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Collaboration Key to Transformation of Asia’s Steel Sector

The Asian steel sector’s path to a greener future requires collaborative efforts between manufacturers and investors, according to the Asia Investor Group on Climate Change (AIGCC). Asia plays a central role in global steel production, accounting for approximately 70% of the world’s steel output. A recent AIGCC roundtable highlighted the need for a structured transformation of the global steel industry, responsible for over 7% of annual CO2 emissions. Investors outlined actions for steelmakers, such as establishing clear, time-bound definitions for “transition technologies for steel” and providing greater transparency on the commercial viability of decarbonising technologies at different technology readiness levels (TRLs). They also urged more peer collaboration and cross-sectoral partnerships to overcome scaling challenges. Further, the AIGCC called for policymakers to adopt forward-thinking approaches, including cross-border trading of scrap steel, stronger carbon pricing signals, and green procurement policies. Valerie Kwan, Director of Stewardship and Corporate Engagement, AIGCC said: “This roundtable is a first of its kind bringing together Asian steelmakers and investors to discuss industry-wide actions required to future-proof the Asian steelmaking industry in the global accelerated transition to net zero. With deeper appreciation of existing efforts and gaps within the industry, investors are well positioned to advocate for supportive policies and financing incentives to strengthen the development of a green steel value chain.” Separately, a new report from research consultancy Wood Mackenzie said electric-arc furnace technology, increased use of green feedstock, and evolving carbon policies would play a crucial role in the transformation of the global steel industry. 

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