Context & Catalyst: The Race for Green Steel

As nations worldwide craft industrial strategies to meet net-zero targets, defining what qualifies as “green steel” has become both technically & politically contentious. Current proposals often rely on sliding scales or benchmarking that favour virgin raw material producers, risking the misclassification of higher-emission products as sustainable. BIR’s new Position Paper, published on July 11, 2025, aims to reshape this conversation, anchoring definitions in scientifically verifiable total lifecycle emissions.

Circularity vs Conventional: The Recycled Advantage

“Steel made from recycled materials via EAF technology can cut emissions by up to 74% compared to traditional blast furnace production,” explains Susie Burrage OBE, BIR President. The message: recycling isn’t a niche pathway; it’s the most immediate, proven route to large-scale decarbonisation. Yet, policy frameworks too often overlook this reality, diluting real progress by treating virgin-based production methods more leniently or incentivising them with public funds.

Lifecycle Logic: Beyond Production Method

BIR argues that “green” status must hinge on measurable, end-to-end emissions rather than just production technology or feedstock origin. This approach aligns with growing consensus among environmental economists & life-cycle assessment specialists, who stress that narrow metrics can misdirect investment and erode credibility.

Arnaud Brunet, BIR’s Director General, underscores this point: “Public policy must focus on outcomes, not labels. Recycled-content steel delivers demonstrable CO₂ savings today, yet it risks being sidelined if definitions aren’t grounded in real data.”

Trade Tensions & the Scrap Conundrum

A central warning in BIR’s paper concerns export restrictions on recycled steel – a trend seen in some jurisdictions seeking to boost domestic supply. While politically appealing, such measures threaten to fracture global supply chains, reduce recycling rates in exporting countries, & delay adoption of circular steelmaking in import-reliant regions.

“Global trade in recycled steel is essential for decarbonisation,” says Ms Burrage. “Closing borders won’t help the climate; it just redistributes emissions and slows the transition.”

Public Procurement Power & Circular Mandates

Another pillar of BIR’s recommendations is leveraging public procurement. By mandating minimum recycled content in steel for public infrastructure, transport, & construction projects, governments can directly stimulate demand for low-carbon materials. Such policies, BIR argues, would also give EAF producers and recyclers a predictable market signal, accelerating investment in capacity & advanced sorting technology.

Calls to Action: Five-Point Framework

BIR’s position paper outlines five key actions for policymakers:

• Base green steel standards on actual, measurable lifecycle emissions.

• Resist export bans or restrictions on recycled steel to keep supply chains resilient.

• Use public procurement & incentives to boost demand for circular, low-carbon steel.

• Invest in better scrap collection & sorting infrastructure to raise recycling rates.

• Include recyclers in policy discussions & standard-setting processes.

Broader Implications: Green Steel at a Crossroads

With global steel accounting for roughly 7% of greenhouse gas emissions, the stakes are enormous. Misaligned standards risk undermining decarbonisation efforts, while fair, data-driven frameworks could unlock rapid, large-scale emissions reductions. As BIR frames it, recycling is not a side-note but the cornerstone of credible green steel strategies.

Industry Voice & Ethical Imperative

“The recycling industry is a key partner in the transition to a cleaner, more circular economy,” Ms Burrage concludes. “Getting the green steel framework right is not just about fair competition, it's about ensuring policies truly deliver on climate and resource efficiency promises.”

Key Takeaways:

• BIR urges defining green steel by lifecycle emissions, not production labels.

• Recycling via EAF can reduce emissions by up to 74% vs. blast furnace routes.

• Trade barriers on scrap risk harming global decarbonisation & recycling rates.

• Public procurement should require recycled content to boost demand & innovation.

• Recyclers must be included in green steel policy & standards discussions.