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 home to 1 in 2 of the world’s clean industrial plants
• A record 36 FIDs in 12 months
• A step change for the new industrial sunbelt as capital hits six projects
• 1,027 projects in development, worth $4.8 trillion in investment potential
• Sustainable aviation fuel (SAF) accounts for one in three major investments

China and a growing group of renewables-rich emerging economies are attracting an increasing share of investment in clean industry, according to the latest findings from Mission Possible Partnership’s Global Project Tracker, supported by the Industrial Transition Accelerator (ITA). Clean industry, powered by renewable energy, is redrawing the world’s industrial map as projects move from the drawing board to construction.

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

More to Explore

  • The European Commission is deliberating a revision of the European Trading System – the flagship instrument of climate policy
  • Lobby groups are pushing hard to extend the free credit allowances and push back the 2040 horizon. This is a crucial juncture
  • Europe’s resilience and competitiveness are at stake
  • Europe’s growing ETS revenue can be redirected to mechanism that create demand certainty and unlock clean industrial investment

Green hydrogen and ammonia are essential for the transformation to clean industry and the Chifeng Green Hydrogen Net Zero Industrial Park is leading the way.

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

New ‘industrial sunbelt’ set to overtake the world’s biggest economies in clean industry race.

Download report | Clean industry: transformational trends

Mapping the pipeline of green industrial projects and assessing their progress toward 2030 target

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