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Decarbonizing global steel production

  • Peng Wang
  • , Yi Long Yin
  • , Zhenxi Li
  • , Chris Bataille
  • , Daniel M. Franks
  • , Takuma Watari
  • , Max Åhman
  • , Lars J. Nilsson
  • , Xiao Dong Ma
  • , Jing Meng
  • , Qi Zhang
  • , Timothy M. Smith
  • , Yi Yang

Research output: Contribution to journalReview articlepeer-review

Abstract

The steel industry emits 2,400–2,713 Mt CO2 and 12 Mt of fugitive methane globally each year, yet progress towards decarbonization has been limited. In this Review, we examine the potential, feasibility and barriers to decarbonization of the steel sector. The blast furnace–basic oxygen furnace (BF–BOF) accounts for ~72% of global steel production and has the highest carbon emission intensity of existing production routes (~2.3 t CO2 tsteel−1). Conversely, the scrap-based electric arc furnace (EAF) route, which contributes ~23%, has the lowest carbon intensity (~0.68 t CO2 tsteel−1). China, Japan and others rely heavily on BF–BOF whereas the EAF route is favoured in a limited number of nations such as the USA. Established process-level solutions, such as enhanced energy efficiency and waste heat recovery, can reduce carbon intensities by up to 20%. Whereas reductions of over 80% can be achieved with emerging hydrogen-based and electrolysis-based technologies. For example, the carbon intensity of steel produced with hydrogen-based iron reduction technologies is ~0.4 t CO2 tsteel−1 at a cost of over US$800 tsteel−1 (compared to ~US$450 tsteel−1 for BF–BOF). These high costs, together with regional resource limitations and low technical readiness, limit widespread near-term deployment. System-wide measures, such as material efficiency, circular economy and industrial symbiosis, could contribute 30–65% of the required total emissions reduction in line with the 1.5°C target. Future work should prioritize implementing a coordinated, multi-scale approach that combines process-level innovations with system-wide strategies and region-specific policies.

Original languageEnglish (US)
Pages (from-to)374-391
Number of pages18
JournalNature Reviews Earth and Environment
Volume7
Issue number6
DOIs
StatePublished - Jun 2026

Bibliographical note

Publisher Copyright:
© Springer Nature Limited 2026.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 7 - Affordable and Clean Energy
    SDG 7 Affordable and Clean Energy
  2. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure
  3. SDG 12 - Responsible Consumption and Production
    SDG 12 Responsible Consumption and Production
  4. SDG 13 - Climate Action
    SDG 13 Climate Action

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