Technology standards

Background

The renewable energy sector faced difficulties in expanding quickly, partially due to a lack of agreed-upon technology standards regarding new technologies’ performance, reliability, and durability. The setting of standards, procedures, and guidelines reduces barriers to the scaling of technologies, making large-scale adoption easier.^[1] The steel industry can learn from other industries’ lessons and prevent similar challenges through early preparation and the development of institutions that determine and enforce technology standards. This is particularly important now, as many steel producers have started to determine their transition strategies, including technologies they might use. Uncertainty about the acceptance and effectiveness of technologies may slow this process and hence the transition.

In many countries, for example, carbon capture, utilization, and storage (CCUS) is considered a sustainable technology that can effectively reduce emissions, despite limited success or implementation in the past. Some countries such as Germany, however, disagree with that sustainable definition. Germany has imposed partial bans on carbon storage, promoting instead other types of technologies for decarbonization.^[2] Although every country has the right to determine its own definitions, it makes international comparability easier when such definitions are aligned with each other. It also increases awareness by consumers when it is clear whether the international steel they buy is indeed considered low-emissions in their own country — for example, when the production involves CCUS processes.

Policy Action

Policy targets to create effective technology standards include:^[3]

Clearly define the sustainability category of steelmaking technologies, e.g., whether CCUS is considered a low-emissions technology.^[4] This includes acknowledging that many different technologies will be used across plants and that all relevant pathways will be supported.
Create standards for low-emissions steelmaking technologies, including the effectiveness, efficiency, and carbon-reduction levels required.
Collaborate internationally to align standards and definitions of technologies and to level the global playing field.