A new report by the Climate Leadership Council (CLC) notes that the US steel industry is more carbon efficient than its global counterparts.
The report stated that despite being 75-320pc more carbon-efficient than other steelmakers, US manufacturers did not get the benefit of carbon credits or a strong border carbon adjustment for maintaining clean operations.
China and India ranked higher than the global average for flat and longs products whereas Brazil, Japan, Mexico, the EU, Taiwan, South Korea, and Canada ranked within the average range for flats. Japan, Taiwan, and South Korea, however, emitted more than average carbon to produce longs, the CLC report indicated. The US, on the other hand, emitted below-average carbon to produce both these products.
CLC recommended in its report that establishing a carbon fee and border adjustment would not only lift steel sales by 7-9pc, but would also increase the industry’s value by $2.8bn within the first year of creating these norms. Moreover, CLC indicated that such a fee would reduce steel imports by about 50pc and encourage the use of domestic steel. The American Iron and Steel Institute (AISI) indicated that it supported the case for a strong border carbon adjustment as it would result in lower steel imports from countries with higher carbon intensities.