Material Insights · Understanding the Material World

Embodied energy trade: Impact on the biosphere

Why coal-powered smelting is the biggest hidden harm

What this tab covers Effects on human, animal, plant, fungal and microbial life and on whole ecosystems: in the short term (construction and early years), medium term (operating life) and long term (decommissioning and legacy).

Embodied energy trade moves environmental impact to where the energy is used. Coal-powered smelting is the largest harm; relocating heavy industry to hydro and renewables cuts it. Shipping and food waste add smaller, well-documented effects.

Aluminium sector emissions, 2022 about 1.11 Gt CO2e (15.1 t CO2e per tonne of primary aluminium)1 Steel share of global CO2 about 11%9 Steel made via coal-based blast furnaces about 70% of world production10 Food lost or wasted about one third of food produced12

Effects over time

Life affectedShort termMedium termLong term
Humans1Little evidence of effect from trade itself.The aluminium sector emitted about 1.11 Gt CO2e in 2022, much of it from coal power for electrolysis, mostly in China.Climate effects persist; relocation to clean power reduces them.
Animals15Little evidence of effect.Little evidence of effect from the trade itself; ship emissions fall where wind assistance is used.Little evidence of effect.
Plants12Little evidence of effect.Little evidence of effect.Little evidence of effect.
Fungi and soil life12Little evidence of effect.Little evidence of effect.Little evidence of effect.
Ecosystems12910Little evidence of effect.About one third of food produced is lost or wasted, with its embodied energy.Steel causes about 11% of global CO2; blast furnaces, which run on coal, underpin about 70% of world steel.

How the effects are reduced

Moving energy-intensive steps to places with clean power, and pricing embodied carbon at borders, are the main levers. Wind-assisted ships and efficient bulk carriers trim transport emissions. Cutting food waste saves the energy embodied along the whole chain.

Sources

  1. Green aluminium bundle: understanding aluminium's emissions (using IAI data) ING Think, 2024
  2. Green iron corridors: a new way to transform the steel business RMI, 2024
  3. SteelWatch explainer: why green iron trade will catalyse steel industry decarbonisation SteelWatch, 2025
  4. Energy: facts and figures FAO, 2025
  5. Wind-assisted propulsion fleet crosses 100-vessel mark (International Windship Association data) Engine Online, 2026