# Green Steel: Innovative Pathways for Sustainable Industry Transformation

Green steel holds the key to eco-friendly transformation in foundation industries.

- **Source:** [Research Policy](https://www.sciencedirect.com/journal/research-policy)
- **Topic:** [Business](https://brifing.si/c/business)
- **Original article:** <https://www.sciencedirect.com/science/article/pii/S0048733326001320?dgcid=rss_sd_all>
- **On Brifing:** https://brifing.si/s/26bbc22e-7d8d-4097-8ad1-1fb31a413e1b

## What is Green Steel?

Green steel production methods can reduce carbon emissions by up to 90% compared to traditional steelmaking. By utilizing hydrogen-based reduction technologies, it eliminates dependence on fossil fuels. As of 2026, Europe has 12 large-scale green steel plants in planning. This method will play a pivotal role in achieving the steel industry's 2050 carbon neutrality goals.

## Why It Matters

The steel industry accounts for 7-9% of global carbon emissions. Traditional methods emit 1.8 tons of CO2 per ton of steel produced. Green steel represents a critical sectoral transformation for Paris Agreement targets. Experts predict the green steel market will reach $500 billion by 2030.

## Discontinuous Innovation Model

Research shows green steel technologies allow gradual transition without complete infrastructure overhaul. Hybrid production systems enable plants to start with 30-40% green production capacity. This approach reduces investment costs while facilitating transition until technology matures.

## Industry Pioneers

SSAB became the first company to produce commercial-scale green steel in 2026 through its HYBRIT project. ArcelorMittal announced a €2.3 billion green steel investment in Spain. In Turkey, Erdemir is planning a pilot green steel plant targeting 2028. These companies are leading the sector's transformation.

## Challenges and Opportunities

Green steel currently costs 20-30% more than conventional steel. However, carbon pricing mechanisms and green subsidies are expected to close this gap by 2030. Declining renewable energy costs will also make green hydrogen production economically viable.

## Policy Support

The EU will impose carbon tariffs on imported steel through CBAM. China allocated $15 billion for green steel production in its 14th Five-Year Plan. The US Inflation Reduction Act provides $100 per ton incentives for green steel producers.

## Supply Chain Impacts

Automotive and construction sectors lead in green steel demand. Volvo committed to using 100% green steel in all models from 2026. Construction firms gain extra LEED certification points for using green steel. This is rapidly transforming supply chains.

## Future Outlook

Green steel provides a model for sustainable transformation in foundation industries. Similar technologies can be adapted for cement and chemical sectors. The goal is for 50% of global steel production to use green methods by 2050. This transition will be a critical step in climate crisis mitigation.

## Sources covering this story

- https://www.sciencedirect.com/science/article/pii/S0048733326001320?dgcid=rss_sd_all — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._