Speaking during an event Thursday at Cleveland-Cliffs Inc.’s direct reduction plant in Toledo, Ohio, U.S Transportation Secretary Pete Buttigieg, U.S. General Services Administrator Robin Carnahan, and Deputy National Climate Advisor Ali Zaidi said the federal government is moving to create a market differentiation and incentives for lower-carbon materials. 

“Companies across the nation will be rewarded for cutting carbon pollution across their entire value chains while supporting good American manufacturing jobs,” officials said in a statement. 

Officials also said the Cleveland-Cliffs plant is representative of the future of U.S. clean manufacturing, as it makes a low-CO₂ feedstock that ultimately winds up in any number of products purchased directly by the government or with federal dollars — automobiles, electricity grid transformers, bridge decks, offshore wind platforms, naval submarines, and train tracks.

The American Iron and Steel Institute applauded the announcement. 

“Of the major steel-producing countries, the U.S. has the lowest CO₂ emissions per ton of steel produced. Our entire industry continues to make key investments to further decrease carbon emissions and advance our leadership position on sustainability,” said AISI president and chief executive Kevin Dempsey.  

“(This) announcement recognizes the innovations and advancements being made by American steel producers, and we look forward to working with the government agencies to ensure the use of clean American-made steel as this initiative is implemented.”