First Movers Coalition Steel Commitment

The mission of the First Movers Coalition (FMC) is to advance the most critical emerging climate technologies required for deep decarbonization of the world’s heavy-emitting sectors. To do this, FMC is building early market demand for such technologies by 2030, in order to help scale and catalyse their mainstream adoption for carbon-intensive sectors. Commitment details Members of the First Movers Coalition Steel sector commit to purchase near zero-emissions steel satisfying the following criteria: – Crude steel from breakthrough technology production facilities. Per IEA guidance, the steel should emit <0.4 (0% scrap inputs) to <0.05 t (100% scrap inputs) of CO2e per tonne of crude steel produced1 – The analytical boundary captures the main emissions-intensive steps and emissions sources of steel production up to the crude steel boundary, in alignment with IEA guidance2 in the report Achieving Net Zero Heavy Industry Sectors in G7 Members – Steel (satisfying the FMC threshold) may follow identity preserved3 or segregated4 chain of custody models. Controlled blending5 and site-level mass balance6 chain of custody models may also be used given that emissions claims are tracked (e.g., via a registry) and verified by a third party to provide transparency, avoid double counting, and ensure accuracy. Group-level mass balance and book & claim7 chain of custody models are not applicable to the FMC steel commitment at this time.8 Decisions made within the transport sector regarding alternative chain of custody approaches can also be applied to the transport-related emissions of materials in other FMC sectors such as steel. This promotes consistency across sectors and reflects the interconnected nature of supply chains. An overview of which chain of custody model is allowed in which sector can be found here. In addition, the First Movers Coalition has established high-level, cross-sector guardrails that must be followed when implementing chain of custody models and can be found here. These commitments do not include steel that does not meet the sliding scale emissions threshold defined by First Movers Coalition or carbon offsets. Leading analysis identifies that our goals are most likely to be accomplished with steel production using nascent and advanced green technologies – such as electrowinning, electrolizers, CCUS (carbon capture use and storage) and CCS (carbon capture and storage) with existing processes or DRI-EAF using zero-carbon H2. First Movers Coalition – Steel commitment The First Movers Coalition has set ambitious commitments for purchasers of steel: “At least 10% (by volume) of all our steel purchased per year will be near-zero emissions (as per FMC definition) by 2030” Steel 1 0.4 Out of scope In scope 0.05 0 0% 100% t CO2e/t crude steel