Decarbonisation in the Global Steel Sector: Tracking the Progress

The global steel sector is not on track to halve CO2 emissions by 2030 or fully decarbonise by 2050. Analysis of the top 60 steel producers shows that while 26 have set targets, only 8 provide detailed implementation plans. Even if all existing targets are met, emission intensity reductions by 2050 (54-63%) would fall far short of the 90-100% reduction required for a 1.5°C trajectory. The report identifies three supply-side priorities: ending new blast furnace investments unless they support deep reductions, commercialising deep reduction technologies, and increasing scrap steel recycling.

• The global steel sector is not currently on a trajectory to halve CO2 emissions by 2030 or achieve full decarbonisation by 2050. Full implementation of existing company targets could reduce CO2 emissions by 7-10% in 2030 and 30-39% in 2050 compared to the baseline scenario, which corresponds to a 6-12% and 36-50% reduction from 2019 levels, respectively.
• There is a significant lack of transparency regarding how steel companies intend to meet their goals. Of the top 60 steel producers, 26 have set one or more GHG reduction targets, but only 8 of those provide details on the timeline and measures for achievement; 12 provide no information at all.
• Current company targets are insufficient to meet 1.5°C compatible benchmarks. While full implementation of targets could reduce emission intensity by 54-63% by 2050 relative to 2019, literature suggests a required decline of more than 90% and up to 100%.
• Three supply-side priorities are necessary for deep decarbonisation: stopping new blast furnace investments unless they allow for deep reductions, accelerating the commercialisation of deep reduction technologies for primary steel, and improving scrap steel recycling. Approximately 45% of current BF-BOF stock is nearing the end of its life, providing an opportunity to avoid technological lock-ins.

APA

NewClimate Institute (2022). Decarbonisation in the Global Steel Sector: Tracking the Progress. http://www.newclimate.org/resources/publications/decarbonisation-in-the-global-steel-sector-tracking-the-progress

Chicago

NewClimate Institute. Decarbonisation in the Global Steel Sector: Tracking the Progress. 2022. http://www.newclimate.org/resources/publications/decarbonisation-in-the-global-steel-sector-tracking-the-progress.

Wikipedia

{{cite report |author=NewClimate Institute |title=Decarbonisation in the Global Steel Sector: Tracking the Progress |date=2 December 2022 |url=http://www.newclimate.org/resources/publications/decarbonisation-in-the-global-steel-sector-tracking-the-progress |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2022decarbonisation, author = {{NewClimate Institute}}, title = {{Decarbonisation in the Global Steel Sector: Tracking the Progress}}, institution = {NewClimate Institute}, year = {2022}, month = dec, url = {http://www.newclimate.org/resources/publications/decarbonisation-in-the-global-steel-sector-tracking-the-progress}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }