Embodied CO2 Emissions in Steel Imports to the U.S.
A White Paper on Steel Trade, Carbon Competitiveness, and Decarbonization
Author: Ali Hasanbeigi
Approximately 24% of the steel produced globally is traded, with the U.S. importing 27.6 million tonnes in 2019, equating to 28% of the steel used in the country. The carbon intensity of steel production varies significantly between countries, leading to the risk of carbon leakage as production shifts to countries with lower climate ambitions or regulations. The U.S. steel industry possesses a carbon advantage over many of its import sources, which should be leveraged to promote cleaner domestic steel production and encourage decarbonization globally.
A Border Carbon Adjustment or Carbon Tariff is a policy tool that can help prevent carbon leakage and support the U.S. government's ambitious climate targets, including reducing emissions by 50%-52% below 2005 levels by 2030 and reaching net-zero emissions by 2050.
This white paper analyzes the CO2 intensity and trade of steel in the U.S., as well as the carbon competitiveness of the domestic steel industry. Using 2019 as the base year, the analysis reveals that the total embodied carbon in steel imports to the U.S. was approximately 38 million tonnes (Mt) of CO2. This is roughly 45% of the total CO2 emissions of the steel industry in the U.S. in 2019.
If the imported steel were produced domestically, there would be a significant reduction in CO2 emissions due to the lower carbon intensity of U.S. steel production. The potential annual CO2 emissions reduction from producing imported steel in the U.S. amounts to approximately 11.3 Mt CO2, or 13% of the total annual CO2 emissions of the steel industry in the U.S. Leveraging the carbon advantage of the U.S. steel industry through policy measures like Border Carbon Adjustment or Carbon Tariff and Buy Clean can play a crucial role in achieving national and global climate goals.
To read the full document and see the complete results and analysis of this new study, Download the white paper from the link above.
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