Nordic Near-Zero Emissions Steel

The steel sector accounts for approximately 2.8 gigatonnes of CO2e emissions annually, or 8% – 10% of total energy system emissions globally. We in the Nordic countries are home to some of the world's leading producers of near-zero emissions steel, as well as to leading companies developing products that create demand for that steel. This joint initiative aims to accelerate decarbonization in the steel industry by aligning efforts across sectors and coordinating Nordic policy action. Together, we are building a model for near-zero emissions steel that can scale across Europe and beyond.

The Nordic near-zero emissions steel initiative focuses on:

Building a coordinated Nordic frontrunner coalition across the near zero emissions steel value chain to articulate shared priorities and act collectively in policy engagement
Identifying, refining, and advancing high impact policy solutions that remove barriers and create enabling conditions for near zero emissions steelmaking at EU and national level
Strengthening and defending core EU policy frameworks critical to steel decarbonisation, including carbon pricing, carbon leakage protection, lead market creation, and industrial enabling conditions
Coordinating public private action across the Nordics to reinforce national support for steel decarbonisation and align domestic political signals with EU level advocacy
Expanding collaboration beyond the Nordics by building alliances with like minded European regions and actors to amplify frontrunner voices in Brussels
Laying the foundations for globally interoperable approaches to near zero emissions steel through early coalition building, standards alignment, and exploration of coordinated international action

Steel is foundational to economies and security worldwide, and to remain competitive and autonomous, the EU must decarbonize steel and shift towards near-zero emissions production. To achieve near-zero emissions steel, immediate collaborative action is essential, and the Nordics are leading the way.

Nordic demand drives the market

The Nordics are home to globally competitive industries that rely heavily on steel — particularly in buildings and infrastructure, transportation, mechanical equipment, and automotive manufacturing. These value chains are well-positioned to lead the shift toward near-zero emissions steel, but only if the transition is both technically and economically viable.

For this transformation to succeed, near-zero emissions steel must be more than just available — it must be the smart and competitive choice. Robust certification systems and harmonized standards are needed to ensure that users can identify and trust the right quality of steel for their products.

Leadership in near-zero emission steelmaking

Finland and Sweden combined make up 6.4% of EU steel production as of 2023, which makes the Nordic output the 5th largest in the EU. The Nordic region has already taken significant steps toward fossil-free steelmaking, with leading companies making notable investments. For example, Stegra is building the world’s first large-scale green steel plant, SSAB is replacing polluting basic oxygen furnaces with electric arc furnaces, and Outokumpu is paving the way towards zero-carbon metals. The impact of these projects proves that smaller regions can compete globally.

Overcoming barriers to scaling near-zero emission steel

Despite this progress, several critical challenges remain. These include the need for clear standards on near-zero emissions steel, better fossil-free energy supply, and faster permitting for green industrial projects. EU-level involvement is particularly vital in areas such as electricity supply and hydrogen market development, financial support mechanisms, and public procurement to mitigate risks associated with being a first mover in the sector. Sustaining a supportive policy environment is crucial now to scale the Nordic progress to a competitive European model.

The Nordic Near-Zero Emissions Steel initiative addresses these challenges by uniting companies across the value chain and creating a space for collaboration with the whole ecosystem, including policymakers and financiers.The initiative seeks to identify investment bottlenecks and establish clear policy priorities. It aims to create a cooperation template that can be replicated outside the Nordics and applied to other high-carbon industries.

This initiative is coordinated by Climate Leadership Coalition, Demos Helsinki, and We Mean Business Coalition.

At Fortum, we believe that deep industrial decarbonisation is not only necessary but possible – especially when we act together. Participating in the Near Zero Steel coalition aligns perfectly with our strategy to drive decarbonisation in industries. Together, we can accelerate the transition to fossil-free steel through strong partnerships and shared commitment to climate action.

Urs Pennanen, Senior Vice President, Corporate Customers, Fortum

While steel accounts for 10% of global greenhouse gas emissions – the future infrastructure, from clean tech to construction, mobility and defense, all rely on steel. At the same time, the outlook for the European steel market remains challenging, and it is critical to tackle the challenges with concrete solutions ensure the competitiveness of the industry. Outokumpu has actively contributed to the EU’s Steel & Metals Action Plan, and now we’re pushing forward the Near Zero Steel project with other Nordic frontrunners to help turn decarbonization into a growth driver for European industries.

Heidi Peltonen, Vice President, Sustainability at Outokumpu

The availability of low-carbon steel is essential for reducing greenhouse gas emissions and meeting global climate targets. Using low-carbon steel helps reduce our scope 3 emissions and provides our customers with more sustainable building solutions. Supporting near zero steel production in the Nordics is beneficial as it promotes innovation, strengthens local economies, and enhances energy security through the use of green electricity and stable electricity markets. Together, we can contribute to a greener future.

