BMW

US Emphasizes Steel And Aluminum In Clean Industry Plan

High buildings with the American flag
High buildings with the American flag

The US will take steps to promote domestic production and procurement of "clean" steel and aluminum as part of a package of new initiatives aimed at positioning America to lead in "clean" manufacturing that the White House announced on Feb. 15.

The Biden-Harris administration is taking new actions across agencies to promote American leadership on clean manufacturing, including the low-carbon production of the steel and aluminum needed to make electric vehicles, wind turbines, and solar panels, or else relying on global supply chains,” the White House said in a statement.

The United States will use trade policy as a tool for achieving reduced carbon emissions in the domestic steel and aluminum industries, the statement said, a tactic that was first proposed in 2021 as part of a deal on metal trade with the European Union.

“Together, the US and EU are moving to deny dirty steel access to their markets and address access for countries that dump steel in both markets and contribute to global oversupply,” the White House said in a statement. “The agreement will be open to any country interested in joining that is willing to meet the criteria for re-establishing market orientation and reducing trade in high-emissions steel and aluminum products.”

The joint initiative on addressing emissions in the metal sectors was announced by the US and EU when the US agreed to replace its steel and aluminum tariffs on imports from the EU with a quota scheme. The administrations pledged to jointly develop an outline by 2024 for cleaner steel and aluminum production and to tackle global overcapacity within both industries.

“It will therefore incentivize investment in green steel and aluminum production in the U.S., Europe, and across the globe, ensuring a competitive U.S. steel and aluminum industry for decades to come,” the White House said.

The efforts are primarily aimed at reducing excess carbon-intensive capacity in China.

'Buy clean' provisions

The White House said it would also create a “Buy Clean Task Force” that would include multiple government agencies to push for the purchase and use of more sustainably made construction materials.

The task force will determine materials like lower-carbon-producing steel and concrete that can be used in federally financed projects under the provision.

The Department of Transportation, for example, will start working to use more low-carbon materials in federal transportation projects.

The White House’s plan calls on the corporate sector, too, and will involve the First Movers Coalition of business executives that debuted at COP26.

“The First Movers Coalition is making clean purchasing commitments, starting with steel, shipping, trucking, and aviation,” the White House said. “Today, we are announcing that the administration is expanding the First Movers Coalition to four more sectors in 2022: aluminum, cement, chemicals, and carbon removal.”

Other initiatives

Friday’s announcement outlined an early roadmap for how these funds could support hydrogen hubs, next-generation industrial decarbonization, and carbon capture technology.

“The industrial sector is critical to confronting the climate crisis, it’s responsible for nearly a third of domestic greenhouse gas emissions today,” the White House said.

The adoption of hydrogen could help cut emissions in a wide range of sectors, especially in hard-to-decarbonize industries like steel making, the announcement said.

The White House said its clean manufacturing push would build on spending the US is set to take from an infrastructure investment package to help cut climate pollution, grow the economy, and create jobs.

“... the president’s Build Back Better agenda will continue to supercharge clean manufacturing and American competitiveness for years to come, as it supports low-carbon processes throughout our industrial base; spines long-term investments in our clean steel, cement, and aluminum industries; and grows domestic production of electric vehicles, wind turbines, solar panels, and more,” said the statement.

Mrs. Fiona Harrington
Mrs. Fiona Harrington
Wealth Management Specialist
PROFILE
Subscribe Banner

Advisor's Gateway is a free subscription service that provides market insights, analysis, and investment tips. This resource, crafted by professionals to empower informed decision-making, keeps you ahead. It’s the perfect tool to enhance financial strategies.