Global Convention Underscores Steel’s Green Metamorphosis

On May 26, 2025, leaders from the global recycling and steel industries convened in Valencia, Spain, for the Bureau of International Recycling’s World Recycling Convention. A centrepiece of the event was the Ferrous Division meeting, chaired by Shane Mellor, Managing Director of Mellor Metals (GBR). Delegates were presented with a landmark report, The Environmental Benefits of Recycling, co-developed with global consultancy KPMG. The report laid out staggering environmental savings made possible by using recycled scrap to produce crude steel, calling it a key lever for decarbonising the steel industry.

Recyclers as Vanguards of Climate Resilience

Shane Mellor spoke passionately about the industry’s pivotal position in supporting climate goals, noting that over 90% of global crude steel is now produced in countries that have pledged carbon neutrality. Mellor declared, “Metal recyclers are key enablers of this shift< but we need credible, quantifiable data to demonstrate the immense environmental impact of recycled steel.” The data-backed study, he said, arms recyclers with evidence to influence legislative frameworks and investment flows that often favour primary production.

Staggering Statistics: Carbon, Energy, Water & Land Saved

The KPMG-led study revealed that producing steel from scrap instead of virgin materials can slash CO₂ emissions by up to 1.67 metric tons per ton of steel produced. Scaled globally, this translates to carbon savings equivalent to the entire annual emissions of countries like Italy or South Korea. Energy consumption drops by up to 70%, equal to powering 200 million homes for a year. Water savings were pegged in the trillions of liters, comparable to 20 million Olympic-sized pools, due to less mining, processing, and cooling requirements. Additionally, thousands of square kilometers of natural land are preserved by avoiding the environmental degradation linked to ore mining.

Academic Validation of Systemic Ecological Gains

Professor Dr Frank Pothen from the University of Applied Sciences in Jena, Germany (DEU), gave an in-depth analysis of the report's academic significance. “Recycled steel is no longer just an economical alternative, it is an ecological imperative,” he asserted. He lauded the study’s approach in quantifying externalities that often go unnoticed in corporate accounting, from biodiversity loss to aquifer depletion. The professor noted that data like this strengthens industry arguments before policymakers and international climate forums, where metrics drive decisions.

From Abstract Figures to Relatable Visuals

During a lively Q&A session moderated by George Adams, CEO and President of SA Recycling (USA), attendees probed the practical implications of the findings. Daniel Pietikainen, BIR’s Trade and Environment Policy Officer, explained that one of the study's most potent features was its use of “magnitudes and images” that allow non-specialists to grasp complex metrics. “We’re now equipped with visuals that demonstrate, for example, how much land equivalent to several cities is saved every year,” he said. These visuals are expected to become central to advocacy efforts, educational campaigns, and stakeholder presentations.

Financial Recalibration Via Emissions Trading

Denis Reuter, COO of TSR Group GmbH & Co (DEU), added that these environmental findings are not just academic, they’re reshaping corporate finance. As more governments implement carbon trading systems, the internal cost of emissions is becoming visible on corporate balance sheets. Reuter observed, “We’re now seeing CFOs actively reconsider supply chains and material inputs due to carbon pricing pressures. Recycled steel offers both savings and compliance benefits.” He noted that clients are already integrating recycled content mandates into procurement contracts, particularly in Europe and North America.

Volatile Market Forces & Paused Ambitions

Despite these encouraging developments, the discussion also shed light on industry challenges. Atilla Widnell of Navigate Commodities said that many crude steel producers are “operating in survival mode,” with some postponing green upgrades due to cash flow constraints. Widnell pointed out that while large corporations can absorb upfront costs of decarbonisation, small- to mid-size mills, especially in developing countries, face capital access barriers. “There is a risk that without governmental incentives or grants, the transition may stall,” he warned.

Trade Tariffs & Tech Hurdles in a Changing World

The discussion also veered into policy turbulence. Michael Gaylard, Sims Metal’s Global Head of Ferrous Trade (USA), addressed the uncertainty created by tariff delays, such as the U.S. postponement of steel import tariffs on European products until July 9. He stated, “Planning shipments has become a game of wait-and-watch.” Gaylard also discussed the adoption of artificial intelligence in container operations. While interest is growing in Asia, smaller yards face logistical limitations in automating due to cramped space and high throughput. “Several steel mills have begun trials of AI in inventory and routing, but full-scale adoption will require infrastructure upgrades,” he concluded.

Key Takeaways

• Recycled steel reduces CO₂ emissions by up to 1.67 metric tons per ton, saves trillions of liters of water, and preserves thousands of square kilometers of land.

• BIR and KPMG’s new study offers visualised, credible data to support recyclers in influencing regulatory frameworks and attracting green investment.

• Tariff instability, financial constraints, and infrastructure issues continue to challenge the adoption of green steel solutions, especially in smaller operations.