A recent report highlights that the global steel industry is significantly increasing its reliance on coal, with new capacity additions far exceeding retirements. According to the findings, 319 million tonnes per annum (mtpa) of coal-based blast furnace capacity has either been announced or is currently under construction worldwide. This development underscores a persistent commitment to traditional steelmaking methods, despite growing international pressure to decarbonize the sector.
Key Findings from the Report
The report emphasizes that the expansion of coal-based capacity is concentrated in a few key regions, including Asia, where demand for steel continues to rise. While some older plants are being retired, the pace of new installations is outpacing closures, resulting in a net increase in coal-dependent production capabilities.
Implications for Climate Goals
This trend poses significant challenges to global climate targets, as the steel industry is one of the largest industrial sources of carbon dioxide emissions. The report calls for stronger policy measures and technological innovation to accelerate the transition to cleaner alternatives, such as hydrogen-based steelmaking or electric arc furnaces powered by renewable energy.
The data was released by Mrityunjay Bose on 11 May 2026, and has sparked discussions among industry stakeholders and environmental groups. The full report provides a detailed analysis of capacity trends across different countries and companies.
