American Manufacturers Are Among the Cleanest in the World. Let’s prove it.
U.S. manufacturers have a compelling environmental story. American companies produce goods that emit 40% less carbon dioxide (CO2) than the global average for the same products. The American steel industry, for example, has the lowest CO₂ emissions per ton of steel produced of any of the major steel-producing countries and accounts for just 1-2% of U.S. greenhouse gas (GHG) emissions. Globally, the steel industry emits around 8% of total world GHG emissions.
The American steel industry, and the manufacturing sector as a whole, have made significant investments in cleaner and more sustainable production processes. With these innovative technologies, we are committed to further reducing our environmental impact. But unless companies overseas do the same, American manufacturing’s commitment to sustainability will put us at a disadvantage. This is because the U.S.’ higher environmental performance comes with costs that many of our competitors are exploiting to capture global market share.
For example, the U.S. economy is three times more carbon efficient than China’s and up to 400% more efficient in certain steel segments—yet China continues to massively overproduce higher polluting products that flood global markets. And the same pattern is now taking place in Southeast Asia as Chinese steelmakers build high-carbon emitting mills in Indonesia and other nations.
To counter this threat, we need to level the playing field when it comes to environmental standards. But today the U.S. government and policymakers do not have the data needed to make the case for action. We need policies to demonstrate the current imbalance in emissions so the high polluters from overseas can be held accountable.
The Senate Environment and Public Works Committee will consider one such policy initiative on January 18. The bipartisan “Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency” (PROVE IT) Act would do as its name implies by creating an official source to verify the superior carbon efficiency of vital American industries, like steel. Already, it’s achieved a rare feat by garnering support from both parties. Senators Coons (D-DE), Cramer (R-ND), King (I-ME), Heinrich (D-MN), Murkowski (R-AK), Whitehouse (D-RI), Graham (R-SC), Hickenlooper (D-CO), Cassidy (R-LA), Durbin (D-IL) and Boozman (R-AR) are all cosponsors.
Specifically, the bill authorizes a comprehensive Energy Department study to compare the GHG emissions intensity of certain goods, including steel, produced in the U.S. to the emissions intensity of those same goods produced in other countries. The information from this study will be essential to inform future legislation to secure the competitiveness of U.S. manufacturers and increase the accountability of more GHG-intensive foreign producers.
This data will also help U.S. manufacturers make important new investments at home. U.S. companies continue to face myriad regulatory costs and government delays in permitting new projects. Data that proves solid environmental performance will bolster arguments for permitting new U.S. investments, particularly when climate impact is a concern. When our cleaner production displaces dirtier production overseas, the environment and the U.S. economy win.
The PROVE IT Act will help demonstrate that policies in support of U.S. manufacturers are also policies that lower global emissions. But the clock is ticking. Without data, we risk handing control of our narrative—and our economic success—to foreign governments.
Kevin Dempsey is the President and CEO of the American Iron and Steel Institute.
