in greenhouse gas emissions comparison and transparency in the decarbonization process of steel production. This agreement represents a critical step toward creating global markets for low-emission steel and accelerating the sector’s transition to net zero.”
Responsiblesteel board chair Gerry Tidd emphasized: “Two dominant steel-producing regions, China and Europe, play a vital role in decarbonizing the steel industry. Responsiblesteel is proud to act as a global, multi-stakeholder facilitator, using its trusted standard to help industries achieve genuine decarbonization.”
The agreements also set an example for the Steel Standard Principles (SSPs) launched at COP28. Responsiblesteel has taken a leading role in developing interoperability between standards in collaboration with more than 60 SSP signatories.
Leading industry figures and organizations also support the agreements
Philippe Aubron, global head of automotive at ArcelorMittal, stated: “ArcelorMittal strongly supports the collaboration between Responsiblesteel, CISA, and LESS to enhance interoperability between the new standards. It is essential to create a unified framework for international reference standards to accelerate steel decarbonization and provide transparency and reliability in global markets. We believe this initiative will build trust, drive innovation, and ensure the industry meets its climate commitments consistently and rigorously.”
Wang Qiangmin, chief representative for carbon neutrality at China Baowu Steel Group, stated:
“The signing of this cooperation agreement is a key milestone for the Chinese steel industry in actively applying green development principles and integrating deeply into global low-carbon emission management. We will use this opportunity to jointly promote international recognition of low-carbon steel standards, establish a green supply chain system, and contribute to the low-carbon transformation of the global steel industry with Chinese expertise and strength.”
Frederik Van de Velde, CEO of ArcelorMittal Belgium, stated: “This partnership is groundbreaking for our sector. By aligning our standards, we not only strengthen LESS and Responsiblesteel but also establish a global consensus on the definition of low-emission steel. ArcelorMittal is proud to support this initiative, which will accelerate our joint journey toward a sustainable steel sector.”
Gunnar Groebler, CEO of Salzgitter AG and chair of the LESS board, emphasized: “Aligned standards form the backbone for meaningful change in steel production. This tool ensures companies can adopt sustainable practices with confidence while providing customers with the transparency needed to make informed decisions. Mutual recognition between standards is key to building trust in the market.”
Riccardo Savigliano, head of energy systems and decarbonization at UNIDO, stated: “These agreements represent an important step toward globally harmonized standards for low- and near-zero-emission steel, which are critical for advancing decarbonization across the sector.”
Susanne Larsson, CFO and CSO of SKF, stated: “Unified, reliable, and interoperable standards are vital for making informed sourcing decisions in complex and globalized value chains like ours. These agreements will provide the market with much-needed clarity and consistency, strengthening the foundation for genuine climate action in the steel sector.”
John Haffner, deputy sustainability director at Hang Lung Properties, stated: “Carbon emissions from steel are a fundamental challenge in the real estate sector. We welcome and applaud this announcement as the first real estate company in China to join the Climate Group’s SteelZero initiative. Promoting decarbonization across all steel production routes and establishing reliable, interoperable standards will accelerate low-carbon steel production and provide clarity and momentum to demand-driven initiatives in China and beyond.”
Esther Finidori, sustainability director at Schneider Electric, stated: “Harmonizing global standards for low-emission steel is essential to scale reliable supply and sustainable trade. Decarbonizing supply chains requires standards that are harmonized, high-integrity, transparent, traceable, and measurable. We are committed to building sector coalitions, establishing long-term partnerships, and ensuring the standardization necessary to accelerate sustainable innovation.”
Mike Peirce, executive director of system change at Climate Group, stated: “This announcement is a strong example of what collaboration can achieve. By shaping standards within a common framework, these organizations are enabling greater alignment on how we measure and classify emissions in steel, a sector critical for global decarbonization.”
Sameen Khan, senior director of steel at Climate Group, stated: “SteelZero was established to accelerate demand for net-zero steel, and this announcement represents a vital step toward that goal. Steel buyers seeking low-carbon materials need clarity and comparability at a time when multiple decarbonization standards are emerging. Reducing barriers to measurement and progress is critical to helping companies make informed choices about where to source low-emission steel. This collaboration promises to provide that clarity.”
Responsiblesteel continues to be the single, multi-stakeholder standard for sustainability in steel worldwide, with 90 certified organizations.
BIR warns against sliding scale steel green standards
The Bureau of International Recycling (BIR) has released a new position paper calling for “a fair and science-based approach” to green steel policymaking; namely, how green steel is to be methodologically defined as the steel industry embarks on its industrial transition.
In the paper, the industry association warns against defining green steel against a “sliding scale” approach, which gives diminished accreditation for carbon emissions reductions the greater the constituent share of secondary (scrap) steel in the steel’s production.
