Climate Change: Steel Production Remains a Major Source of Greenhouse Gases

The global steel industry's persistent reliance on coal poses a significant threat to climate goals, as highlighted in a recent report by Global Energy Monitor. Despite growing awareness of environmental issues, the sector's emissions remain alarmingly high, contributing 11% to global greenhouse gases.

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319 million tonnes per year (mtpa) of capacity of coal-based blast furnaces have either been announced by the industry or are under construction

The report details how traditional blast furnaces, which use fossil coal, are the primary culprits. While "green" steel production methods, such as electric arc furnaces, are slowly gaining ground, their growth is marginal compared to the expansion of coal-dependent facilities. This trend is particularly concerning given the projected increase in global blast furnace capacity by 2035.

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green steel production capacity has only increased very slightly last year. Progress towards green iron production also remains very limited

Global Energy Monitor places particular emphasis on the roles of India and China, which are set to dominate the expansion of coal-based steel production. The NGO's call for these nations to transition to lower-emission technologies is crucial. Their decisions will profoundly impact the future trajectory of the steel industry and its contribution to climate change. The report suggests that with only a fraction of planned coal-based projects initiated, there remains a critical window for intervention and a shift towards more sustainable practices.

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the outlook remains bleak for the transition of steel away from fossil fuels