Decarbonising the Chinese steel sector: Drivers and challenges

China’s steel sector matters in the global green transition. Decarbonising global industry is the next frontier in the transition to greener economies. Steel production accounts for 7% of global emissions. More than half of the world’s steel is produced in China. However, China’s steel production has some of the highest carbon intensities in the world. Is China’s steel sector on the path to decarbonisation? What are the government’s policies in decarbonising the sector? And how are companies faring in this transition? How are international policies such as the EU’s Carbon Border Adjustment Mechanism impacting the transition of China’s steel sector? This paper provides insights into these questions and illustrates the push and pull factors for decarbonising one of the key global industries.

By: Belinda Schäpe