Steel

Long-term emissions reduction solutions include direct reduced iron in electric arc furnaces and increased scrap steel use; short-term solutions include the use of carbon capture.

Performance summary

– The industry has seen an increase in emission intensity by 0.6%²⁹⁴ in the 2019-2023 period. This is mainly driven by an increase in production in regions that heavily rely on blast furnaces, which are high in emissions intensity.

– Steel production saw a marginal increase by 0.1% in 2023 vs. 2022.²⁹⁵

– In 2022, the energy mix for steel production consisted of 73% coal, 14% electricity, 8% natural gas, 1% oil and 3% others, including bioenergy.²⁹⁶

– The planned capacity of BF-BOF went from 64.5% to 64%,²⁹⁷ and EAF from 32% to 43%, from 2022 to 2023, indicating a move towards cleaner technology.²⁹⁸

Future emissions trajectory

– The industry targets a 45% reduction in intensity for primary steel and a 65% reduction for secondary steel by 2030, and net-zero emissions by 2050.²⁹⁹

– In total, 77% of large publicly traded steel companies consider climate change in their decision-making processes.³⁰⁰

Readiness key takeaways

Sector priorities

Note: This page presents a condensed summary of the sector’s performance, for a complete view, including on the sector’s readiness for the energy transition, please view the sector PDF here.