The WTO Secretariat has released a new information note on Decarbonization standards for the steel industry entitled “Decarbonization Standards and the Steel Industry: How the WTO can support Greater Coherence”, highlighting the importance of addressing the needs of developing countries in terms of decarbonization standards. The note was released ahead of a global stakeholder event on the WTO Steel decarbonization Standard scheduled for March 9, 2023.
According to the WTO secretariat, there are currently more than 20 different standards and initiatives for the decarbonization of the steel industry worldwide, which could create uncertainty for global steelmakers, increase transaction costs and create the risk of trade friction. The note notes that further work is needed at the WTO to strengthen the consistency of global standards, including finding areas of further convergence on specific measurements of decarbonization, and that it is critical to ensure that the perspectives of developing countries are taken into account.
At the United Nations Climate Change Conference (COP27) in Sharm el-Sheikh, Egypt, in November 2022, WTO Director-General Ngozi Okonjo Iweala called for greater international cooperation on trade-related climate policies, including standards for decarbonization. Achieving global net zero requires consistent measures of greenhouse gas emissions. However, standards and certification methods are not uniform across countries and sectors, which can lead to fragmentation and create barriers to trade and investment.
The WTO Secretariat will host an event entitled “Standards for Decarbonizing Trade: Promoting Consistency and transparency in the steel Industry” on 9 March 2023. The event focused on the steel industry, bringing together representatives of WTO member states with industry leaders and experts to facilitate a multi-stakeholder dialogue on how consistent and transparent standards can play a key role in accelerating the global roll-out of low-carbon steelmaking technologies and avoiding trade frictions. The event will be broadcast live from Geneva, Switzerland.