This methodology, preferred by leading decarbonisation standards bodies in the steel sector such as ResponsibleSteel and the Low Emissions Steel Standard (LESS), is premised on a “realistic and practical” approach to decarbonisation, attempting to recognise inherent limitations in scrap availability to meet steel and green steel demand out as far as 2050 – an institutional carbon-neutrality deadline worldwide.
BIR supports methodologies on an absolute emissions approach such as the Global Steel Climate Council’s Steel Climate Standard (GSCC SCC), which BIR states “applies to all steel producers equally, focusing on actual emissions intensity across time rather than production method.” While this is not wholly inaccurate, the SCC does distinguish between flat and long steel products, setting different emissions targets for each at comparatively high thresholds as demonstrated in appendix one.
Supporters of definitions incorporating a sliding scale argue that these limitations in scrap availability risk merely redistributing embedded emissions across steelmaker product lines, and negates potential for higher-carbon blast furnace (BF) route producers to enact real emissions reductions on economic non-viabilities.
The European Commission is currently formulating low-emissions steel labels under the upcoming Industrial Decarbonisation Accelerator Act, as per the European Steel and Metals Action Plan (ESMAP), to be presented at the end of the year. McCloskey’s industry sources indicate that LESS is a forerunner in these consultations between policymakers and European steel market participants.
Under ESMAP, EU authorities recognise that the steel industrial transition is not workable without demand for green steel products such to fund decarbonisation-focused renovations among steel producers; aiming to create lead markets for green steel through official green steel definitions and their incorporation into public procurements. With public procurement representing around 15% of steel demand on the continent, steel producers – regardless of production route – will be looking to secure their piece of this pie as European climate targets approach their deadlines.
BIR does acknowledge scrap’s finite supply, but equates it to other raw materials, stating “much like iron ore, [scrap] is not scarce,” denying that this warrants special treatment for BF producers over electric-arc furnace (EAF) producers – who largely dominate scrap consumption as their primary steelmaking input.
The association adopts the same studies as the standards they criticise for their arguments, citing the possibility to reach 45% recycled steel input in global manufacturing by 2050 to counter what they term the “shortage narrative” – but BIR does not give much attention to the decarbonisation of the other 55%, or the fact that 2050 represents the carbon-neutrality deadline, not the starting line for a scrap-based transition.
BIR’s arguments are understandable in the sense that EAF producers should not be isolated from any green steel markets created and stimulated by emerging regulatory definitions – but the European Commission’s strategy focuses on incentivizing the decarbonisation of its existing industries, to which BIR has not provided an alternative solution.
Indeed, the scrap-independent decarbonisation routes available to integrated blast furnace producers – most prevalently, looking to direct-reduced iron (DRI) processes as an alternative to carbon-intensive blast furnace iron reduction – are also available to EAF producers, allowing them to reduce the scrap share in their productions on an already-competitive production route, as well as support the development of the DRI markets and the wider industrial transition via additional demand.
BIR states that the sliding scale model “contradicts the fundamental principle that green standards should reward actual emissions reductions” – yet if Europe’s existing integrated production is going to achieve actual emissions reductions, its operators will certainly require supportive demand to do so before 2050, as afforded by the incorporation of a sliding scale approach into regulatory definitions.
Appendix One: Green Steel, Standards and Thresholds
| Green Steel Standards (scrap share) | Green Steel Thresholds 2025 (t CO2e/t) |
| LESS (100%) “Near zero” | 0.12 |
| LESS (100%) A | 0.24 |
| LESS (100% ) B | 0.36 |
| LESS (20%) “Near-zero” | 0.40 |
| LESS (0%) “Near-zero” | 0.47 |
| LESS (100%) C | 0.48 |
Benjamin Steven Journalist, Steel
Tubemaker Wiederholt sources CO2-reduced steel from ArcelorMittal
Wiederholt, a German producer of precision steel tube, and ArcelorMittal have signed a memorandum of understanding to use CO2-reduced steel in production, Kallanish learns from the steelmaker. Both companies have been working together for several decades.
As part of the partnership, Wiederholt intends to source hot-rolled steel from ArcelorMittal with CO2 savings of up to 65% compared to traditional production methods.
The CO2 reduction will be achieved through “XCarb Green Steel certificates” and steel with the “XCarb recycled and renewably produced” label. According to ArcelorMittal, at least 75% recycled scrap is used in the production of this steel. The CO2 savings that Wiederholt can pass on to its customers are verified by environmental product declarations (EPDs), the steelmaker says.
Wiederholt’s precision steel tube is mainly used in the automotive industry, including shock absorbers, camshafts, steering parts, cardan shafts and stabilisers. It has committed to becoming carbon neutral in Scope 1 and 2 emissions by 2030, in accordance with the Greenhouse Gas Protocol.
Separately, ArcelorMittal Germany has announced that its Duisburg long products mill has been certified by organisation ResponsibleSteel, following a two-year audit by inspection company GUTcert.
Christian Koehl Germany
