LeadIT Green Steel Tracker shows top 50 producers lag on emission targets.

San Francisco, Stockholm  —  New plans for coal-based steelmaking capacity are outpacing greener primary steel production methods with only a third of the world’s top 50 producers having announced targets to reach net zero by mid-century, finds a new report from Global Energy Monitor and the LeadIT Secretariat.

The report finds that investments in primary green iron and steel projects are growing, but mostly in developed markets and not fast enough to outpace emissions-intensive technologies. Currently planned coal-based blast furnace capacity worldwide totals 208.2 million tonnes per annum (Mtpa), 2.5 greater than the 83.6 Mtpa in planned primary green iron and steel capacity.

The steel sector accounts for an estimated 7 to 9% of direct global greenhouse gas emissions, and the International Energy Agency has said that CO2 emissions from heavy industries need to drop 93% to reach net zero emissions by 2050.

Yet, data from the LeadIT Green Steel Tracker  shows that only 17 of the largest 50 steel producers have publicly committed to achieving net zero by mid-century, despite these 50 producers being responsible for more than 60% of the sector’s emissions.

Data also shows that only two of 50 producers have included Scope 3 emissions calculations in their net zero goals. Scope 3 emissions play a significant role in steelmaking and can account for well over 40% of overall emissions from the sector. Scope 3 emissions include those produced during material extraction, preparation and processing, transportation, as well as fuel and energy-related emissions not covered under Scope 1 or 2. Scope 1 and 2 emissions include direct emissions from a company’s own furnaces, vehicles, and chemical processes, as well as the purchase of electricity.

Caitlin Swalec, Program Director for Heavy Industry, Global Energy Monitor, said, “The biggest steel producers are also the biggest culprits in terms of emissions. They must swap out coal-based processes for cleaner ones. But it’s impossible to score if you don’t know where the goalposts are. Ambitious and transparent targets are critical.”

Eileen Torres Morales, Analyst, Leadership Group for Industry Transition Secretariat, said,

“The gap in announced primary green steel projects between the Global North and South underscores the importance of global partnerships to improve the business case and mobilize financing for low-carbon steel investments in all countries, including developing and emerging markets set for significant growth in the steel sector. Creating a level global playing field is also essential to support companies to commit to tangible, time-bound emissions reductions.”

Achieving Net Zero 2050 emissions targets for the steel sector globally will require economic and policy tools that help to reduce investment risks, technology co-development and knowledge-sharing, green public procurement agreements as well as economic instruments like subsidies, financing, and tax incentives to support green steel producers to compete with unmitigated coal-based steel production.