Delays in green steel projects threaten global decarbonization goals

Steel industry associations warn that increasing delays to green steel projects and insufficient government support are jeopardizing efforts to decarbonize the global steel industry, according to a Reuters report.

Speaking at an industry meeting in Singapore, representatives of the World Steel Association (worldsteel) said that about half of the planned green steel projects in the world have already been postponed. According to the association, governments have so far allocated only about $20 billion for steel decarbonization, well below the estimated $1.5 trillion needed to transform the global steel sector.

Problems with financing and demand persist

Industry executives noted that efforts to reduce emissions are moving more slowly than expected and are likely to continue to face obstacles unless governments provide significantly more support or customers are willing to pay more for low-carbon steel products.

Worldsteel emphasized that steel production accounts for approximately 7-9 percent of global greenhouse gas emissions, making the decarbonization of the sector an important component of broader climate goals.

However, Shaoliang Zhong, deputy secretary general of the association, said that the current project pipeline is expected to supply only about 70 million tons of green steel per year by the end of the decade, compared with global steel production of about 2 billion