Decarbonising Steel: Market Primer

With direct CO2 emissions from steel production representing a substantial portion of all greenhouse gas emissions, there is a strong focus from both market participants and policymakers on strategies for decarbonising the full steel value chain. The transition to greener steel production methods will require substantial investment and collaboration between various stakeholders, including steel producers, upstream mining companies, investors, and governments. Ultimately, the evolution toward green steel underscores the commitment to a more sustainable future. However, it is only through targeted government incentives and policies that the economic barriers to green steel can be overcome, aligning economic viability with environmental responsibility.

Drawing from our extensive experience advising on cutting-edge mining and metals and new clean energy technology sector developments, our report (produced in collaboration with AME) provides an in-depth analysis of the current state and future prospects of the low-carbon steel market, with a particular focus on:

• various low-carbon steel technologies and regulatory drivers that are shaping the market
• the concept of green premiums, and their expected increase as we approach global emissions targets for 2030 and 2050
• the development of low-carbon steel standards and the role of clean hydrogen in steel production.
• the role of the European Union’s Green Deal and the Carbon Border Adjustment Mechanism (CBAM) in decarbonising steel, along with similar initiatives in the United Kingdom, the United States, and Australia
• the pace of development, challenges and opportunities across the entire steel supply chain of the low-carbon steel market.

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