green steel

The World Trade Organization will examine the European Union's carbon border adjustment mechanism following a formal challenge by Russia. Moscow argues the tariff on carbon-intensive imports, including steel and fertiliser, discriminates against non-EU exporters. The dispute adds to wider criticism of the mechanism from trading partners who see it as protectionist green policy, while the EU defends it as essential to meeting climate goals.

Green steel production faces a geography problem: low-emission steel is made where renewable energy is cheap, while buyers are often elsewhere. A book-and-claim system, similar to mechanisms used for green hydrogen and renewable power certificates, would let companies purchase the environmental attributes of clean steel produced in one region to support decarbonisation goals even if their physical supply comes from another.