Global Steel Industry Expands 319 Million Tons of Coal Capacity as Green Shift Falters
Updated
Updated · Bloomberg · May 11
Global Steel Industry Expands 319 Million Tons of Coal Capacity as Green Shift Falters
9 articles · Updated · Bloomberg · May 11
319 million tons of annual coal-based blast furnace capacity is under development globally, up 5% from a year earlier, according to Global Energy Monitor's latest steel-sector report.
Coal reliance is deepening because steelmakers are still spending on blast furnaces while underinvesting in cleaner production methods, putting the industry's decarbonization plans in doubt.
Another 80 million tons of existing facilities is being overhauled, taking total coal-linked capacity additions and upgrades far beyond the 141 million tons scheduled for retirement.
That imbalance suggests the sector's pipeline still favors long-lived coal assets, complicating efforts to align steel production with broader green-transition goals.
As steel giants bet billions on old coal technology, is the dream of a hydrogen-powered 'green steel' future already dead?
With Asia building a new coal-fired steel empire, can the EU's carbon border tax truly force a global green shift?
Coal-Based Steel Expansion Threatens $500 Billion in Stranded Assets and Global Climate Targets: Urgent Need for Green Steel Transition
Overview
The global iron and steel industry is one of the most energy-intensive sectors and stands as the largest single industrial source of greenhouse gas emissions, responsible for about 11% of global CO₂ emissions. Much of this impact comes from traditional coal-based blast furnace production, which is far more carbon-intensive than newer methods like electric arc furnaces. As steel production remains heavily concentrated in Asia, especially China, any expansion of coal-based steel capacity has an immediate and severe impact on climate goals, making the industry's transition to cleaner technologies urgent for global climate stability.