Wilhelm Ehrnrooth, Vice President, ESG, YIT Corporation

Kalmar’s participation in initiatives like the Nordic Near Zero Steel project plays a vital role in our decarbonisation efforts. As steel accounts for the majority of our upstream Scope 3 emissions, incorporating low-emission steel into our equipment is a key enabler of our climate ambitions: a 40% reduction in Scope 3 emissions by 2030 and net-zero by 2045. This step not only significantly reduces our environmental impact but also allows us to support our customers in meeting their climate targets by offering more sustainable heavy material handling equipment throughout its lifecycle.

Marjolein Lainejoki, Senior Manager, Sourcing Sustainability, Kalmar

Finnish Energy believes Finland is uniquely poised to lead in near-zero emission steel production. With 95% fossil-free and globally competitive electricity, along with substantial potential for clean energy expansion, Finland is at the forefront. Our interconnected, intelligent power grids and unified electricity pricing, combined with a robust market for excess heat, create an ideal environment.We are excited about the collaboration between the emerging near-zero steel sector and our companies specializing in electricity, gas, district heat, and cooling services. Together, we can drive a sustainable and innovative future.

Joona Turtiainen, Director, Sustainable Growth at Finnish Energy

Latest insights

Participating companies

Outokumpu is accelerating the green transition as the global leader in sustainable stainless steel. We are the market leader in Europe and the second largest in the Americas. Our turnover in 2024 stood at EUR 5.9 billion and our European production is located in Finland, Germany and Sweden. Last year, we reduced 10 million tonnes of carbon emissions with our customers, and improved our emission reduction by 32%, compared to the baseline of 2016 – on our way to reach 42% reduction by 2030.

Our business is based on the circular economy, and we use more than 90% recycled steel in our production – resulting our stainless steel to have 75% lower carbon footprint compared to the industry average. We also have the only chromium mine in the EU, which is a critical raw material to produce stainless steel. This unique position offers a competitive advantage and strengthens Europe's self-sufficiency in low-emission raw materials.

Outokumpu Corporation employs approximately 8,700 professionals in close to 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki.

SSAB is a global steel company with a leading position in high-strength steels and related services. Our vision is a stronger, lighter and more sustainable world. SSAB is revolutionizing steelmaking with two unique decarbonized steels and aims to largely eliminate carbon dioxide emissions from our own operations.

SSAB is organized across five business segments consisting of three divisions: SSAB Special Steels, SSAB Europe and SSAB Americas, and the fully-owned subsidiaries: Tibnor and Ruukki Construction.

Kalmar (Nasdaq Helsinki: KALMAR) is moving goods in critical supply chains around the world, with the vision to be the forerunner in sustainable material handling equipment and services. The company offers a wide range of industry shaping heavy material handling equipment and services to ports and terminals, distribution centres, manufacturing and heavy logistics. Headquartered in Helsinki, Finland, Kalmar operates globally in over 120 countries and employs approximately 5,200 people. In 2024, the company's sales totalledapproximately EUR 1.7 billion.

We build and develop sustainable living environments: functional and attractive homes, future-proof public and commercial buildings, infrastructure to support the green transition as well as industrial, production, and energy facilities to support our customers' processes. YIT's vision is to be the expert partner in developing sustainable homes, spaces, and cities - for a good life. There are approximately 4,100 professionals in our team and our revenue in 2024 was EUR 1.8 billion. YIT Corporation's shares are listed on Nasdaq Helsinki.

Stegra is a company focused on decarbonizing hard-to-abate industries, particularly the steel industry, by developing and implementing green steel production facilities. Stegra is building a large-scale green steel plant in Boden, Sweden, which is expected to be operational in 2026. This plant will utilize green hydrogen and renewable electricity to produce steel with significantly reduced CO2 emissions.

Metso is a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally. We improve our customers’ energy and water efficiency, increase their productivity, and reduce environmental risks with our product and service expertise. Metso is headquartered in Espoo, Finland. At the end of 2024 Metso had close to 17,000 employees in around 50 countries, and sales in 2024 were about EUR 4.9 billion. Metso is listed on the Nasdaq Helsinki

Fortum is a Nordic energy company committed to powering a world where people, businesses, and nature thrive together. We generate and deliver reliable energy to our customers and the Nordic energy system while helping industries decarbonise their processes and grow. Our core operations comprise efficient and best-in-class low-carbon power generation, customer services, and heating and cooling. Already today, 99% of our power generation is from nuclear and renewable sources with one of the lowest specific CO2-emissions in Europe.

Finnish Energy represents companies that produce, acquire, transmit and sell electricity, gases, district heating and cooling and offer related services.

AFRY is a European leader in engineering, design, and advisory services, driving sustainable progress across infrastructure, industry, and energy. Our operations are built around five divisions: Infrastructure, Industrial & Digital Solutions, Process Industries, Energy, and Management Consulting. With 18,000 employees in more than 40 countries, AFRY combines deep technical expertise with a strong engineering heritage.

Funders

TAH Foundation is a non-profit foundation established in January 2014. The foundation’s purpose is to support and promote societal well-being, culture, the environment, and science, as well as related research and education. Its guiding principles are openness, collaboration, and dialogue.

We accelerate the transition to a sustainable future through significant emission reductions, systemic solutions, and changes in human behavior. At present, we are particularly focused on reducing global emissions from steel production.