![]() But the supply of scrap is fundamentally limited by the rate at which steel-containing products like cars, buildings, and white goods reach end-of-life. The collection, sorting, and market for scrap is well executed, with a recycling rate between 80 and 90 percent. Roughly 70 percent of the steel made in the United States comes from this recycled scrap (known as secondary steel) and is produced in electric arc furnaces (EAFs, also known as mini-mills). The US steel industry claims one of the cleanest global emissions footprints due to its high recycling rate of scrap. This is a critical boost for US heavy industries, particularly the iron and steel sector, which need both regulatory and economic instruments to transition effectively. These incentives at the state and federal level (including the CHIPS and Science Act, the Infrastructure Investment and Jobs Act, and the Inflation Reduction Act) promise to slash emissions across key sectors, strengthen communities, and provide new development opportunities. In a big year for climate action, 2022 saw the United States double down on strategies and mechanisms to accelerate its economy toward achieving net zero. Achieving a net-zero US steel sector will require investments in new, low-emissions primary steel production.
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