BIR has criticized the «sliding scale» methodology for assessing decarbonization in the steel industry

The Bureau of International Recycling (BIR) has spoken out against the “sliding scale” methodology and claims that it encourages the use of scrap in the steel industry.

The organization strongly supports climate standards for steel that accurately measure carbon emissions.

“We collectively warn that recent public communications claiming the “sliding scale” methodology incentivises the use of recycled steel are misleading and set a dual standard that greenwashes high-emission production processes,” the BIR emphasized.

The approach is neither scientifically sound nor environmentally robust, the Bureau of International Recycling states, as it weakens the clear link between actual emissions and claims of environmental sustainability. This jeopardizes the core principles of circularity and resource efficiency. If adopted in regulations or markets, this could mislead policymakers, investors, and end consumers, undermining confidence in green steel classifications.

Currently, the “variable scale” methodology is based on a double-standard approach that accounts for scrap content. Companies that use less scrap as raw material are likely to emit more CO₂ than those using a significantly higher proportion of recycled materials. Yet the former’s products can still be labeled green steel.

This creates a perverse incentive system, the BIR notes. Instead of improving environmental performance, it effectively encourages the production of steel with higher carbon emissions and penalizes those who use more recycled materials.

Therefore, any suggestion that the “sliding scale” methodology directly or indirectly encourages steel recycling is inaccurate and misleading. On the contrary, allowing higher emission thresholds to be offset through adjustment factors weakens the environmental benefits of using recycled materials rather than reinforcing them, the statement notes.

Classifications of green steel should reflect actual, verified carbon intensity and not rely on distorting adjustments, according to the BIR. They must account for the unique characteristics of primary and secondary steel production pathways to create a fair, predictable, and investment-attractive system.

A one-size-fits-all methodology that blurs these distinctions jeopardizes decarbonization goals and the development of a truly circular steel economy.

The Bureau of International Recycling has called on policymakers and industry stakeholders to recognize that a single, unified, process-agnostic standard will level the playing field for global decarbonization efforts in the steel industry.

As a reminder, last November, EU steel producers and scrap metal suppliers expressed concern about the direction of discussions regarding the labeling of green steel and the consideration of a “sliding scale” without distinguishing between production technologies. Their joint appeal was addressed to the European Commission.