Sunsetting Coal in Steel Production

The report identifies coal-based primary steel production as a critical driver of global greenhouse gas emissions, contributing at least 7% of annual totals. It highlights that the blast furnace-basic oxygen furnace (BF-BOF) route is heavily dependent on metallurgical coal, with emissions underestimated by excluding coal mine methane. The document warns that 'business as usual' trajectories would consume nearly 23% of the remaining global carbon budget for 1.5°C by 2050. It argues that efficiency gains and carbon capture (CCUS) are insufficient or unviable in the near term. Instead, it advocates for a transition to green hydrogen-based direct reduced iron (DRI) and electric arc furnaces (EAF). The report establishes 'red lines' against relining existing blast furnaces or building new ones, particularly in OECD countries, to avoid locking in high-emission infrastructure for decades.

• The steel sector is a major global climate risk, contributing at least 7% of annual greenhouse gas emissions, with direct CO2 emissions doubling since 2000.
• Primary steel production via the blast furnace-basic oxygen furnace (BF-BOF) route is the primary driver of emissions; when coal mine methane is included, this route emits approximately 4.2 gigatons of CO2e per year, representing 90% of the industry's total emissions.
• A 'business as usual' trajectory for coal-based steel production would consume approximately 23% of the remaining global carbon budget available to limit warming to 1.5°C between 2023 and 2050.
• Technological mitigation via carbon capture, utilisation, and storage (CCUS) is currently not a credible near-to-mid-term solution for blast furnaces due to low capture rates, lack of commercial scale, and the difficulty of capturing emissions from multiple points on a site.
• The industry faces an imminent risk of carbon lock-in, as 71% of global blast furnaces will require relining by 2030, and there are over 125 new projects involving coal-based blast furnaces announced or under construction.
• Coal-based steel production causes significant non-climate harms, including air and water pollution; in South Korea, emissions from three specific plants were linked to approximately 506 premature deaths in 2021.
• The report proposes a transition to fossil-free steel using green hydrogen for direct reduction of iron (DRI) and renewable electricity for electric arc furnaces (EAF), citing projects like HYBRIT in Sweden and ArcelorMittal Dofasco in Canada as examples.

APA

Ashley, C., Gillespie, E., & Hansbrough, M. (2023). Sunsetting Coal in Steel Production. Global Energy Monitor. https://globalenergymonitor.org/sites/default/files/migration/reports/FINAL-SteelWatch_SunsettingCoalInSteel_June2023-sunday-25th-june_1.pdf

Chicago

Ashley, Caroline, Evan Gillespie, and Margaret Hansbrough. Sunsetting Coal in Steel Production. Global Energy Monitor, 2023. https://globalenergymonitor.org/sites/default/files/migration/reports/FINAL-SteelWatch_SunsettingCoalInSteel_June2023-sunday-25th-june_1.pdf.

Wikipedia

{{cite report |last1=Ashley |first1=Caroline |last2=Gillespie |first2=Evan |last3=Hansbrough |first3=Margaret |title=Sunsetting Coal in Steel Production |publisher=Global Energy Monitor |date=June 2023 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/FINAL-SteelWatch_SunsettingCoalInSteel_June2023-sunday-25th-june_1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ashley2023sunsetting, author = {Ashley, Caroline and Gillespie, Evan and Hansbrough, Margaret}, title = {{Sunsetting Coal in Steel Production}}, institution = {Global Energy Monitor}, year = {2023}, month = jun, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/FINAL-SteelWatch_SunsettingCoalInSteel_June2023-sunday-25th-june_1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }