GEM: Coal-based steel investments threaten global decarbonization goals

According to the Global Energy Monitor (GEM) sixth annual report on the steel sector, continued investments in coal-based steel production threaten the global industry's shift to lower-emission production routes.

The report says that large-scale investments in blast furnace projects and lining replacement work continue to outweigh the planned decommissioning of old coal facilities.

Coal-based blast furnace capacity continues to expand

GEM reported that 319 million tons per year of coal-based blast furnace capacity has been announced or is currently under construction worldwide, an increase of five percent compared to the previous year. In addition, about 80 million tons of blast furnace capacity is tied to re-lining projects designed to extend the service life of existing facilities.

The report notes that the announced decommissioning covers only 141 million tons of the blast furnace's current capacity. As a result, global blast furnace capacity is projected to increase by 88 million tons by 2035, underscoring the continued dominance of coal-intensive steel production technologies.

The steel industry remains the main source of emissions

According to GEM, about 88 percent of emissions in the steel sector come from coal-fired production routes. The steel industry accounts for approximately 11 percent of global carbon emissions, underscoring the importance of the sector in the global