Book and Claim Framework for the Iron and Steel Sector

The RMI framework establishes rules for the issuance, transfer, and retirement of Book-and-Claim Units (BCUs) for low-emissions iron and steel. It introduces a dual functional-unit system (iron and crude steel) with eligibility thresholds anchored to ResponsibleSteel's Decarbonization Progress Level 3 (DPL3). To prevent fossil lock-in, the framework mandates route-specific criteria, including a 2035/2040 phase-out for BF-BOF eligibility and strict 90% capture rates for CCS/CCUS. It defines rigorous accounting methods—direct and enhanced substitution—to prevent over-claiming and double counting, while prohibiting on-product claims to maintain the incentive for physical green steel procurement.

• The framework utilizes a dual functional-unit structure where environmental attribute certificates (EACs) can be generated at either the iron stage (pig iron, DRI, HBI, cast, or electrolytic iron) or the crude steel level (blooms, billets, and slab).
• Eligibility for BCU issuance is based on emissions intensity thresholds anchored to ResponsibleSteel's Decarbonization Progress Level 3 (DPL3). For iron, the threshold is set at ≤1 t CO2e per ton of iron; for crude steel, it ranges from 0.2–1.2 t CO2e per ton depending on the scrap share of metallic input.
• To avoid fossil lock-in, the framework imposes route-specific constraints: BF-BOF facilities are only eligible for issuance until 2035 in advanced economies and 2040 globally, and any BF-BOF facility commencing operation on or after 2030 is ineligible regardless of CCS/CCUS equipment.
• CCS/CCUS-based production must achieve a minimum 90% capture rate at the highest emitting point of capture, and captured CO2 must be permanently stored in geological storage with leakage not exceeding 0.5% of the transported mass.
• The framework requires three types of additionality: regulatory (minimum requirement), financial, and common practice. Suppliers must disclose all regulatory obligations and provide evidence that their performance exceeds these requirements.
• For iron baselines, the framework recommends using EU Carbon Border Adjustment Mechanism (CBAM) default factors as an interim solution, covering 33 countries with values ranging from 1.11 t CO2/t iron (Canada) to 4.2 t CO2/t iron (India).
• A scrap-variable sliding scale approach is proposed for steel baselines to account for the significant impact of scrap content on emissions intensity and to prevent the artificial inflation of claims.
• The framework prohibits 'on-product claims,' meaning BCUs cannot be used to label physical products as 'green' or 'low-carbon,' nor can they be used to alter Environmental Product Declarations (EPDs) or Life Cycle Assessments (LCAs).
• Two primary accounting methods are defined for buyers: 'Direct Substitution,' used when the BCU closely matches the physical product type and boundary, and 'Enhanced Substitution,' which uses a net reduction calculation and requires a 'BCU baseline cap' to prevent reporting zero or negative emissions.
• Co-claiming is permitted for up to three entities, provided they operate in the same end-use value chain but represent distinct value-chain layers (e.g., a component manufacturer, an OEM, and a final owner).

APA

Liu, W., Wu, I., & Masterson, M. (2026). Book and Claim Framework for the Iron and Steel Sector. RMI. https://rmi.org/app/uploads/dlm_uploads/2026/03/rmi-february-2026-Manuscript-Steel-Book-and-Claim-Framework-2.pdf

Chicago

Liu, Wenjuan, Iris Wu, and Maeve Masterson. Book and Claim Framework for the Iron and Steel Sector. RMI, 2026. https://rmi.org/app/uploads/dlm_uploads/2026/03/rmi-february-2026-Manuscript-Steel-Book-and-Claim-Framework-2.pdf.

Wikipedia

{{cite report |last1=Liu |first1=Wenjuan |last2=Wu |first2=Iris |last3=Masterson |first3=Maeve |title=Book and Claim Framework for the Iron and Steel Sector |publisher=RMI |date=6 March 2026 |url=https://rmi.org/app/uploads/dlm_uploads/2026/03/rmi-february-2026-Manuscript-Steel-Book-and-Claim-Framework-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{liu2026book, author = {Liu, Wenjuan and Wu, Iris and Masterson, Maeve}, title = {{Book and Claim Framework for the Iron and Steel Sector}}, institution = {RMI}, year = {2026}, month = mar, url = {https://rmi.org/app/uploads/dlm_uploads/2026/03/rmi-february-2026-Manuscript-Steel-Book-and-Claim-Framework-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }