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PEDAL TO THE METAL
The global steel sector, responsible for 11% of CO2 emissions, remains heavily reliant on carbon-intensive blast furnace-basic oxygen furnace (BF-BOF) pathways. While over 75% of global capacity is now covered by net-zero pledges, the report warns of significant stranded asset risks—estimated between 47 and 70 billion USD—due to the continued construction of BF-BOF plants. The analysis emphasizes a transition toward electric arc furnaces (EAF), green hydrogen-based direct reduced iron (DRI), and carbon capture, utilization, and storage (CCUS), while leveraging existing global overcapacity to retire inefficient plants.
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Document type: Report