Green Steel Blog

Standardised labelling of CO2-reduced steel

We welcome the initiative of the German government together with the German Steel Federation.

The Low Emission Steel Standard (LESS) is a voluntary labelling system under private law and for the first time offers a standardised calculation and classification of low-emission steel produced with broad industry support and political backing.

LESS creates comparability: the climate-relevant emissions achieved in the steel production process are categorised according to the reduction. LESS creates transparency: it excludes greenwashing through ambitious and location-based accounting rules and makes the actual status of the transformation visible. Certification by independent third parties will ensure credibility and legitimacy. According to the German Steel Federation, the first certifications are to take place this year.

clear presentation of the key data: the draft for the LESS label

In the LESS Rulebook, all definitions refer to hot-rolled steel. The relevant (over 90 %) sources of greenhouse gas emissions in steel production are being considered. In addition to direct greenhouse gas emissions from the producing plant (Scope 1), the accounting framework also includes emissions from the provision of energy (Scope 2) as well as indirect emissions from the upstream chain, for example from the provision of fossil fuels or hydrogen as well as other substances used such as lime or alloying agents (Scope 3).

Based on emission thresholds, structural steel can be classified into five categories or levels. In addition to the ‘near zero’ category, there are four further categories from A to D, so that intermediate steps on the way to climate-friendly steel are honoured and made visible.

Image: German Steel Federation, Annex to the LESS-Rulebook

The threshold values for near-zero emission steel place ambitious demands on production processes and energy use as well as on the upstream chain. The value can only be achieved if steel production is carried out entirely with green hydrogen or green electricity, and if emissions within the upstream chain are also significantly reduced compared to current levels.

LESS is open to all companies in the industry that want to voluntarily communicate and verify their progress in reducing their climate-relevant emissions during steel production.

Steel that carries transparency.