Leaders in the global steel sector are warning that progress toward producing low-carbon “green steel” is moving too slowly to meet international climate goals. The steel industry is responsible for roughly 7–9% of global carbon dioxide emissions, making it one of the world’s most carbon-intensive industries. While companies have announced plans to replace coal-fired blast furnaces with cleaner technologies such as hydrogen-based production and electric arc furnaces powered by renewable energy, many projects are struggling due to high costs, limited infrastructure, and uncertain market demand for greener steel products.
Industry experts say stronger government support, clearer policies, and greater investment are needed to accelerate the transition. Producing green steel currently costs significantly more than conventional steel, creating challenges for manufacturers competing in global markets. At the same time, supplies of renewable electricity and green hydrogen remain limited in many regions. Without faster deployment of clean technologies and financial incentives to encourage adoption, industry groups warn that emissions from steel production could remain high for decades, making it harder for countries to achieve their net-zero climate commitments and slowing broader efforts to decarbonize construction, transportation, and manufacturing sectors. More