Steel Market: Worldsteel Issues Climate Action Policy

World Steel Association Issues CO2 Reduction Roadmap for Global Iron and Steel Industry 

BRUSSELS, Belgium — August 3, 2026 — The World Steel Association (worldsteel) has released a landmark policy paper on climate change and the production of iron and steel, presenting critical pathways and a call to action to reduce CO2 emissions across the global steel market. The publication arrives as the industry faces intensifying pressure to decarbonise operations in alignment with the Paris Agreement. 

The policy paper, published on August 3, 2026, focuses on mitigating emissions from iron and steel production, identifying the challenges ahead and the steps required to remove barriers and accelerate decarbonisation. It calls for coordinated action from the industry and its value chain, governments, and academic institutions. 

The document acknowledges that low-carbon steel production is expected to be significantly more expensive than conventional methods, with access to capital identified as a key structural barrier. Transition pathways highlighted include the shift from traditional blast furnace (BF) processes to direct reduced iron/electric arc furnace (DRI/EAF) routes, alongside the adoption of green hydrogen and renewable energy integration. 

According to Next Move Strategy Consulting, the global steel market is projected to reach USD 1.46 trillion by 2030, expanding at a CAGR of 3.8% during the 2025–2030 forecast period. The steel industry currently accounts for approximately 7% of global CO2 emissions, making decarbonisation a critical priority for the sector's long-term viability. 

Key Highlights: 

• The policy paper outlines actionable pathways to reduce CO2 emissions from iron and steel production, including hydrogen-based steelmaking, renewable energy integration, and carbon capture utilisation and storage (CCUS). 

• Low-carbon steel production is projected to be significantly more expensive than conventional methods, with access to capital cited as a primary structural barrier to accelerated decarbonisation. 

• The paper issues a coordinated call to action directed at the steel industry and its value chain, national governments, and academic institutions to collectively remove barriers and drive the green transition. 

• The World Steel Association represents members across every major steel-producing country, lending the policy paper broad global authority and relevance for industry stakeholders worldwide. 

Analyst Insight: 

According to analysts at Next Move Strategy Consulting, the release of worldsteel's climate policy paper marks a pivotal inflection point for the global steel industry, as regulatory frameworks and market-driven sustainability demands converge to accelerate the transition toward green steel production. NMSC analysts note that early adopters of low-carbon technologies — including green hydrogen-based direct reduction and electrochemical steelmaking — are positioned to gain a measurable competitive advantage, as sustainability-driven procurement standards become increasingly embedded across key end-use sectors such as automotive, construction, and aerospace and defense. 

Industry Outlook: 

The publication of worldsteel's climate policy paper reinforces the steel industry's institutional commitment to aligning with global net-zero targets. As governments intensify carbon-related regulatory frameworks and downstream industries increasingly mandate sustainable material sourcing, steel producers that proactively invest in decarbonisation technologies are expected to capture emerging market opportunities. The capital-intensive transition to green steel is anticipated to reshape competitive dynamics across the global steel value chain through 2030 and beyond, with regions such as the Middle East and North Africa — leveraging existing gas-based DRI infrastructure — positioned as potential leaders in the green iron and steel transition. 

Source: World Steel Association 

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Prepared By: Sanyukta Deb