The steel industry has endorsed a global approach as the best way for steel to help address climate change, The International Iron and Steel Institute reports.

At the annual meeting of the International Iron and Steel Institute (IISI) in Berlin, the Board of Directors approved the next stage in the establishment of a Global Sectoral Approach for steel.

The organization says it will collect and report the carbon dioxide emissions data of steel plants in all the major steel producing countries. Establishment of the data on a common and consistent basis is the starting point for the setting of commitments post-2012 on a national or regional basis, according to the organization.

The steel industry in North America, Western Europe and Japan has reduced energy consumption per unit of production by 49 percent in the last 25 years, according to an IISI statement. The steel industry now accounts for three percent to four percent of global man-made greenhouse gas emissions. Over 90 percent of steel industry emissions come from iron production in nine countries or regions: Brazil, China, EU-27, India, Japan, Korea, Russia, Ukraine and the USA.

“Cap and trade regional policies such as those currently used in the EU are not effective in reducing carbon dioxide emissions,” said Philippe Varin, IISI Executive Committee Member and CEO, Corus. “Constraining production from the best emission performing plants is not the solution for a globally competitive industry such as steel. An effective approach for the steel industry requires the participation of all major steel producing countries and a focus on improving emissions per unit of production.”

Carbon emissions between 2008-2012 would cost about 25 euros a tonne, Reuters reports Varin as saying. “If you assume that this could be as high as 40 euros after 2012 this could add 60 to 70 euros to a tonne of steel,” he said.