Local and foreign steel industry companies have pledged billions of dollars in projects that could elevate the region’s countries as centers for green steel manufacturing.

Steel production accounts for between 7% and 9% of global carbon dioxide emissions, making it a challenging industry to decarbonize. With strong growth expected in global steel production in the coming decades, changes must be implemented to make the steel industry align with the United Nations’ Paris Agreement goal of limiting global warming to 1.5 degrees Celsius.

The Middle East and North Africa region represents only 5% of global steel production, according to “Meed.” Despite this low market share, steel industry companies in the region – especially in the Gulf – have committed to investing billions of dollars in steel projects that could incorporate most proven clean technologies.

The need for the international steel industry to reduce carbon dioxide emissions and greenhouse gases took center stage at the United Nations Climate Change Conference (COP28) in Dubai last December. Around 35 companies and six industrial associations, including the World Steel Association, endorsed the Industrial Transformation Accelerator initiative, aiming to expand the implementation and delivery of carbon removal in the steel, aluminum, cement, transportation, and energy sectors.

There are several motivations for decarbonizing steel, including heat generation electrification, energy efficiency improvements, and increased use of steel scrap. However, to achieve net-zero emissions, further steps are needed to address emissions associated with coal’s role as a reducing agent in iron production. Leading technologies that can achieve this include direct hydrogen reduction to replace coal, carbon capture, utilization, and storage, and production processes based on electrolysis or green hydrogen support.