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Circular economy policies for steel decarbonisation
Circular economy strategies in the steel industry hold significant potential for reducing emissions by lowering demand and promoting secondary, low-emission steelmaking processes. Extending the “4R” framework―Reduce, Reuse, Remanufacture, and Recycle―could lead to a 20% reduction in global steel-related emissions by 2050 and relieve pressures on scrap markets that currently face regional imbalances and export restrictions. However, implementing these approaches is challenging due to limited policy focus on steel-specific circularity, quality issues in recycled materials and insufficient infrastructure for scrap management. Therefore, developing targeted policies that integrate circular economy principles in both upstream and downstream steel sectors is essential. Additionally, advanced technologies like blockchain and AI could support traceability and efficiency in scrap collection, boosting circularity and aligning with broader decarbonisation goals.
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