There are currently more than 20 different standards and initiatives
The World Trade Organization (WTO) will discuss global steel decarbonization standards in March 2023. It is reported on the organization’s website.
On December 21, the WTO Secretariat published a new information note on the decarbonization of the steel industry. According to the report, there are currently more than 20 different standards and initiatives to support steel decarbonization efforts, either in place or under development. This can create uncertainty for producers, increase transaction costs and create the risk of trade conflicts.
The WTO believes that further harmonization of standards is necessary, including through the search for convergence of measurement methodologies, definitions and performance thresholds for decarbonization. In addition, the organization noted, it is important to ensure that the problems of developing countries are taken into account and solved.
At the UN Climate Change Conference (COP27) held in November 2022 in Egypt, the WTO called for increased international cooperation on trade-related climate policies, including decarbonisation standards. In particular, it was argued that the proliferation of different carbon standards and certifications across countries and sectors creates a risk of fragmentation, undermines environmental trust and creates barriers to trade and investment.
The event, scheduled for early March 2023, will discuss the coherence and transparency of decarbonization processes in the steel sector. The industry accounts for approximately 8% of global CO2 emissions each year. As the organization’s World Trade Report 2022 states, for example, governments are stepping up climate action at the national level, but there is a risk of unilateral action.
As GMK Center reported earlier, the American analytical center Atlantic Council believes that India, as one of the world’s largest steel producers, must be involved to global efforts to decarbonize the steel industry, and this is critical. It is predicted that the Indian steel industry will almost double by 2030, and almost quadruple by 2050 compared to the level of production in 2019.
Also, in November of this year, an international group of steel producers called on the United States and the European Union to adopt a global emission standard to achieve decarbonization of the steel industry by 2050 and meet consumer demand for green products.