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About Commodity Insights
15 Feb 2022 | 21:39 UTC
By Nick Lazzaro
Highlights
Sustainable metals required for EVs, renewable energy
Carbon intensity to be considered in trade
Emphasis placed on domestic buying of clean materials
The US will take steps to support the domestic production and procurement of steel and aluminum made with lower-carbon methods as part of a slate of new initiatives that are aimed at boosting American leadership in "clean" manufacturing, the White House said Feb. 15.
"The Biden-Harris administration is announcing new actions across agencies to support American leadership on clean manufacturing, including low-carbon production of the steel and aluminum we need for electric vehicles, wind turbines, and solar panels," the White House said in a statement.
The US will use trade policy as a method of achieving lower carbon emissions in the steel and aluminum industries, according to the statement, an approach that was first presented in 2021 as part of a metal trade deal with the EU.
"Together, the US and EU are working to restrict access to their markets for dirty steel and limit access to countries that dump steel in both markets, contributing to worldwide over-supply," the White House said. "The arrangement will be open to any interested country that wishes to join and meets criteria for restoring market orientation and reducing trade in high-emissions steel and aluminum products."
The US and EU introduced the joint initiative for tackling emissions in the metal sectors when the US agreed to replace its steel and aluminum tariffs on imports from the EU with a quota scheme. The governments vowed to collaboratively build a framework by 2024 to promote cleaner steel and aluminum production and address global overcapacity in both sectors.
"It will thus drive investment in green steel and aluminum production in the US, Europe and around the world, ensuring a competitive US steel and aluminum industry for decades to come," the White House said.
The initiatives mainly seek to tackle excess carbon-intensive capacity in China.
The White House said it will establish a "Buy Clean Task Force" comprised of several government agencies to encourage the purchase and use of more sustainably manufactured construction materials.
The task force will identify materials, such as steel and concrete that are produced with a lower carbon footprint, for utilization in federally funded projects under the provision.
The Department of Transportation, for instance, will initiate efforts to use more low-carbon materials in federal transportation projects.
The White House's strategy for clean material procurement will also extend into the corporate sector and involve the First Movers Coalition of business leaders that was launched at COP26.
"The First Movers Coalition is making clean purchasing commitments, beginning with steel, shipping, trucking, and aviation," the While House said. "Today, the administration is announcing plans to expand the First Movers Coalition to cover four additional sectors in 2022: aluminum, cement, chemicals and carbon removal."
The announcement presented an initial framework for funding the development of hydrogen hubs, interdisciplinary industrial decarbonization research and carbon capture technology.
"The industrial sector is central to tackling the climate crisis, as it is currently responsible for nearly a third of domestic greenhouse gas emissions," the White House said.
The use of hydrogen could reduce emissions in many sectors, especially those that are difficult to decarbonize, such as steel manufacturing, according to the announcement.
The White House said its emphasis on clean manufacturing will complement upcoming spending from the US' infrastructure investment package to reduce climate pollution, grow the economy and create jobs.
"... the president's Build Back Better agenda will further boost clean manufacturing and American competitiveness for decades to come, by supporting low-carbon processes across our industrial base; driving long-term investment in our clean steel, cement, and aluminum industries; and increasing domestic production of electric vehicles, wind turbines, solar panels, and more," the statement said.