“Steel companies and associations from around the world have come together to develop a standard that will enable our industry to reduce carbon emissions and encourage investments in lower emission technology as part of the global effort to decarbonize,” said Greg Murphy, chairman of the Global Steel Climate Council and a Nucor executive vice president. 

The council said its standard is in line with the Paris climate treaty, which proposes to limit global warming to no more than 1.5°C. It also is technology-agnostic, applying to all producers equally, regardless of production process. 

The council gas argued that other proposed standards differentiate between classic ore-based production and more circular scrap-based production. 

“Creating a dual standard would allow high-carbon emissions steel to be prioritized over lower-carbon steel. This is a form of greenwashing and serves to discourage innovation and allows high-carbon steelmakers to postpone making changes in their production process,” said Phil Bell, president of the Steel Manufacturers Association.

The council said the standard consists of two main components: a product certification criteria and a corporate-wide, science-based target-setting framework based on a 1.5-degree glidepath. The standard measures Scope 1, 2, and 3 emissions, and producers would have to report independent verification. 

Steel Dynamics, a founding member of the council, said it supports the standard will advance industry decarbonization. 

"This new standard will accelerate the actual reduction of greenhouse gas emissions and provide key decision-makers with transparent and consistent data to make informed decisions. Steel Dynamics is already a leader in producing lower-carbon steel products. We continue to identify decarbonization opportunities, building on our entrepreneurial, innovative spirit," SDI chief executive Mark D. Millett said in a statement.