Report: Green Steel, The Clear Path Forward

In 2022, global crude steel production was 1.9 gigatonnes (Gt) and contributed 5% to 7% of the anthropogenic CO2e generated annually in the world. On average, production of one metric tonne (mt) of steel generates nearly 2 mt CO2, and this footprint would need to decrease to 0.2 mt CO2 to limit global warming to 2℃ by 2050 stated in the 2015 Paris Agreement. Steel industry decarbonization discussions gained traction only 18 to 36 months ago, while historical innovation in iron and steelmaking focused on operational efficiencies and new types of steel. Decarbonization pathways clearly allow for the production of low carbon steel but are dependent on the adoption of renewable energy, green hydrogen, carbon capture, and scrap use. Research funding, government grants, and policy initiatives lag behind other cleantech sectors. However, recent US and European development of financial incentives are helping pivot the steel industry toward a lower CO2e future.