Transforming Steel

Transformation of the steel industry | critical factors
  • Direct iron reduction with green hydrogen
  • Carbon capture and storage (CCS)
  • Additional gains will come from direct iron reduction with natural gas (with CCS on remaining emissions), and increased scrap use

Global burden of steel production

Industry-endorsed strategy

In 2022, we developed a Steel Sector Transition Strategy in collaboration with a diverse set of industry leaders. This provides a shared vision for a clean steel future, modelling of pathways, real economy milestones and the industry, policy and finance actions required to get there. Assumptions have not been updated since publication, but the STS still represents a quantitative reference point.

Sector Transition Strategy documents

Report | Making net-zero steel possible

Industry-backed 1.5°C aligned transition strategy download

Executive summary download

Infographics summary download

Pathways to net zero interactive modelling
Model code github

Further reading | Steel

China is one of a number of countries across the East Asian region where the steel sector is facing a pivotal moment, this is the second in a series of reports where we examine the opportunities for countries to reinforce the foundations of their industrial strength.

Steel’s transformation | China report 2026 | English download

共建绿色钢铁供应链 | China report 2026 | Chinese download

  • 15 businesses and organisations have written to the EU’s co-legislators
  • Signatories call for increased ambition to attract new investment
  • Europe has a pipeline of 100+ clean projects – estimated €85 billion in investment potential – needing market certainty to reach FID
  • IAA’s current requirements for aluminium, concrete and steel – sit below the capacity already in development

Our report: Principles and Guardrails for Credible Mass Balance Claims gives buyers, producers and standard setters a clear framework for designing and assessing credible mass balance claims.

More to Explore

Building Latin America’s first industrial-scale low-carbon fertiliser plant, ATOME Villeta will use Paraguay’s hydropower to produce green CAN fertiliser with a 10-year Yara offtake.

Read the full case study on our Build Clean Now campaign website
Bright Spot | Atome Villeta

In this month’s edition of Signal, hear our highlights from CEM16 in Busan and discover the synergies between green hydrogen and ammonia

Faustine will lead MPP’s growing portfolio of activities to unlock deep decarbonisation projects in industry, including live programmes in the US and Europe. The move signals a step-change for the organisation, which was founded in 2019 and recently established as a fully independent not-for-profit entity. With the Board’s backing, Faustine will lead a new strategic phase centered on supporting and unlocking decarbonisation projects across heavy industry and transport sectors, which together account for more than 30% of all global carbon emissions.

For the aviation sector, the transition to sustainable fuels is just getting started, but it is one of the areas where progress is fastest, with eight projects reaching FID in the past 18 months.

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