Toward a tradable, low-carbon product standard for steel: policy design considerations for the United States
Steel production in the United States accounts for around 100 million tons of carbon dioxide equivalent emissions. Available and emerging technologies have the ability to significantly decarbonize the steel industry. A low-carbon product standard for steel in the United States can incentivize the adoption of these technologies and result in emissions reductions while preserving the international competitiveness of domestic steel manufacturers. This paper offers recommendations on key design considerations for a low-carbon product standard for steel, including what products and emissions should be covered by the standard, how to define an emissions intensity metric and set a benchmark, reporting requirements, crediting and compliance, and how to address the risk of leakage and competitiveness concerns. Due to a lack of publicly available data, this paper does not recommend specific levels for policy design elements.