From ‘hard-to-abate’ to net-zero: Policy priorities for decarbonising steel by 2050

The document argues that the steel sector can be almost fully decarbonised by 2050 through a combination of hydrogen-based direct reduced iron (HDRI), carbon capture and storage (CCS), increased steel recycling, and material efficiency. It warns that to avoid stranded assets and catastrophic climate impacts, new blast furnaces without CCS must not be added and existing ones must not be relined after 2025. Policy interventions are required to provide clean electricity and green hydrogen, create lead markets, and implement carbon pricing, with a suggested price of around US$70 to avoid 1.3 Gt CO2 of emissions by 2030. International cooperation, such as the Glasgow Breakthrough on Steel, is highlighted as essential because demand growth is primarily driven by developing economies in Asia.

• Steelmaking can be nearly fully decarbonised by 2050 using a combination of retrofitting blast furnaces with carbon capture and storage (CCS), scaling hydrogen-based direct reduced iron (HDRI), increasing steel recycling, and improving steel use efficiency.
• To prevent the creation of stranded assets and lock-in of high emissions, the industry must stop adding new blast furnaces and relining existing ones without CCS by approximately 2025.
• Hydrogen-based technologies are central to net-zero scenarios, with the Mission Possible Partnership (MPP) projecting that 40–55% of primary steel production could use these technologies by 2050, requiring 35–55 Mt of green hydrogen annually.
• Policy-makers can significantly reduce emissions through carbon pricing; a price of approximately US$70 could avoid up to 1.3 Gt CO2 of steel emissions by 2030.
• The transition will require a massive increase in clean energy; in one 1.5°C scenario, electricity and hydrogen would account for 65% of global fuel consumption in the sector by 2050, with electricity use rising to 1,900 TWh.
• International collaboration is critical as demand growth is driven by developing and emerging economies in Asia. The Glasgow Breakthrough on Steel involves countries representing 32% of global production, including the EU, US, Japan, Korea, and India.

APA

Stockholm Environment Institute (n.d.). From ‘hard-to-abate’ to net-zero: Policy priorities for decarbonising steel by 2050. https://www.sei.org/wp-content/uploads/2021/11/cop26-steel-messages-20211103.pdf

Chicago

Stockholm Environment Institute. From ‘hard-to-abate’ to net-zero: Policy priorities for decarbonising steel by 2050. n.d. https://www.sei.org/wp-content/uploads/2021/11/cop26-steel-messages-20211103.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=From ‘hard-to-abate’ to net-zero: Policy priorities for decarbonising steel by 2050 |url=https://www.sei.org/wp-content/uploads/2021/11/cop26-steel-messages-20211103.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitutendfrom, author = {{Stockholm Environment Institute}}, title = {{From ‘hard-to-abate’ to net-zero: Policy priorities for decarbonising steel by 2050}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/wp-content/uploads/2021/11/cop26-steel-messages-20211103.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }