Decarbonization, energy and raw materials were at the heart of debates in Rimini at Ecomondo 2025, a leading international event dedicated to the green and circular economy. Participants heard that the race toward low-emission steel continues, but challenges remain over costs, technology and regulatory stability.
The transformation of the European steel industry toward low-CO₂ production represents one of the most complex turning points in the continent’s industrial transition. During one of the conferences held at Ecomondo 2025, experts, analysts and industry representatives reviewed the progress toward a decarbonized steel sector, discussing its challenges, targets, and economic implications. Producing green steel means not only reducing environmental impact, but also fundamentally rethinking the entire production framework - from technology and energy supply to financial and market models.
The global map of decarbonization
The discussion highlighted how the race toward climate neutrality has now become a global process. More than 80 percent of the world’s steel production comes from countries that have already set net-zero targets, with Europe and East Asia taking a leading role. The European Union aims for carbon neutrality by 2050, while the United States, Japan and South Korea have adopted similar goals. China and India, which together account for well over half of global steel output, are expanding their carbon markets and introducing policies to define so-called Green Steel classifications.
Only Russia and Iran currently remain outside this shared decarbonization path.
Technology, energy and raw materials - the three critical pillars
The ecological transition of the steel industry requires a deep technological overhaul. Fully carbon-free solutions have not yet reached industrial maturity, and production costs remain significantly higher than those of traditional processes.
Replacing blast furnaces with electric arc furnaces will also lead to a sharp rise in electricity demand - energy that must be both renewable and cost-competitive. At the same time, developing a green hydrogen supply chain, intended to replace natural gas in thermal processes, is essential, though still far from full-scale deployment.
On the raw materials side, the availability of high-grade iron ore and high-quality scrap remains limited. This could intensify competition for resources and widen the price gap between conventional and low-emission steels.
Investments and regulation - transition needs stability
According to the analyses presented during the event, full decarbonization of the European steel industry will require investments estimated between €60 billion and €85 billion. It is an enormous commitment for a sector that, after years of weak margins and stagnant demand, must now finance the most extensive technological transformation in its history.
Speakers also stressed the need for a stable and coherent regulatory framework. The rapid evolution of EU rules on the Emissions Trading System (ETS) and carbon accounting risks creating uncertainty in a sector where investment cycles span several decades.
Recycling and circularity - a tangible contribution
Within the path to climate neutrality, steel recycling remains an immediate and scalable tool.
Data presented in Rimini confirmed that the steel packaging recovery in Italy has already generated significant environmental and economic benefits, with more than €1.4 billion worth of recovered material and over 500 million kilograms of CO₂ avoided between 2000 and 2024.
These results show how a circular steel industry can directly contribute to emission-reduction goals by lowering dependence on primary raw materials and maximizing the value of resources already within the production cycle.
Toward a more sustainable European steel industry
The decarbonization of Europe’s steel sector is clearly underway but remains riddled with uncertainties.
The transition requires a delicate balance between technological innovation, economic sustainability, and regulatory coherence.
As emphasized during the discussions at Ecomondo, the goal is not only to produce zero-emission steel, but to build an industrial model capable of remaining competitive in the long term - one that reconciles growth, environmental responsibility and energy security.
