SUSTAINABLE FINANCE
LOW CARBON STEEL TECHNOLOGIES
Direct reduced iron( DRI) is a steelmaking feedstock produced by removing oxygen from iron ore.
Electric arc furnaces( EAF) use an electrical arc powered by electricity to melt scrap metal for steel production, replacing coal blast furnaces. EAFs can use renewable energy.
Green hydrogen can be used as a reducing agent in DRI plants, emitting only water vapour instead of CO₂.
About low carbon steel“ Steel is a critical enabler of economic development,” Ben explains.“ It’ s also used in nearly every low carbon technology needed to support the transition, including wind turbines, solar infrastructure and electric vehicles.” According to the IEA, traditional steelmaking is responsible for 7 to 8 % of global CO₂ emissions, making it the largest industrial source of emissions.
Another Transition Finance Insight from Standard Chartered looks at supporting a cross-regional low carbon steel corridor and the opportunities this could present to help accelerate low carbon growth across Europe and the Middle East.
88 March 2026