Steel is all around us – in buildings, transport, clean energy infrastructure, and defense. But steel production also accounts for around 7% of global greenhouse gas emissions. That is more than the total emissions of all 27 EU member states combined.
Europe’s steel plants are approaching a major reinvestment cycle. Decisions taken in this decade will shape emissions, competitiveness, and industrial resilience well beyond 2040.
Our new policy brief focuses on ironmaking – the most emissions-intensive step in the steel value chain. Decarbonizing this process is essential not only for meeting climate targets, but also for strengthening Europe’s industrial base in a context of volatile fossil fuel prices and geopolitical uncertainty.
We identify six priority actions:
- Set a clear trajectory to phase out coal in ironmaking
- Ensure access to affordable clean electricity
- Strategically redesign global green steel value chains
- Create lead markets and trusted standards for green steel
- Invest in innovative primary steelmaking pathways that circumvent hydrogen
- Improve scrap quality and circularity
Policymakers will have the opportunity to engage directly with industrial decarbonization challenges at the Future Cleantech Festival in Remscheid this June.