A window of opportunity: five ways IFIs can support the transition to green steel in emerging and developing economies

The policy brief highlights a critical window in the 2020s for emerging economies to leapfrog to green steel production, as these regions are expected to see the largest increases in steel capacity by 2030. It proposes five ways IFIs can intervene: acting as knowledge partners for policy frameworks, supporting green hydrogen roadmaps, de-risking investments for first movers and SMEs, utilizing green procurement in their own operations, and scaling up scrap-based secondary steel production and circular business models.

• Emerging economies are experiencing a geographic shift in global steel production, with India, Nigeria, Pakistan, and Indonesia expected to see the largest increases in production by 2030. However, these regions are largely planning high-carbon capacity additions, while most low-carbon primary production projects are located in China and high-income countries.
• The 2020s represent a vital window to accelerate the transition to green steel to prevent the installation of high-polluting assets that would remain in use for 15 to 25 years. This is urgent because the steel sector is responsible for 11% of global CO2 emissions.
• IFIs can support the transition through five primary channels: serving as knowledge partners for policy, facilitating green hydrogen roadmaps, providing de-risking finance for first movers and SMEs (including utility-scale renewables), implementing green procurement standards in their own infrastructure projects, and promoting circular business models for scrap-based secondary steel production.
• To meet climate goals, global scrap-based steel production must increase from 25% to 50% of total production. This secondary production is identified as a particularly strong fit for IFI priorities due to its location in developing regions and clear climate benefits.

APA

Stockholm Environment Institute (n.d.). A window of opportunity: five ways IFIs can support the transition to green steel in emerging and developing economies. https://www.sei.org/wp-content/uploads/2022/11/2210b-ifis-and-steel-transition-leadit-cop-pb-201025-lhv1.pdf

Chicago

Stockholm Environment Institute. A window of opportunity: five ways IFIs can support the transition to green steel in emerging and developing economies. n.d. https://www.sei.org/wp-content/uploads/2022/11/2210b-ifis-and-steel-transition-leadit-cop-pb-201025-lhv1.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=A window of opportunity: five ways IFIs can support the transition to green steel in emerging and developing economies |url=https://www.sei.org/wp-content/uploads/2022/11/2210b-ifis-and-steel-transition-leadit-cop-pb-201025-lhv1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitutendwindow, author = {{Stockholm Environment Institute}}, title = {{A window of opportunity: five ways IFIs can support the transition to green steel in emerging and developing economies}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/wp-content/uploads/2022/11/2210b-ifis-and-steel-transition-leadit-cop-pb-201025-lhv1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }