Towards a lower emission future for steel

Transitioning to lower emission steel production requires collaboration, investments, and financial incentives. New insights show demand for lower emission steel is on the rise - along with the willingness to pay a price premium for it.

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Making the case for a more sustainable steel production

Steel is at the core of our infrastructure and communities. However, the benefit of steel comes at a price. Steel alone is responsible for 8% of global CO₂ emissions and demand for steel is forecast to rise by 10% up to 2030.

Action is needed to deliver on industry decarbonisation commitments. This goes across the full steel value chain of producers, suppliers, investors, steel off-takers and governments. Scaling production of lower emission steel also requires demand and financial incentives.

A new report by Ramboll and Climate Group, surveying more than 250 companies across 43 countries and 21 industries, shows demand for lower emission steel is on the rise. And over half of surveyed businesses are willing to play an active role in the transition by paying a premium for steel produced with 50% lower emissions.

Let’s close the gap on a sustainable future.

: ~8%

of total global CO₂emissions stem from steel. And the demand for steel is projected to rise in the years to come. This calls for new and innovative actions in order to decarbonise the industry. (The International Energy Agency, 2023)

Growing momentum for lower emission steel

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The new report "2024 Market Outlook on Lower Emission Steel and Concrete" provides insight into buyers demand and willingness to pay a price premium for lower emission steel.

Access full report Growing momentum for lower emission steel

Steel offtakers are ready to pay price premium

Data from the global survey conducted in 2024 show that:

: 57%
of respondents would be willing to pay a premium for steel products with emission reductions exceeding 50%.

: 77%
of respondents said they expect lower emission steel will be a standard material for new products or projects within the next decade.
: 52%
of the respondents state that they are more willing to pay a premium for lower emission products now than they were just one year ago.

Steel demand

"The demand for lower-emission steel is surging, with nearly half of businesses ready to pay a premium. Now’s the time for steel-producers to transform their production for resilience and future success." Anna Ekdahl Director, Energy Intensive Industries, Ramboll

"The demand for lower-emission steel is surging, with nearly half of businesses ready to pay a premium. Now’s the time for steel-producers to transform their production for resilience and future success." Anna Ekdahl Director, Energy Intensive Industries, Ramboll.....

Transform steelmaking operations to build resilience and mitigate risk

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Identify your best options
Map your alternative energy supply options and compare them on equal terms to identify the best business case for your company.
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Assess your value chain and find key collaborators
Conduct an assessment of your market and value chain plus identify key collaboration partners and support initial discussions – with a focus on the energy infrastructure operators.
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Mitigate your unique risks
Undertake risk assessments based on highly specialised understanding of the commercial, technical, and environmental aspects of the steel industry.

Contact our industry experts

How to decarbonise your steelwork

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Watch Anna Ekdahl, Director, Energy Intensive Industries, share insights on the barriers of lower emission steel production and how to overcome them.

Get in touch with Anna Ekdahl How to decarbonise your steelwork

Unique technical and commercial advisory services with steel industry focus

The decarbonisation transition is complex, requires investments, and deep sector expertise. At Ramboll, our team of experts work across the full spectrum of the steel value chain, with deep understanding of commercial, technical, and environmental aspects of the industry. This enables us to help you de-risk investment, unlock funding opportunities, and navigate the ever evolving landscape of regulations and technology.

Anna Ekdahl
Director, Energy Intensive Industries
+45 51 61 37 41
Ask Tonsgaard Hjordt Brüel
Global Head of Energy & Utility
+45 51 61 29 15
Brogan MacDonald
Head of Sustainability–Structures
+44 7814 760380

Let’s close the gap on decarbonisation

By scaling the solutions we already have, we can decarbonise our world and achieve net zero emissions.

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