Metallurgical Myopia Magnifies Global EmissionsCoal remains the most carbon-intensive fossil fuel, yet the debate often focuses on power plants rather than metallurgical coal, known as met coal, used in steelmaking. Industrious Labs warns that burning every metric ton of met coal releases about 2.668 metric tons of CO₂. This process, rooted in centuries-old blast furnace technology, remains among the most polluting industrial methods, contradicting modern climate goals.

Taxation Twist Tilts Toward Outdated TechnologyUnder the Trump administration’s new tax bill, met coal is labelled a “critical mineral,” making it eligible for the advanced manufacturing production tax credit. despite being neither advanced nor aligned with decarbonisation goals. According to Inside Climate News, the credit could be worth $200–300 million yearly, equating to $400–600 million over two years, which could otherwise support domestic clean steel projects.

Export Emissions Eclipse Domestic EffortsThe U.S. exported around 46 million metric tons of met coal in 2023, linked to over 123 million metric tons of CO₂ emissions abroad, roughly matching the annual carbon footprint of Bangladesh, a nation of over 171 million people. While domestic coal-based steel producers emit far less, U.S. policy indirectly fuels dirtier steel production overseas, undermining the nation’s clean steel narrative.

Contradictions Confront CompetitivenessThe tax credit undermines U.S. steelmakers investing in cleaner technologies. Firms like Cleveland-Cliffs in Ohio & Hyundai’s hydrogen-ready DRI project in Louisiana face tougher competition from cheaper coal-based steel abroad. Subsidising met coal, Industrious Labs argues, makes foreign dirty steel cheaper, weakening domestic clean steel’s market position.

Missed Modernisation Moments & Monetary MisalignmentInstead of funnelling subsidies into met coal, those funds could support modernisation through initiatives like the Industrial Demonstration Program. Two major steel modernisation projects previously targeted under the program each sought $500 million in funding, demonstrating the scale needed to incentivise private sector investment in clean steel.

Subsidised Steel Sabotages Sustainability StrategyBy lowering the cost of coal-heavy production abroad, the tax bill undermines domestic tariffs, clean steel investments & climate commitments. The U.S. becomes both a leader in recycled, low-emission steel & an enabler of high-emission production overseas — a contradiction that threatens its industrial competitiveness and environmental credibility.

Transition Targets Trump Traditional TechnologyIndustrious Labs advocates shifting from blast furnaces reliant on met coal to greener methods like green hydrogen-based direct reduced iron. Unlike coal, these technologies align with global market trends & the U.S.’ long-term climate strategy, offering both emissions reduction & innovation-driven competitiveness.

Global Green Goals Guide Future GrowthThe steel sector’s global decarbonisation is essential; subsidising met coal prolongs fossil-fuel dependency in major economies and trading partners. U.S. policymakers, the group urges, must tackle this hidden export-driven pollution, investing instead in clean technologies that protect American industry, jobs & global climate objectives.

Key Takeaways:

• U.S. exported 46 million metric tons of met coal in 2023, driving 123 million metric tons of CO₂ abroad.

• Trump administration’s tax bill subsidises met coal by labelling it “critical,” risking $200–300 million per year in credits.

• Subsidies undermine clean steel efforts by firms like Cleveland-Cliffs & Hyundai, harming competitiveness.