AISTech Town Hall: Carbon Border Adjustments Require Monitoring, Enforcement

Cleveland-Cliffs president and CEO Lourenco Goncalves stressed that scope 1 and 2 emissions should not be considered alone, as they are only part of the problem. Scope 3 emissions need to be taken into consideration as well.

Additionally, there has to be a component that will guard against countries exporting their low-emission steel while consuming high-emission steel in their home markets, Brett said. “Otherwise, it’s just moving things around, and it’s going to get worse, not better,” he said.

“It has to take the incentive out of buying cheap dirty steel around the world. That incentive has to come about,” for carbon border adjustments to be successful, commented Chuck Schmitt, president of SSAB Americas.

US Steel president and CEO David Burritt noted that for enforcement of adjustments to be successful, there needs to be clear metrics that can be enforced. “That’s what I would like to see: All of us [American steelmakers] coming together on clear metrics that define just how good we are,” Burritt said.

Agreeing that border adjustments would need to be closely monitored to be successful, Town Hall panelists pondered who exactly would be that monitor. Burritt encouraged certification from an independent outside body – such as what his company has done with ResponsibleSteel certification at its Big River Steel Works.

By Laura Miller, Laura@SteelMarketUpdate.com