SUSTAINABLE FINANCE
THE MIDDLE EAST PRODUCES
40 %
OF DRI GLOBALLY
from 2026 to 2027 by the Omnibus simplification package. The EU Emissions Trading System( EU ETS) has also faced changes, excluding“ downstream finishing processes” for aluminium and steel from the system boundaries of carbon calculations. As these regulations continue to roll out, primary steel consumption could be subject to tariffs regardless of origin.
The cost of electricity, used for EAFs, has risen sharply, bringing the cost of low carbon steel up with it. Standard Chartered says that this dynamic could lead to a shortfall in credible low carbon feedstock and Europe could risk accelerated de-industrialisation as investments in the steel sector move to markets offering more competitive pricing.
Low carbon steel in the Middle East The Middle East, Standard Chartered says, has a robust volume of renewable and natural gas resources which can directly power EAFs and low carbon steel production.
90 March 2026