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Geopolitics, global trade, and the fight against greenhouse gas emissions face a new conundrum: the U.S.-EU dispute over steel and aluminum tariffs.
The effort to combat overcapacity in the global steel industry may be at odds with the industry’s and governments’ ambitions to decarbonize, which would introduce more steel into the marketplace through the production of new low- or zero-carbon steel.
“You have a political priority to resolve overcapacity. When you start decarbonizing the sector, that’s going to be increasingly important. You’re going to end up with more overcapacity you’re going to manage. It’s going to go from important to crucial,” Thomas Koch Blank, a senior principal official for breakthrough technologies at the Rocky Mountain Institute think tank, told S&P…