The Bureau of International Recycling (BIR) has warned that current approaches to defining green steel may undermine global decarbonization efforts in the steel industry.
Steel production accounts for around eight percent of global emissions and approximately 30 percent of industrial emissions, making accurate classification of low-carbon steel critical.
Criticism of sliding scale methodology
BIR highlighted concerns over the use of “sliding scale” methodologies, which adjust emission thresholds rather than strictly measuring actual carbon intensity.
According to the organization, this approach risks creating a dual-standard system that misrepresents the environmental performance of steel production.
Risk of distorted incentives
The organization stated that such methodologies could allow producers with relatively higher emissions, often linked to lower scrap usage, to still classify their products as green steel. This creates distorted incentives by favoring more carbon-intensive production routes while penalizing producers that rely more heavily on recycled materials.
BIR emphasized that these practices could weaken key principles of circularity and resource efficiency. By diluting the environmental benefits of recycled steel, the current approach risks undermining the role of scrap-based production in reducing emissions.
Need for transparent and comparable standards
The organization stressed that a credible green steel framework must be based on transparent and verifiable carbon intensity data. It also called for clear differentiation between primary and secondary steelmaking routes, warning that a one-size-fits-all approach could hinder both decarbonization and circular economy development.
BIR urged policymakers and industry stakeholders to adopt scientifically robust and transparent standards. According to the organization, ensuring comparability and maintaining trust in green steel classifications will be essential to support long-term decarbonization goals in the global steel sector.
