A Fork in the Road for the global steel sector

The global steel sector has reached a fork in the road. Before 2030, 71% of existing coal-based blast furnaces (1090 Mt) will reach the end of its lifetime and require major reinvestment. As the next investment cycle won’t happen for another two decades, this means that this decade provides the critical opportunity for steel to transition to a more sustainable sector. 

This policy paper included as part of the Climate Bonds Steel Package provides guidance to policymakers and regulators about how to guide industry and investors onto a climate-aligned pathway for steel.

Cementing the Global Net Zero Transition

Cement production accounts for around 7% of global emissions and it is the second largest global industrial emitter after steel.4 Achieving the goals of the Paris Agreement will be impossible without decarbonising sectors such as cement and yet, the carbon intensity of global cement production has only slightly decreased in recent decades, and it is significantly behind a Paris-aligned pathway.