European recycling and environmental protection groups are calling for stricter labeling standards for green steel

The coalition of signatories, consisting of Recycling Europe, the European Environmental Bureau and the European Waste Management Association, called for the creation of more ambitious labeling of "green steel" in accordance with the EU Regulation on the Ecodesign of Environmentally Sustainable Products (ESPR), while supporting the methodology developed by the Joint Research Center (JRC).

The signatories stated that JRC's technologically neutral integrated approach and fixed emission thresholds would encourage investment in low-carbon technologies. steel production technologies and recognize the advantages of decarbonization of recycled steel scrap.

According to the statement, this methodology will support production lines such as the production of direct iron reduction steel in a hydrogen-based electric arc furnace (DRI-EAF) and will help reduce dependence on imported iron ore by encouraging the use of recycled steel scrap, which is widely available in Europe. The coalition argued that adopting a different methodology at this stage could delay the introduction of "green steel" labeling and create additional uncertainty for investors.

Concerns have been expressed about performance class thresholds

Despite the support for the methodology, the groups expressed concern that the proposed product-specific performance classes were not ambitious enough. According to the statement, the current thresholds will not sufficiently stimulate investments in low-carbon and non-fossil fuel steel production technologies and will not allow for a clear distinction between products with the best carbon footprint. The route of the oxygen furnace is about 1.9 million tons of COke per metric ton. As a result, the signatories argued that many existing installations would already be Class B compliant and would have access to environmentally friendly government procurement without additional emission reductions.

Calling for stricter selection criteria

Regarding wire rod, the coalition stated that performance class B mainly includes imported DRI-EAF and BF-BOF products based on natural gas, while as a large part of European production already depends on electric arc furnaces. The signatories argued that fossil fuel-based production routes should not correspond to Classes A and B.