Momentum stalls for green steel

After several years of positivity, the global green iron and steel sector is approaching a pivotal point.

Data from the Leadership Group for Industry Transition (LeadIT) shows that momentum slowed sharply in 2025, with the number of new project announcements falling from a peak of 15 in 2021 to just two last year.

Planned primary green steel capacity for 2050 still represents less than 2% of today’s global steel production, signalling the substantial scale-up required to decarbonise the sector. LeadIT says 2026 could prove decisive for green steel.

The Green Steel Tracker identifies Stegra’s Boden project in Sweden as the most significant near‑term milestone. If delivered, it would mark the world’s first full‑scale commercial commissioning of green steel. Several pilot and demonstration plants in Germany and the US are also expected to advance in the coming months.

However, the Tracker shows delays are common for projects with published commissioning dates, and limited transparency makes many timelines difficult to assess. In 2025, several high‑profile European projects were paused or cancelled.

The analysis shows that only a small share of planned green steel and green iron capacity has materialised. Out of today’s roughly 1.8Bt of global steel production, just 270,000t of green iron and 60,000t of green steel capacity are currently operational.

However, major steelmakers continue to signal commitment despite facing higher costs, weak demand and uncertain policy environments. LeadIT warns that stronger policy intervention may be essential to sustain early‑stage momentum.

Meanwhile, China is accelerating its adoption of hydrogen-based direct reduced iron (DRI) technology.

LeadIT, founded in 2019 by the governments of India and Sweden and hosted by the Stockholm Environment Institute, brings together 18 countries and 30 companies working to accelerate a just and equitable transition to net‑zero emissions in heavy industry.