USTR Calls For GHG Investigation Into Steel And Aluminum Production

The office of the U.S. Trade Representative (USTR) has announced that Ambassador Katherine Tai had asked to the U.S. International Trade Commission (ITC) to conduct an investigation into, and issue a public report on, the greenhouse gas (GHG) emissions intensity of steel and aluminum produced in the United States.

The report is intended to inform discussions with the European Union (EU) regarding the Global Arrangement on Sustainable Steel and Aluminum. Ambassador Tai’s office noted the Global Arrangement is meant “to discourage trade in emissions-intensive steel and aluminum products that contribute to global non-market excess capacity from other countries.” Ambassador Tai said the agreement with the EU also is meant “to ensure that domestic policies support lowering the GHG emissions intensity of these industries.”

Specifically, Ambassador Tai said the ITC should:

• Conduct a survey of firms with facilities producing steel and aluminum in the United States, whether the firms are U.S.- or foreign-owned, in order to collect data on their steel and aluminum production and the associated GHG emissions. The survey should seek to gather data that is not already reported pursuant to the U.S. Environmental Protection Agency GHG Reporting Program (GHGRP) or other publicly available information.
• Use the information obtained through the survey and external data sources to estimate the highest and the average GHG emissions intensity of steel and aluminum produced in the United States by product category in 2022. These percentile and average estimates should, to the extent possible, be weighted by metric ton of steel or aluminum production associated with each emissions-intensity data point.
• Produce GHG emissions intensity estimates for the broad categories of steel and aluminum products.
• Consider producing GHG emissions intensity estimates for additional product categories, including at subcategory levels.

The report must be sent to the office of the USTR by January 28, 2025. Click here to read Ambassador Tai’s guidance on what steel and aluminum producers’ GHG emissions intensity estimates should include.

The United States and the EU will seek to conclude the negotiations on the Global Arrangement by October 2023.