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

This fact sheet from RMI advocates for product-level greenhouse gas (GHG) accounting in the steel industry, specifically differentiating between ore-based and scrap-based production to enable informed purchasing decisions and drive decarbonization.

• Steel production is a major contributor to global emissions, accounting for approximately 2.6 Gt CO2 per year from fuel combustion and an additional 1.1 Gt CO2 per year from electricity-based emissions, totaling roughly 7% of global emissions.
• There is a significant disparity in energy intensity and emissions between the two primary steel production methods: ore-based (primary) and scrap-based (secondary). 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.
• While increasing the use of scrap-based steel is a decarbonization lever, it is limited by supply; models indicate that recycled scrap will only satisfy half of the total steel demand by 2050. Consequently, achieving sector decarbonization requires technological advancements in ore-based production, such as green hydrogen-based direct reduction.
• RMI has developed Steel Emissions Reporting Guidance to help supply chain actors report product-level emissions. This transparency allows steelmakers to differentiate their products based on their ore-based and scrap-based supply chain segments, enabling purchasers to support recycling and the deployment of low-emissions technologies.

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} }