Steel production accounts for about 7 percent of global industrial energy-related greenhouse gas emissions. Energy costs represent 20 to 40 percent of steel production expenses depending on region and process. Electric arc furnaces hold 9.7 percent of global crude steel capacity.
Key Takeaways
- Energy is the largest controllable operating cost in steelmaking; energy costs can represent roughly 20%–40% of steel production costs depending on region and process (cost share range)
- Steelmaking can generate around 0.8–1.2 tonnes of waste per tonne of crude steel in certain plant operations (waste generation range)
- Waste heat recovery projects in steel can improve overall energy efficiency by 5%–15% (efficiency from recovered heat)
- Steel production contributed about 7% of global industrial energy-related greenhouse gas emissions in 2020
- Nearly all (about 98%) blast furnaces and integrated steelworks use coal-based processes rather than direct reduction routes (global structure figure)
- In 2022, 9.7% of global crude steel capacity was based on electric arc furnaces (trend level)
- The share of scrap in steelmaking is projected to increase to about 30% by 2050 in many scenarios (scrap availability trend)
- EU steel producers must meet quarterly monitoring and reporting obligations under EU ETS rules for installations (compliance practice measure)
- Electric arc furnaces can be up to 60%–70% more energy efficient than basic oxygen furnace primary routes when run with modern scrap-based practice (energy efficiency comparison)
- In the European cementitious sector, clinker substitution rates of 15%–30% are shown to reduce CO2; by analogy, similar material-efficiency improvements are a key abatement lever in steel value chains (industrial decarbonization lever quantified)
- SCR (selective catalytic reduction) can reduce nitrogen oxides (NOx) emissions by about 70%–90% in combustion sources used in steel plants
- The global steel market size was about $1.8 trillion in 2023 (industry estimate)
- The EU CBAM requires reporting of embedded emissions for covered goods starting in a transition period in 2023
Energy dominates steel costs and emissions, making efficiency and cleaner routes like scrap EAFs key to decarbonization.
Related reading
01 · Category
Cost Analysis9 stats
01
Energy is the largest controllable operating cost in steelmaking; energy costs can represent roughly 20%–40% of steel production costs depending on region and process (cost share range)
02
Steelmaking can generate around 0.8–1.2 tonnes of waste per tonne of crude steel in certain plant operations (waste generation range)
03
Waste heat recovery projects in steel can improve overall energy efficiency by 5%–15% (efficiency from recovered heat)
04
CCUS retrofit costs for heavy industries can be on the order of €60–€120 per tonne of CO2 avoided (cost-effectiveness range in reports)
05
$11.8 billion in total announced investment commitments for low-carbon steel and related decarbonization projects was reported globally in 2023 (commitments total)
06
Hydrogen procurement cost is a major component of green steel cost; electrolytic hydrogen cost targets of about $1–$2 per kg are used in many pathway models (cost target used in industry roadmaps)
07
Iron ore prices averaged about $120–$130 per tonne in 2023 (benchmark for raw-material cost)
08
Natural gas price volatility materially affects direct reduction economics; in 2022 European TTF prices averaged about €80–€100 per MWh (input cost reference)
09
Electrification and digital optimization can reduce energy cost per tonne by around 2%–8% in industrial deployments (cost savings benchmark)
Interpretation
Cost Analysis Interpretation
From a cost analysis perspective, energy is the biggest controllable operating expense for steel since it can account for about 20% to 40% of production costs, and initiatives like waste heat recovery that lift efficiency by 5% to 15% and electrification that cut energy cost per tonne by roughly 2% to 8% can directly move the economics while CCUS can add decarbonization at around €60 to €120 per tonne of CO2 avoided depending on the retrofit.
02 · Category
Emissions & Intensity2 stats
01
Steel production contributed about 7% of global industrial energy-related greenhouse gas emissions in 2020
02
Nearly all (about 98%) blast furnaces and integrated steelworks use coal-based processes rather than direct reduction routes (global structure figure)
Interpretation
Emissions & Intensity Interpretation
For the emissions and intensity angle, steel accounted for about 7% of global industrial energy related greenhouse gas emissions in 2020, and the fact that roughly 98% of blast furnaces and integrated steelworks still rely on coal-based processes shows why reducing intensity remains tightly linked to decarbonizing these dominant routes.
03 · Category
Industry Trends5 stats
01
In 2022, 9.7% of global crude steel capacity was based on electric arc furnaces (trend level)
02
The share of scrap in steelmaking is projected to increase to about 30% by 2050 in many scenarios (scrap availability trend)
03
EU steel producers must meet quarterly monitoring and reporting obligations under EU ETS rules for installations (compliance practice measure)
04
The CBAM covers imports of goods including iron and steel products from 2023 onwards for reporting during the transition period
05
The European Commission’s steel safeguard measures triggered quotas/ceilings for certain imports during 2019–2021 (policy trend indicator)
Interpretation
Industry Trends Interpretation
In 2022, electric arc furnaces accounted for 9.7% of global crude steel capacity, and with scrap’s expected rise to about 30% by 2050 plus tightening EU monitoring and CBAM and safeguard-driven import rules, industry trends show steelmaking and trade are being reshaped by sustainability pressure and higher circularity.
More related reading
04 · Category
Technology & Abatement4 stats
01
Electric arc furnaces can be up to 60%–70% more energy efficient than basic oxygen furnace primary routes when run with modern scrap-based practice (energy efficiency comparison)
02
In the European cementitious sector, clinker substitution rates of 15%–30% are shown to reduce CO2; by analogy, similar material-efficiency improvements are a key abatement lever in steel value chains (industrial decarbonization lever quantified)
03
SCR (selective catalytic reduction) can reduce nitrogen oxides (NOx) emissions by about 70%–90% in combustion sources used in steel plants
04
Desulfurization units can reduce sulfur dioxide (SO2) emissions by around 90% in integrated flue gas systems (typical performance)
Interpretation
Technology & Abatement Interpretation
In the Technology and Abatement category, steel plants can make major emissions gains because electric arc furnaces run with modern scrap practice are 60% to 70% more energy efficient, while advanced controls like SCR cut NOx by about 70% to 90% and desulfurization can reduce SO2 by around 90%.
05 · Category
Market Size2 stats
01
The global steel market size was about $1.8 trillion in 2023 (industry estimate)
02
The EU CBAM requires reporting of embedded emissions for covered goods starting in a transition period in 2023
Interpretation
Market Size Interpretation
With the global steel market at about $1.8 trillion in 2023, the EU’s move to require embedded emissions reporting for covered goods starting in the 2023 transition period signals that sustainability will increasingly shape market dynamics at massive scale.
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Stefan Wendt. (2026, February 13). Sustainability In The Steel Industry Statistics. Gitnux. https://gitnux.org/sustainability-in-the-steel-industry-statistics
MLA
Stefan Wendt. "Sustainability In The Steel Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/sustainability-in-the-steel-industry-statistics.
Chicago
Stefan Wendt. 2026. "Sustainability In The Steel Industry Statistics." Gitnux. https://gitnux.org/sustainability-in-the-steel-industry-statistics.
Sources & references
22 datasets cited across this report · attribution is report-level
+10 additional datasets cited (not shown individually)