Green steel

FAQ: Green steel

What exactly is green steel?

Green steel is a broad, unregulated term that generally refers to steel made with reduced carbon emissions. However, there is no official definition.

What is zero-emission steel?

Mostly a marketing term. There is no such thing as truly zero-emission steel, at least not yet.

Even the cleanest production methods available still generate emissions. While new technologies are being developed that might enable truly zero-emission steel in the future, the reality is: we're simply not there yet.

When companies claim their steel is "zero-emission," they are usually highlighting one small part of the process, such as the use of renewable electricity, while ignoring other significant sources of emissions. Alternatively, they may be purchasing carbon credits to offset their emissions. But this doesn’t actually reduce emissions; it just shifts the problem.

What are carbon credits?

Carbon credits are certificates representing the reduction or removal of one metric ton of CO₂-equivalent emissions. They are a financial instrument that allows companies to offset their emissions by funding emission-reduction projects elsewhere (e.g., planting trees). They do not reduce emissions from the production itself.

What’s the difference between low-carbon steel and green steel?

  • Low-carbon steel refers to steel with a low carbon content in its alloy composition and is unrelated to emissions.
  • Green steel refers to steel with a low CO₂ footprint, produced using low-emission or renewable processes, regardless of its composition.

It’s a common confusion, but they describe different things: chemical composition vs. environmental impact.

What is ResponsibleSteel™?

ResponsibleSteel™ is a global standard and certification initiative for the steel industry. It sets ESG performance standards for responsible sourcing and production, helping buyers identify more sustainable steel sources.

What are Scopes 1, 2, and 3 emissions?

These are categories for greenhouse gas emissions:

  • Scope 1: Direct emissions from the production process (e.g., on-site fuel use)
  • Scope 2: Indirect emissions from electricity used
  • Scope 3: Indirect emissions from the full value chain (e.g., raw materials, transport, upstream supply)

When comparing emissions, always ask which scopes are included. Many “green” claims only reflect Scope 1 or 2.

What should I look for to verify green steel claims?

  • EPDs (Environmental Product Declarations): Independent, third-party verified emissions data
  • LCAs (Life Cycle Assessments): Emissions measured across the entire product lifecycle
  • Clear Scope breakdowns: Does the claim include Scope 3?
  • Renewable energy usage: Is the electricity truly green?
  • Carbon offsets: Always ask if emissions are reduced or simply neutralized with credits

What’s an EPD (Environmental Product Declaration)?

An EPD is a standardized, third-party verified report that summarizes environmental data from a Life Cycle Assessment. It provides transparency and comparability between products.

What is an LCA (Life Cycle Assessment)?

LCA is a standardized method to evaluate the environmental impacts of a product throughout its entire lifecycle. For green steel, LCA helps quantify carbon footprint, resource use, and emissions to assess sustainability in a holistic, comparable way.

What is a PCF (Product Carbon Footprint)?

PCF measures the total greenhouse gas emissions (typically in CO₂-equivalents) associated with a specific product - from cradle to gate or cradle to grave.

What role does hydrogen play in green steel?

Hydrogen is a promising technology for reducing iron ore without carbon-intensive coke or coal. It replaces carbon with hydrogen in the reduction process, creating water vapor instead of CO₂. It’s key for future green primary steel (made from iron ore).

However, we already avoid these emissions by producing steel from scrap in electric arc furnaces (EAF).

It is important to note that while improvements are being made and this technology has big potential for the future, it is not yet available at scale.

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