The term Greensteel has gained global attention as industries seek to reduce carbon emissions, but what truly qualifies as “green” remains heavily debated. While conventional steel production relies on coal-based blast furnaces—contributing around 7% of global CO₂ emissions—Greensteel offers solutions for low-carbon steelmaking. However, the criteria for what is Greensteel varies across industries, governments, and sustainability advocates.
Technology-Based Definition
One viewpoint holds that Greensteel must be strictly defined by its production method, meaning that steel should be produced using hydrogen-based direct reduction (HDR) and other methods instead of coal to replace coke and coal with green hydrogen, eliminating nearly all carbon emissions from the steelmaking process.
Lifecycle-Based Definition
Others take a broader view, insisting that Greensteel should be defined by lifecycle emissions, rather than just the production phase. Steel made from recycled scrap in Electric Arc Furnaces (EAFs) can drastically cut carbon emissions if powered by renewable energy. This perspective highlights the circular economy’s role in steel sustainability, arguing that recycling steel through low-emission methods should also qualify as green.
The Role of Carbon Capture & Storage (CCS)
A more flexible stance suggests that Greensteel should encompass production techniques that reduce carbon emissions compared to traditional blast furnaces, even if they still use fossil fuels. This includes Carbon Capture and Storage (CCS), where emitted CO₂ is captured and stored underground instead of being released into the atmosphere. Critics warn that CCS does not eliminate fossil fuel dependency, but some industry leaders view it as a necessary intermediate step before a full transition to HDR.
Market Confusion & A Consensus Needed
The lack of a standardized definition creates confusion about what is Greensteel, allowing companies to label steel as “green” based on minimal improvements rather than full decarbonization. Regulatory bodies and sustainability organizations have started drafting certification systems to ensure transparency. The European Commission has proposed criteria where steel must reduce emissions by at least 80-90% to be considered truly green.
Despite differing views, industries agree that a Greensteel solution is essential for decarbonization. Whether hydrogen-based, recycled, or utilizing CCS, its definition will evolve with regulations and new technologies. Without global standards, greenwashing remains a risk, making it critical for policymakers and businesses to establish clear benchmarks for truly Greensteel.
