Steel

A green future for steel

Steel is the world’s third most-used material after cement and timber, with nearly two billion tonnes produced annually. However, its energy-intensive production significantly contributes to global greenhouse gas (GHG) emissions. 

The Steel Criteria define the standards that steel production facilities and projects must meet to achieve Climate Bonds Certification. These criteria also allow companies on credible transition pathways to issue transition-labelled debt, promoting low-carbon steel manufacturing. 
 

What the Steel Criteria cover
 

The Criteria apply to investments in specific emissions-reduction projects and entire facilities involved in steel or iron production. 
  
Eligible facilities include: 

• Integrated steelmaking plants. 
• Scrap-based Electric Arc Furnace (EAF) facilities. 
• Direct Reduced Iron (DRI)-EAF production lines. 
• Standalone DRI facilities. 

The focus is on core processes like Blast Furnace (BF), DRI, or EAF-based steel production. 

Excluded activities: 

• Mining and facilities solely producing raw materials (e.g., coke, iron ore pellets, lime). 
• Downstream activities such as rolling and finishing. 

These exclusions ensure the criteria remain focused on iron and steel production processes, where emissions reductions can be most impactful.  
 

Why develop Steel Criteria?
 

The Steel Criteria aim to: 

• Guide investors toward credible, low-carbon transition activities in the steel sector. 
• Encourage facility upgrades to reduce emissions. 
• Help policymakers set effective regulations and incentives for decarbonising steel production. 
• Support governments in achieving their climate goals. 

By providing clear standards, the Steel Criteria drive meaningful investments in sustainable steel production, supporting the industry’s transition to a low-carbon future.