AISI's Andrew Sharkey Testifies About "America's Climate and Security Act" Before Senate Committee

Emphasizing the American steel industry's global environmental leadership in recycling and carbon emissions reduction, AISI's President and CEO Andrew G. Sharkey, III, said that any climate change provisions developed must apply to foreign firms selling in the U.S. market or the consequences will be dire for the U.S. economy and the environment. He testified on November 13 before the Senate Committee on Environment and Public Works during a legislative hearing on "America's Climate Security Act of 2007" (S. 2191).

"The domestic industry is the most energy efficient in the world. Largely through recycling and investments in new technology, it has reduced energy use per ton of steel shipped by over 40 percent over the past 25 years," said Sharkey. "Reductions in carbon emissions per ton of steel shipped between 1990 and 2006 exceeded 29 percent."

"However," he said, "if climate change legislation fails to address the competitiveness issues vis-à-vis foreign products, it will have devastating consequences not only for the U.S. economy, but also for the environment. Not only will we export American jobs, greenhouse gas emissions will rise," added Sharkey.

AISI and its member companies believe that any competitiveness provision should: 1) apply simultaneously to domestic and foreign firms selling in the U.S. market; 2) use the same baseline periods; 3) not invited subsidies by foreign governments; and 4) not enable the Administration to waive the requirements on foreign manufacturers.

Even with such great environmental accomplishments highlighted, Sharkey said the industry is not standing still. In fact, the U.S. steel industry has embarked on aggressive research and development programs in order to develop the next generation of iron and steelmaking technologies that could drastically reduce or eliminate CO2 emissions.

With that being said, Sharkey noted the impact that climate change legislation will have on U.S. workers and manufacturers, if it is not approached in global terms.

For instance, since the year 2000, the United States has lost 3.5 million jobs. This is a statistic that will only grow if steel production and other manufacturing industries are encouraged to leave this market in favor of markets with lower environmental standards, such as China. As a result, jobs and production will not only move offshore, but overall worldwide greenhouse gas emissions will exponentially increase.

Sharkey concluded that AISI and the domestic steel industry want to work with the Committee to find reasonable and effective policies. It is through this collaboration that the U.S. will be able to find prudent means of addressing climate change that will allow the U.S. manufacturing base to remain viable and globally competitive. The Senate Committee on Environment and Public Works is planning committee markup of S.2191 on December 5-6. To view a copy of his full testimony, click here. For more information, contact Matt Davison.