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Steel emissions

On September 25, the US Department of Energy (DOE) launched a pilot project to measure the greenhouse gas intensity of several industrial products, including steel. This move is a part of the Biden administration’s agenda to reduce emissions while boosting sustainable domestic manufacturing. By tracking emissions more effectively, the U.S. steel sector could gain a competitive edge over foreign competitors.

Notably, one key technology helping drive this change is the electric arc furnace, which operates without coal, unlike traditional blast furnaces. This shift aims to lower emissions in the U.S. steel industry which is a major contributor to global greenhouse gas emissions.

Kevin Dempsey, President and CEO of the American Iron and Steel Institute Remarked,

“The pilot program is a step toward assessing the environmental footprint of industrial products and promoting the output of domestic producers.”

He further explained the US steel industry scenario to S&P Global Commodity Insights this way,

“We need a trade policy that ensures that all of the efforts being made domestically to invest in all this much cleaner production, which is expensive, is not undercut by imports of much dirtier but much cheaper steel from abroad. For that, we really need to have measurements on the average emissions intensity of the full range of steel products made in the US as a baseline to compare to the emissions intensity of steel products coming from overseas.”

Dempsey further highlighted that measuring average emissions could pave the way for a “border fee” that reflects the emissions intensity gap between domestic products and imports. This would prevent cheaper, high-emission imports from undercutting cleaner US-made steel.

Accurate Emissions Data Crucial for Investors

Fabio Passaro, a senior transition policy analyst at the Climate Bonds Initiative, noted that this initiative creates a strong opportunity for steel producers to lead in the race for greener steel. As regulators, investors, and consumers demand lower-emission products, early adopters of decarbonization could reap significant benefits.

Passaro, who recently authored a report on decarbonizing steel and cement for the G20’s Sustainable Finance Working Group, called the DOE’s pilot project a “great first step.” He emphasized that “you can’t decarbonize what you can’t measure.”

While the details are still being finalized, Passaro pointed out that accurate emissions data is increasingly essential for investors looking to avoid the risks associated with high-emission industries.

Currently, emissions data for the steel sector varies widely in availability and accuracy. Investors are wary of industries like steel due to potential risks, including stranded assets, as governments increasingly enforce stricter emissions regulations. Accurate data, transparency, and public availability are critical for addressing these concerns and encouraging investment in greener steel production.

Decarbonizing the steel industry is complex and costly but necessary. Passaro believes that with this pilot project, the US is prioritizing the decarbonization of the steel industry.

U.S. Steel Emissions Report

us steel

Source: United States Steel Corporation 2023 Sustainability Report

U.S. Steel’s Major Moves to Cut Emissions

Tracking emissions is one side of the story. Subsequently, it is equally important to combat steel emissions. In this regard, U.S. Steel is making significant progress in reducing emissions through recycling, energy efficiency, and advanced technologies.

Process Optimization and Renewable Energy

U.S. Steel is actively increasing efficiency in its operations through process optimization models, which enhance performance at existing steel mills. The company is also expanding its use of renewable energy sources, such as the Driver Solar project at Big River Steel Works. These initiatives demonstrate a growing commitment to reducing reliance on fossil fuels and embracing cleaner power options.

Innovating with Direct-Reduced Iron and Mini Mills

Direct-reduced iron (DRI) with natural gas is helping U.S. Steel cut back on carbon-intensive coal and coke. Plans to incorporate hydrogen into the DRI process will further reduce greenhouse gas emissions. Mini mills, such as those at Big River Steel Works, already rely on electric arc furnaces, which generate 70–80% fewer emissions than traditional blast furnaces. The company will expand its mini mill capabilities with the BR2 facility in late 2024.

Exploring Carbon Capture and Electrification

Emerging technologies like carbon capture are expected to play a key role in reducing U.S. Steel’s carbon footprint. Electrification and the use of batteries and hydrogen in place of carbon-based fuels are additional strategies to lower emissions.

With advancements in the electrical grid and a shift toward green energy, U.S. Steel anticipates reductions in both Scope 1 and Scope 2 emissions. Significantly, carbon offsets and credits will further bridge any remaining gaps in the company’s decarbonization efforts.

The U.S. aims to achieve 100% carbon-free electricity by 2035, a move that will significantly aid the decarbonization of heavy industries like steel and aluminum. It’s worth quoting that President Biden’s Inflation Reduction Act allocates $369 billion to combat climate change and provides a strong foundation for cleaner industrial operations.

Leveraging Carbon Policies

According to Global Efficiency Intelligence, the U.S. steel industry can fully capitalize on its lower carbon intensity through policy measures like Border Carbon Adjustments and Carbon Tariffs. These policies would promote cleaner domestic production and support global decarbonization goals.

Additionally, initiatives like “Buy Clean” would boost the use of low-carbon steel in public projects, strengthening the industry’s competitiveness and reinforcing U.S. leadership in reducing emissions. Overall, it’s evident that U.S. Steel is taking serious steps to track and mitigate steel emissions to achieve the nation’s net-zero target.

The post How Tracking Emissions Can Give the U.S. Steel Sector an Edge Over Imports appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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