At last month’s COP26 UN Climate Change Conference, the United Kingdom, India, Germany and Canada pledged to purchase low-carbon-emission steel
for major projects, under the Industrial Deep Decarbonization Initiative (IDDI).
While market sources agreed that IDDI could boost construction demand for low-carbon steel in Europe in the long run, the initiative was too “raw” to make more specific assumptions, with a lack of industry-wide standards about what counts as “decarbonized” also a major issue.
“First of all, we need to clarify what exactly ‘green steel’ is? Is it all steel produced in electric-arc furnaces (EAFs), or does it need to be certified as green steel? We need to clear that up,” a steelmaker in southern Europe told Fastmarkets.
Steel produced via EAFs is considered to be circular by nature because it is recovered from recycled inputs, namely steel scrap.
“IDDI is supposed to facilitate demand for low-carbon products in...