Steel is a vital part of modern life and one of the key enablers of a decarbonized economy. But steel making is responsible for around 7% of global emissions – as demand continues to rise, the world urgently needs to address the environmental impacts of the steel sector and find ways to decarbonize steel making around the world.
Over 70% of new steel produced in the USA is made from recycled scrap steel. Electric Arc Furnace steel making has made the US the world’s greenest major steel producer. However, with rising global demand and limited supplies of scrap steel, steel making around the world won’t be decarbonized unless we decarbonize the most challenging part of the steel industry: the production of steel from iron ore. The Inflation Reduction Act offers the USA an opportunity to lead this transition and establish its leadership in the global market for green steel products.