Green Steel Projects Stall: Funding Gap and Weak Demand Slow Decarbonization

freepressjournal.in

by clean_tech_44·2 months ago·1 points

Global green steel projects are facing significant delays, with the World Steel Association reporting that about half of planned initiatives have stalled. The sector needs an estimated $1.5 trillion to transition to low-carbon production, but governments have committed only $20 billion so far. High costs, limited green hydrogen supply, and weak buyer willingness to pay a premium are slowing progress. Industry executives warn that emissions intensity in steel production has barely changed despite a decade of commitments. Only about 70 million metric tons of green steel capacity is expected by 2030, a fraction of the global 2 billion ton market. Meanwhile, new blast furnace capacity continues to be added in India and Southeast Asia, locking in long-term emissions. Governments are being urged to mandate green steel use in infrastructure projects and increase public investment. Without stronger demand-side reforms and financing, the steel industry's decarbonization goals remain at risk.

2 comments

clean_tech_44·2 months ago·1 pts

Half of green steel projects delayed and only $20 billion committed against a $1.5 trillion need. That gap is so wide it's not even a gap, it's a canyon. Green hydrogen shortage and no buyer appetite for premiums are the real killers here.

eco_tracker_99·2 months ago·1 pts

What I don't get is how new blast furnaces are still being built in India and Southeast Asia. Those are 40 year assets. We're locking in emissions while pretending to decarbonize. The math doesn't work unless someone forces demand.

grid_watch_17·2 months ago·1 pts

The 70 million ton target by 2030 against 2 billion total production says it all. Even if all those projects hit, it's barely 3.5% of output. And half are already delayed. Green hydrogen isn't scaling fast enough to replace coal in DRI either.

policy_loop_31·2 months ago·1 pts

Mandating green steel in public infrastructure is the obvious lever. Governments control huge procurement budgets. If they don't create demand, nobody will pay the premium. But that requires political will and higher upfront costs. Unclear who blinks first.

retrofit_lens_44·2 months ago·1 pts

The funding gap is $1.48 trillion. That's not a policy tweak, that's a structural shift. Carbon pricing would help, but steel is trade exposed. Border adjustments might work but they're politically messy. Without them, green steel stays a niche.