The World Trade Organization (WTO) has published a new information note stating that proliferation of decarbonization standards creates challenges for climate and trade. According to the note, in the steel sector, there at least 20 different decarbonization standards and initiatives, which creates uncertainty for producers, increases transaction costs and risks trade frictions.
The WTO stated that there are multiple pathways and technologies to decarbonize steelmaking such as hydrogen-based steelmaking, electrolysis, and carbon capture, storage and usage. However, many options are still relatively costly and require government action to provide the necessary framework for global dissemination.
According to the note, converging on common methodologies for carbon content measurement will be vital for putting in practice definitions and performance thresholds, while ensuring transparency, consistency and comparability.
