ResponsibleSteel and the non-profit organization Low Emission Steel Standard (LESS aisbl) have jointly published a new policy briefing titled “The Steel Decarbonisation Scale.” In it, they call on the European Commission and EU policymakers to adopt a more robust and realistic approach to steel decarbonisation. The framework aims to account for physical scrap availability constraints and to create incentives for genuine emissions reductions across all production routes.
The steel industry is the EU’s second-largest industrial source of CO₂ emissions, accounting for around 6% of the total. As Europe pushes to cut greenhouse gas emissions by 55% by 2030 and reach net zero by 2050, how progress in decarbonisation is measured and incentivized becomes critically important.
Scrap Availability as a Key Constraint
One of the briefing’s main insights is that many current policy tools—such as the European Steel and Metals Action Plan (ESMAP) or voluntary CO₂ labeling schemes—fail to fully consider the limited availability of scrap. Globally, around 85% of steel is already recycled, but according to the International Energy Agency (IEA), scrap can currently meet only about 32% of total steel demand. Even by 2050, that figure is expected to rise to just 46%, due to the long life cycles of steel products.
Dr. Martin Theuringer, Secretary General of LESS aisbl, warns: “Steel decarbonisation needs a sound basis for comparing steel products in terms of their global climate impact. Scrap is a valuable and limited resource. Any label or standard that ignores this risks distorting the market and slowing down the transition to truly low-emission steel. Our approach ensures that both primary and secondary production routes are decarbonised—rather than just competing for a fixed pool of scrap.”
Introducing the Steel Decarbonisation Scale
The proposed scale supplements conventional carbon footprint methods by factoring in the share of scrap versus primary raw materials. It is based on internationally recognized principles already supported by the G7 and leading standards organizations. The goals of the approach include:
• Preventing inefficient competition for limited scrap supply
• Promoting decarbonisation across all steelmaking routes
• Providing technology-neutral and WTO-compliant guidance
• Maintaining EU industrial competitiveness while meeting climate goals
Annie Heaton, CEO of ResponsibleSteel, emphasizes: “A European steel label is a major opportunity to make producers globally competitive based on their actual decarbonisation progress. A well-designed classification system includes both carbon intensity and scrap content—acknowledging that scrap will only be able to meet, at most, half of global steel demand by 2050. The Steel Decarbonisation Scale ensures investment flows into measures that truly reduce emissions in steel production itself, across both primary and secondary processes.”
Appeal to the European Commission
ResponsibleSteel and LESS are urging the European Commission to integrate the Steel Decarbonisation Scale into upcoming voluntary labeling schemes, lead market initiatives, and investment incentive programs. Only then, they argue, will future decarbonisation measures be effective, equitable, and strategically aligned with long-term climate goals.
