Arab Steel Summit

Steel industry carbon emissions to drop nearly 30% by 2050 in the world

Carbon dioxide emissions from the world’s steel sector will fall 30% by 2050 compared with last year as more mills turns to less-polluting electric arc furnaces (EAF), consultancy Wood Mackenzie said.

Around 48% of global crude steel will be made via EAF by 2050, increasing from 30% in 2021 and almost on a par with traditional blast furnace steelmaking.

“Together with green hydrogen-based direct reduced iron (used in EAF), scrap use and adoption of carbon capture, utilisation and storage, steel industry’s carbon emissions can decline 30% from current levels by mid-century,” Malan Wu said in a release.

The steel sector discharged more than 3.3 billion tonnes of greenhouse gas last year, with more than 2 billion tonnes contributed by China, the world’s top metal producer.

It expects China to lead the cut, halving its carbon emissions in the coming three decades, though most of the reduction will be due to falling steel output.

China slashed some 30 million tonnes of crude steel production in 2021 from a year earlier to meet its carbon commitments and pledged another annual decline this year.

Tight scrap supply could threaten China’s decarbonisation, as hiking scrap prices will pressure steel margins in coming years, Woodmac’s Malan Wu told Reuters.

Mills in mature economies, such as Japan, South Korea, the European Union and the United States, will face an onus since they need to slash almost 50% of emissions while seeing their output no lower than current levels.

Steel emissions in India and Southeast Asia, however, are anticipated to double, as their production will triple but mainly through traditional, more polluting technologies, said Woodmac.

The consultancy also sees the ferrous sector launching hydrogen use as early as 2027, led by the European Union, and 10% of total steel output to be based on hydrogen by 2025.



Arab Steel Summit

Arab Iron and Steel Union

لوريم ايبسوم هو نموذج افتراضي يوضع في التصاميم لتعرض على العميل ليتصور طريقه وضع النصوص بالتصاميم سواء كانت تصاميم مطبوعه لوريم ايبسوم ليتصور طريقه لوريم ايبسوم.

About AISU

Arab Iron and Steel Union was established in Algeria in 1972 as the first Arab Union of the Arab countries to be founded under the Council of Economic Unity umbrella in the League of Arab States.

It is the first Arab organization to specialize in the iron and steel field, and its tasks fall within making plans aimed mainly at developing and growing the iron and steel industry in the Arab world.

Arab Iron and Steel Union comprises a wide range of multi-activity companies related to the iron and steel industry from the Arab countries.


92 Members

28 Board of Directors

17 Country

300.000 Employees

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