News » A Green Deal on Steel video series - episode 3
A Green Deal on Steel video series - episode 3
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This is the third episode in EUROFER's Green Deal on Steel series: The pathways to low-carbon steelmaking.
Carbon-lean steelmaking relies on new ways of doing things. Current steelmaking technology is at its absolute limits. The ‘transition’ to low-carbon steel is actually a technological revolution.
The European steel industry has found two main ‘pathways’ that together could lead to 80-95% reductions in CO2 emissions from steel production by 2050. These pathways are reinforced by an overarching commitment to the circular economy through resource efficiency and the recycling of steel.
The technological pathways are Smart Carbon Usage and Carbon Direct Avoidance.
Smart Carbon Usage seeks to reintegrate so-called ‘process gases’ into the production process or to use carbon monoxide and dioxide as a raw material to make other, useful products.
Carbon Direct Avoidance includes hydrogen-based metallurgy and electricity-based reduction methods using green sources. In this framework, the Electric Arc Furnace route will be fundamental to strengthening the EU steel industry’s position in the circular economy.
If fully implemented, these pathways could change how we make steel in Europe.
A milestone occasion to quickly and effectively restore affordable electricity, to relaunch the
decarbonization and strengthen the international competitiveness of the European steel
industry.
Brussels, 02 December 2025 – Unchanged negative conditions – U.S. tariffs and trade disruptions, economic and geopolitical tensions, protracted weak demand and still high energy prices – continue to weigh on the European steel market. EUROFER’s latest Economic and Steel Market Outlook confirms for 2025 another recession in both apparent steel consumption (-0.2%, unchanged) and steel-using sectors (-0.5%, revised from -0.7%). A potential recovery is expected only in 2026 for the Steel Weighted Industrial Production index (SWIP) (+1.8%, stable) and for apparent steel consumption (+3%, slightly revised from +3.1%) – although consumption volumes would still remain well below pre-pandemic levels. Steel imports retained historically high shares (27%), while exports plummeted (-9%) in the first eight months of 2025.
Fourth quarter 2025 report. Data up to, and including, second quarter 2025