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Report: China, India Control the Fate of Steel Decarbonization
05/11/2026 - The global steel industry’s decarbonization effort is slowly progressing, but whether the pace accelerates or stalls will largely depend on China and India.
According to a new report from the Global Energy Monitor, the two countries account for 86% of the coal-based mill projects now under development.
“The ball is in India and China’s court,” said Astrid Grigsby-Schulte, Global Energy Monitor’s project manager for its Global Iron and Steel Tracker.
“Pivoting to lower-emissions technologies and using existing EAF capacity more effectively are two immediate steps the countries can take to have a profound effect on the direction of the steel industry.”
Worldwide, there are 319 million metric tons of blast furnace capacity under development, and the persistence of coal-based steelmaking puts decarbonization at risk, the group said.
Additionally, there are 80 million metric tons of existing blast furnace capacity that is set for, or undergoing, a reline.
“The next ten years represent a vital window for the iron and steel industry. With the industry responsible for 11% of global CO2 emissions, the decisions made today regarding relining and new buildouts will determine the emissions profile for the next two decades,” the groups said.
“To meet global climate goals, the steel sector must move beyond incremental gains.”
“The ball is in India and China’s court,” said Astrid Grigsby-Schulte, Global Energy Monitor’s project manager for its Global Iron and Steel Tracker.
“Pivoting to lower-emissions technologies and using existing EAF capacity more effectively are two immediate steps the countries can take to have a profound effect on the direction of the steel industry.”
Worldwide, there are 319 million metric tons of blast furnace capacity under development, and the persistence of coal-based steelmaking puts decarbonization at risk, the group said.
Additionally, there are 80 million metric tons of existing blast furnace capacity that is set for, or undergoing, a reline.
“The next ten years represent a vital window for the iron and steel industry. With the industry responsible for 11% of global CO2 emissions, the decisions made today regarding relining and new buildouts will determine the emissions profile for the next two decades,” the groups said.
“To meet global climate goals, the steel sector must move beyond incremental gains.”
