Methodological analysis of draft label for iron and steel
For the implementation of the Ecodesign for Sustainable Products Regulation (ESPR), the Joint Research Centre (JRC) proposed labelling systems for five types of steel products based on the carbon intensity of their production. This is an important step towards decarbonising a sector with a very high climate impact - but only if it is done right.
The proposed performance classes would unintentionally regard almost all steel on the EU market as green, resulting in little impact on demand for decarbonised steelmaking. That is why ECOS has analysed the JRC’s proposal and provided recommendations for future proposals, namely:
• Use Emissions Trading Scheme (ETS) data for European production and Carbon Border Adjustment Mechanism (CBAM) data as a basis.
• Use transparent and realistic corrections where the scope diverges from ETS and CBAM.
• Weigh greenhouse gas (GHG) intensities are according to presence on the EU market.
• Consider CBAM-induced resource shuffling is for imports.
• Follow other labelling proposals and set cut-offs in sparsely populated ranges of emission intensities.
Learn more in our full analysis, which begins by analysing the JRC’s proposal and its shortcomings before applying our recommendations.
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