World’s decarbonisation goals hinge on India increasing its plans for green steel manufacture, says the Global Energy Monitor (GEM).
Key to ‘greening’ the industry is to move away from coal-based blast furnaces and transition to electric arc furnaces (EAFs), which produce significantly fewer carbon emissions even if the grid is largely coal-based. GEM report on global iron and steel production states while evaluating the progress being made toward reaching 2030 iron and steel decarbonisation goals.
A key finding is that this decarbonisation goal could feasibly be reached but all depends on India, which has the largest development pipeline of steelmaking capacity globally.
Data from GEM’s Global Iron and Steel Tracker shows that by 2030, the proportion of global steelmaking capacity relying on EAFs is expected to reach 36%, or 868 million tonnes per annum (mtpa). This is just shy of the IEA’s 38% target.
India, which is responsible for over two-fifths of global steelmaking capacity in development (352mtpa), is key to reaching this target as the country is planning to double its domestic steelmaking capacity by 2030.
While China currently dominates global steel production, its sector is stagnant.
The report reveals that India accounts for more than half of coal-based steelmaking capacity in development (200mpta). It leads the way as the country with the most carbon-intensive steel industry, emitting about one-fifth to a quarter more CO2 per tonne than China.
While India is rapidly announcing ambitious growth plans for its steelmaking industry, much of this capacity is yet to break ground. As such, the report suggests that India’s “ambitious growth plans are more talk than action thus far”.
It found that India’s capacity in development increased by over a third – from 258mpta in 2024 to 352mpta in 2025 – but construction has started on only 28mpta, or just 8%.
Astrid Grigsby-Schulte, project manager of the Global Iron and Steel Tracker, said: “India is now the bellwether of global steel decarbonisation. If the country does not increase its plans for green steel production, the entire sector will miss an important milestone. So goes India, so goes the world.
