In China, a small boost to low-emissions steelmaking can mean big cuts to its carbon footprint

China's steel industry is dominated by emissions-intensive BF-BOF technology, which accounted for almost 94% of industry emissions in 2022. While the Ministry of Industry and Information Technology (MIIT) set a target of 15% EAF production by 2025, the document argues that China already possesses the capacity (151 mtpa) to meet this goal if utilization rates are increased. Achieving a more ambitious 20% EAF target by 2025 could reduce industry emissions by 217 mtpa CO2, nearly 11% of 2022 levels. Key obstacles to this transition include scrap steel distribution and power supply stability, though the growth of scrap availability and offshore wind energy provides opportunities for decarbonization.

• China's steel industry is heavily reliant on the coal-based blast furnace-basic oxygen furnace (BF-BOF) route, which is significantly more carbon-intensive than the electric arc furnace (EAF) route. BF-BOF steel has an emissions intensity of approximately 2.1 tonnes CO2 per tonne of steel, compared to 1.3 tonnes CO2 for EAF steel.
• In 2022, BF-BOF production was the primary driver of the industry's carbon footprint, accounting for nearly 94% of total emissions.
• China has the existing capacity to meet its target of 15% EAF production by 2025 without further installation, provided it increases the utilization rates of its EAFs. As of January 2024, China has 151 mtpa of operating EAF capacity, which exceeds the 143 mtpa required to hit the 15% goal based on a projected 2025 production of 950 mtpa.
• The Ministry of Industry and Information Technology (MIIT) reduced its ambition for the industry by removing a goal of 20% EAF production by 2025 from the final 2022 version of its report, settling instead on a 15% target.
• Reaching a 20% EAF production share by 2025 would result in a total emissions reduction of 217 mtpa CO2, representing nearly 11% of 2022 levels. This would require adding at least 39 mtpa of EAF capacity, though current plans (adding 48 mtpa while closing 21 mtpa) result in a net increase of approximately 27 mtpa.
• While scrap steel availability is often cited as a constraint, China had 260 million tonnes available in 2022, more than the industry was using. Projections suggest scrap resources will grow to 320 million tonnes by 2025, 390 million tonnes by 2030, and 500 million tonnes by 2050.
• China's hydrogen-based direct reduced iron (DRI) industry is hindered by unstable energy supplies and power shortages rather than a lack of hydrogen, as green hydrogen facilities currently operate at less than 10% capacity on average.

APA

Global Energy Monitor (2024). In China, a small boost to low-emissions steelmaking can mean big cuts to its carbon footprint. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-China-steel-brief-March-2024_11.pdf

Chicago

Global Energy Monitor. In China, a small boost to low-emissions steelmaking can mean big cuts to its carbon footprint. 2024. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-China-steel-brief-March-2024_11.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=In China, a small boost to low-emissions steelmaking can mean big cuts to its carbon footprint |date=March 2024 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-China-steel-brief-March-2024_11.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitor2024china, author = {{Global Energy Monitor}}, title = {{In China, a small boost to low-emissions steelmaking can mean big cuts to its carbon footprint}}, institution = {Global Energy Monitor}, year = {2024}, month = mar, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-China-steel-brief-March-2024_11.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }