Pedal to the Metal

The report finds that the global iron and steel industry is facing a 'lock-in' crisis due to continued investment in coal-based blast furnace capacity, particularly in India and China. While electric arc furnace (EAF) capacity is increasing, green hydrogen-based direct reduced iron (DRI) remains a critical bottleneck, with only 2% of operating DRI capacity using green hydrogen. India is currently the primary driver of global steelmaking development, accounting for 42% of developing capacity, much of which is coal-based. China maintains the largest operating capacity, but 94% of its blast furnace capacity lacks a retirement plan. The report warns that relining existing blast furnaces locks in emissions for 15–20 years, threatening global climate goals as the sector accounts for 11% of global CO2 emissions.

• The global iron and steel industry is experiencing a 'lock-in' of carbon emissions through the relining of 80 mtpa of existing blast furnace (BF) capacity, which typically signals an operational lifespan of 15–20 years.
• India has become the leading driver of global steelmaking development, representing 42% (357 mtpa) of all developing capacity and 62% of all basic oxygen furnace (BOF) capacity currently in development worldwide.
• China is the global leader in operating capacity, but the transition is hindered by legacy assets; approximately 94% of its blast furnace capacity does not have a retirement plan.
• Despite the importance of green hydrogen for decarbonization, it remains a major bottleneck, with only 2% (4 mtpa) of operating DRI capacity using green hydrogen as a primary reductant.
• Electric arc furnace (EAF) capacity is growing, increasing its share of global operating capacity by 1% in the last year to 34%, and now represents 71% of projects that have broken ground.

APA

Grigsby-Schulte, A. (2026). Pedal to the Metal. Global Energy Monitor. https://globalenergymonitor.org/research/pedal-metal-2026

Chicago

Grigsby-Schulte, Astrid. Pedal to the Metal. Global Energy Monitor, 2026. https://globalenergymonitor.org/research/pedal-metal-2026.

Wikipedia

{{cite report |last1=Grigsby-Schulte |first1=Astrid |title=Pedal to the Metal |publisher=Global Energy Monitor |date=29 May 2026 |url=https://globalenergymonitor.org/research/pedal-metal-2026 |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{grigsbyschulte2026pedal, author = {Grigsby-Schulte, Astrid}, title = {{Pedal to the Metal}}, institution = {Global Energy Monitor}, year = {2026}, month = may, url = {https://globalenergymonitor.org/research/pedal-metal-2026}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }