China Halts New Coal-Based Steel Projects, Embraces Green Production

Shift to electric arc furnaces aims to cut steel industry emissions by 200 million tonnes by 2026.

China approved no new coal-based steel projects in the first half of 2024, focusing on cleaner electric arc furnaces (EAF).
The transition is driven by upcoming EU carbon levies and China's own emissions trading scheme.
EAF projects, which use recycled scrap, are significantly less carbon-intensive than traditional blast furnaces.
China's steel industry, the world's largest, faces challenges including limited scrap supply and young blast furnace fleet.
The move supports China's goal to peak carbon emissions before 2030 and achieve carbon neutrality by 2060.