Hannover (ots) – Today, the Steel Association and the Federal Ministry for Economic Affairs and Climate Protection (BMWK) laid a foundation for the development of green lead markets for climate-friendly steel with the introduction of the Low Emission Steel Standard (LESS). LESS was created on the initiative of the Steel Association and its member companies and is supported by the BMWK. This label for low-CO2 steel is based on the results of the broad stakeholder process “Lead markets for climate-friendly raw materials” carried out by the BMWK.
Bernhard Osburg, President of the Steel Association, emphasizes the importance of clear rules, definitions and verifiable standards for the success of the transformation of the steel industry: “As the steel industry, we want to develop a market for climate-friendly steel in order to replace public start-up financing for our transformation as quickly as possible. To do this, we must We will make the progress in decarbonizing our locations visible, comparable and therefore assessable. The question of a green steel definition has been discussed intensively around the world for a long time. I am pleased that we have joined forces to create a definition based on international rules and standards based and broadly agreed upon solution, which we are now implementing.” Steel users receive all the information they need to document their CO2 savings goals using “green” steel – i.e. steel manufactured with low CO2 emissions.
Federal Minister for Economic Affairs and Climate Protection Robert Habeck: “The new LESS label is an important and welcome push by the German steel industry for sustainable standards and greater comparability in transformation efforts. Sustainable labels are an essential lever to ensure transparency and incentives for climate-friendly raw materials and products “The labeling takes up the results of a broad BMWK stakeholder process with business, science and politics on definitions for climate-friendly raw materials, including steel, and is therefore widely supported by the industry.”
LESS as a motor for transformation
LESS is the first standard in one of the largest steel-producing countries in the world to combine both routes of steel production: both the conventional blast furnace route in the transition to low-CO2 hydrogen-based production processes and the already low-CO2 scrap-based electric jet production. Companies on both routes are committed to taking further decarbonization steps. LESS enables the decarbonization efforts of both routes to be compared. The aim of LESS is to accelerate this transformation to climate neutrality using market-based means. LESS is therefore designed to be much more ambitious than comparable labels. LESS makes both the current status of transformation and the transformative efforts undertaken on the way to producing “near-zero” steel across all process routes visible and therefore marketable. Those who boldly move forward with investments in climate-neutral steel can be rewarded on the market.
Uniform labeling and classification
The centerpiece is the labeling system, which enables low-CO2 steel to be classified using a graduated classification scale. At the same time, companies that certify according to LESS must report their scrap quota as well as the Product Carbon Footprint (PCF) or Global Warming Potential (GWP)-total contained in the finished steel product in accordance with the Environmental Product Declaration (EPD). Steel users thus receive all the information they need to document their climate goals using low-CO2 steel. The LESS rulebook forms the basis for independent certification.
BMWK stakeholder process
The introduction of LESS was preceded by a year-long stakeholder process “Lead markets for climate-friendly raw materials”, which was organized by the BMWK and completed in November 2023. More than 60 representatives from political institutions, manufacturing companies, steel traders, the processing and consumer sectors as well as members of NGOs, institutes and think tanks were involved. With the launch of LESS, the steel industry in Germany is implementing the results of this stakeholder dialogue for the steel industry.
International connectivity
LESS is designed for international collaboration. On the one hand, the system is based on the internationally recognized proposal of the International Energy Agency (IEA), which was recognized by the G7 countries in May 2022 as a robust starting point. On the other hand, LESS will be managed as system owner from autumn 2024 by an AISBL of the same name based in Brussels (similar to the eV in Germany), which is already in the process of being founded. LESS is a voluntary label open to all steel producers.
Further information can be found at 4:30 p.m
The Steel Association is the voice of steel producing companies in Germany, which have set themselves the goal of producing their steel in a CO2-neutral manner by 2045 – and thus saving a third of total industrial greenhouse gas emissions. The association, headquartered in Berlin, advocates for a political framework that makes a climate-neutral and strong steel location possible in the future. At 40 million tons, Germany has the largest steel capacity in Europe.
Questions & Contact:
Katharina Schmidt-Narischkin
Press spokesperson
+49 30 232 5546-15
katharina.schmidt-narischkin@wvstahl.de
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