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 often made where renewable energy is abundant, while buyers are located elsewhere. A book-and-claim system, similar to mechanisms used for renewable electricity certificates, is proposed as a fix, letting companies purchase the environmental attributes of green steel even when the physical material is delivered from a different region. The approach aims to accelerate demand but raises questions about verification and credibility.