The 2020s offers a perfect opportunity for the steel industry to transition in Europe. Blast furnaces have a life span of decades and coming investment cycles will lock plants into a specific production process. As the next investment cycle will not happen for at least two decades, failing to transition the steel sector could threaten government pledges to reach net zero by mid- century. Policymakers must guide industry and investors onto a climate-aligned pathway for steel. Green hydrogen and electrification, together with carbon capture use and/or storage technologies, present an opportunity for the steel industry to transition.
This paper provides analysis of the climate impact of the steel sector in the EU, and sets out key policy recommendations to accelerate its transition into the green economy.