A new report by Global Energy Monitor indicates that the global steel industry remains off track in its transition toward low-carbon production as 2030 decarbonization targets draw closer, according to Anadolu Agency (AA).
The report examined 1,293 iron and steel facilities across 91 countries and found that progress in low-carbon steel production remains limited. Coal-based steelmaking continues to account for approximately 88 percent of the sector’s emissions, while the steel industry is responsible for around 11 percent of global carbon dioxide emissions. According to the report, a faster shift away from coal-based steel production and greater investment in low-carbon technologies will be necessary if the industry is to align with the objectives of the Paris Agreement.
Coal-based investments continue to dominate
Although lower-emission steelmaking capacity increased slightly over the past year, the report noted that advances in fossil-free ironmaking remain slow. As of 2025, China accounts for more than half of global crude steel production, which totals approximately 2 billion mt annually. While the US and Turkey are among the leading steel producers utilizing scrap-based electric arc furnace (EAF) technology, most major steel-producing countries continue to rely heavily on coal-based iron ore reduction routes. The report also identified India as the largest source of new coal-based steelmaking investments globally.
Turkish steel sector faces emissions challenge
Commenting on the findings, Dursun Baş, a researcher at Sabancı University’s Istanbul Policy Center (IPC), said current carbon-intensive investment trends could make it difficult to achieve global climate goals. According to Baş, Türkiye's more than 40 crude steel production facilities emitted approximately 40 million mt of greenhouse gases in 2021, accounting for around 10 percent of the country's total emissions. He stated that Turkish steelmakers have significant potential to reduce emissions through improvements in material and energy efficiency, metallurgical optimization, digitalization, renewable energy adoption and engineering best practices.
Baş emphasized that realizing this emissions reduction potential by 2030 will require a binding regulatory framework, effective monitoring systems and strong public commitment. However, he warned that ongoing expansion of both integrated steelmaking and electric arc furnace-based production capacity could increase total emissions beyond the current level of 40 million mt in the coming years. According to Baş, even if efficiency measures and energy-transition investments are successfully implemented, rapid growth in steel production capacity could continue to drive overall sector emissions higher.