To achieve the Paris Agreement goals, all sectors of the economy must rapidly decarbonise. Greater attention is now being paid to the so-called hard-to-abate sectors such as steel. This paper examines the policies required to accelerate the EU steel industry transition to net zero.
The 2020s offers a perfect opportunity for the steel industry to transition in Europe. 74% of EU steel blast furnace capacity needs reinvestment by 2030, and blast furnaces have a life span of decades. Coming investment cycles will lock plants into a specific production process. Policymakers must guide industry and investors onto a climate-aligned pathway for steel.
This paper provides analysis of the climate impact of the steel sector and sets out key policy recommendations to accelerate its transition into the green economy.