During COP30 in Belém, Climate Leadership Coalition brought together leading voices from business, technology and global governance to focus on one of the most important climate challenges: the decarbonization of steel. The event, organised in the We Mean Business Coalition pavilion, highlighted why near-zero emission steel is no longer a distant ambition but a rapidly emerging reality.
Steel matters
Steel accounts for roughly eight percent of global emissions. Without a credible path to cut these emissions, the Paris Agreement cannot be met. At the same time, steel is deeply intertwined with global value chains and international trade, which means that the solutions must be technological, commercial and diplomatic.
Business driving the transition
The executive discussion opened with insights from Kati ter Horst, CEO of Outokumpu and Luisa Orre, Chief Business Development Officer of Stegra, two companies already investing heavily in the transition. Both speakers underlined that the business case for clean steel is strengthening, even in the challenging market environment.
Outokumpu stressed that predictability in policy is critical for investment decisions. Uncertain tariffs, gaps in carbon pricing and shifting market expectations make long-term planning difficult, yet the growing demand for low-emission products is creating new opportunities.
Stegra shared how access to abundant renewable energy has reshaped investment logic in Northern Europe. The company is building a new greenfield steel plant in Sweden and noted that collaboration across the value chain is improving rapidly as more companies commit to decarbonization.
Global cooperation for near-zero emission steel
The second panel explored how global cooperation can accelerate the transition. Martin Pei, Senior Advisor, and innovator of HYBRIT technology of SSAB described his experience with HYBRIT, a breakthrough technology that replaces coal with fossil-free hydrogen. The pilot has demonstrated strong technical performance and has already strengthened confidence in large-scale deployment. Long-term demand signals, including reliable standards, were highlighted as essential for securing investments across the sector.
Jean-Marie Paugam, Deputy Director General of the World Trade Organization emphasized that steel sits at the intersection of climate, trade and industrial competitiveness. Common principles for carbon measurement and reporting are progressing in several regions, and the need for interoperability is growing. A global system that enables fair competition between low-emission producers would support both climate goals and economic resilience.
Simon Sharpe from S-Curve Economics called for more ambitious international cooperation. He stressed that countries need new diplomatic approaches focused on specific sectors, including steel. For decades, climate policy has struggled to address industrial emissions in a coordinated manner. Sharpe pointed out that complementary tools, such as targeted subsidies or green tariff exemptions, could create faster momentum than attempts to harmonize carbon pricing globally.
The transition is underway
Across all discussions, one message was unmistakably clear: the steel transition is no longer theoretical. It is happening now and reshaping global competition. Technology is moving fast, companies are prepared to invest, and customers increasingly expect low-emission materials. What is needed now is alignment: stable policies, clear standards, smart market incentives and international cooperation that rewards those who move first.
