Steel: "A bleak outlook for the transition away from fossil fuels" (Global Energy Monitor)

“The prospects for the steel sector’s transition away from fossil fuels remain poor. The future largely depends on India and China, which together account for 86% of planned new coal-based capacity,” said Astrid Grisby-Schulte on 11/05/2026, following the publication of Global Energy Monitor’s sixth annual report on the steel industry.

According to the US NGO, 319 million tonnes per year of coal-based blast furnace capacity had been announced or was under construction worldwide in 2025, up 5% from 2024.The steel industry is responsible for 11% of global emissions, with 88% of the sector’s emissions linked to coal-based production.

“The share of green steel production capacity has increased only slightly over the past year, while progress on green iron production remains very limited,” the report states. The share of electric arc furnaces in global operating capacity increased from 33% to 34% by 2025.

India accounts for more than 60% of new coal-based blast furnace capacity under development worldwide, and 93% of its planned iron production capacity relies on coal-based technology.

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