Steel Supply Chain Emissions Transparency: A Product-Level GHG Accounting Approach

The document advocates for product-level emissions reporting in the steel sector to enable purchasers to make informed decisions that drive decarbonization. It highlights the significant difference in energy and emissions intensity between ore-based steel (average energy intensity ~21.4 GJ/t) and scrap-based steel (~2.1 GJ/t). While increasing the share of scrap-based steel is a key lever, the document notes that recycled scrap is projected to meet only half of overall steel demand by 2050, necessitating technological improvements in ore-based production, such as green hydrogen-based direct reduction. RMI provides a Steel Emissions Reporting Guidance to help steelmakers report emissions by production process, allowing them to demonstrate both incremental reductions via scrap use and transformational reductions via process changes and zero-emissions electricity.

• Steel production is a major global emitter, contributing approximately 2.6 Gt CO2/year from fuel combustion and 1.1 Gt CO2/year from electricity-based emissions, representing about 7% of global emissions.
• There is a stark contrast in energy intensity and emissions between production methods: ore-based steel has an average energy intensity of ~21.4 GJ/t and accounts for 93% of total steel emissions, while scrap-based steel has an average energy intensity of ~2.1 GJ/t and accounts for 7% of emissions.
• Increasing the use of scrap-based steel is a decarbonization lever, but its impact is limited by supply; models indicate that recycled scrap will only satisfy 50% of total steel demand by 2050.
• To achieve deep decarbonization, the industry must implement technological improvements in ore-based production, such as green hydrogen-based direct reduction, and incorporate renewables to reduce emissions from electric-arc furnaces used in scrap processing.

APA

RMI (n.d.). Steel Supply Chain Emissions Transparency: A Product-Level GHG Accounting Approach. https://rmi.org/app/uploads/2022/07/horizon_zero_steel_two_pager.pdf

Chicago

RMI. Steel Supply Chain Emissions Transparency: A Product-Level GHG Accounting Approach. n.d. https://rmi.org/app/uploads/2022/07/horizon_zero_steel_two_pager.pdf.

Wikipedia

{{cite report |author=RMI |title=Steel Supply Chain Emissions Transparency: A Product-Level GHG Accounting Approach |url=https://rmi.org/app/uploads/2022/07/horizon_zero_steel_two_pager.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmindsteel, author = {{RMI}}, title = {{Steel Supply Chain Emissions Transparency: A Product-Level GHG Accounting Approach}}, institution = {RMI}, url = {https://rmi.org/app/uploads/2022/07/horizon_zero_steel_two_pager.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }