# Embodied energy trade: Impact on the biosphere

Why coal-powered smelting is the biggest hidden harm

Source page: https://www.materialinsights.org/energy/e_embodied/biosphere/

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](https://think.ing.com/articles/green-aluminium-bundle-understanding-aluminiums-emissions) Steel share of global CO2 about 11%^[9](https://rmi.org/green-iron-corridors-a-new-way-to-transform-the-steel-business/) Steel made via coal-based blast furnaces about 70% of world production^[10](https://steelwatch.org/steelwatch-explainers/steelwatch-explainer-why-green-iron-trade-will-catalyse-steel-industry-decarbonisation/) Food lost or wasted about one third of food produced^[12](https://www.fao.org/energy/resources/facts-and-figures/en)

#### Effects over time

| Life affected | Short term | Medium term | Long term |
|---|---|---|---|
| **Humans**^[1](https://think.ing.com/articles/green-aluminium-bundle-understanding-aluminiums-emissions) | Little 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. |
| **Animals**^[15](https://engine.online/news/wind-assisted-propulsion-fleet-crosses-100-vessel-mark-iwsa-7c37) | Little evidence of effect. | Little evidence of effect from the trade itself; ship emissions fall where wind assistance is used. | Little evidence of effect. |
| **Plants**^[12](https://www.fao.org/energy/resources/facts-and-figures/en) | Little evidence of effect. | Little evidence of effect. | Little evidence of effect. |
| **Fungi and soil life**^[12](https://www.fao.org/energy/resources/facts-and-figures/en) | Little evidence of effect. | Little evidence of effect. | Little evidence of effect. |
| **Ecosystems**^[12](https://www.fao.org/energy/resources/facts-and-figures/en)^[9](https://rmi.org/green-iron-corridors-a-new-way-to-transform-the-steel-business/)^[10](https://steelwatch.org/steelwatch-explainers/steelwatch-explainer-why-green-iron-trade-will-catalyse-steel-industry-decarbonisation/) | Little 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)](https://think.ing.com/articles/green-aluminium-bundle-understanding-aluminiums-emissions) ING Think, 2024
2. [Green iron corridors: a new way to transform the steel business](https://rmi.org/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](https://steelwatch.org/steelwatch-explainers/steelwatch-explainer-why-green-iron-trade-will-catalyse-steel-industry-decarbonisation/) SteelWatch, 2025
4. [Energy: facts and figures](https://www.fao.org/energy/resources/facts-and-figures/en) FAO, 2025
5. [Wind-assisted propulsion fleet crosses 100-vessel mark (International Windship Association data)](https://engine.online/news/wind-assisted-propulsion-fleet-crosses-100-vessel-mark-iwsa-7c37) Engine Online, 2026

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_embodied/index.md)
- [Overview](https://www.materialinsights.org/energy/e_embodied/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_embodied/correlation/index.md)
- [How it works](https://www.materialinsights.org/energy/e_embodied/explain/index.md)
- [Efficiency and losses](https://www.materialinsights.org/energy/e_embodied/efficiency/index.md)
- [Technology advances](https://www.materialinsights.org/energy/e_embodied/advances/index.md)
- [Value chain](https://www.materialinsights.org/energy/e_embodied/valuechain/index.md)
- [Geopolitics and regulation](https://www.materialinsights.org/energy/e_embodied/geopolitics/index.md)
- [Unit economics](https://www.materialinsights.org/energy/e_embodied/economics/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_embodied/links/index.md)