What does “green steel” really mean?​

What is green steel?

The good news? Both steel producers and steel customers are increasingly open to changes in the steel industry. There are many promising initiatives, but one major challenge remains: there’s still no clear definition of sustainably produced steel.

The term green steel is widely used to describe steel made with lower emissions, but what does it really mean? The reality is that the industry lacks universal standards, leaving room for interpretation. Many companies market their steel as green, yet the criteria behind these claims can be vague or inconsistent. In some cases, steel is labeled green even when only a fraction of the production process is sustainable, while the rest remains carbon-intensive.

Why defining green steel matters

Without a clear benchmark, green steel risks becoming a buzzword rather than a real solution. Some manufacturers may claim sustainability even when the reduction in CO₂ emissions is minimal or non-existent. For example, if only 10% of a steelmaker’s output is lower-emission steel, but the other 90% follows traditional, high-emission processes, is it truly green? In the race to combat climate change, transparency matters more than ever.

"Today, companies can claim their steel is green even if the contribution to CO₂ reduction is negligible. Uncomfortable facts can be omitted at a time when there’s an urgent need to combat climate change. Everyone buying and using products containing steel has the right to see the facts behind climate change promises. Green statements are not enough," says Johan Anderson, Market Development at SSAB. "The responsibility of the steel industry is not just to remove the carbon footprint, but also to show exactly how it’s done.”

On the bright side, steel customers and end-users are demanding more transparency. The call for hard numbers and scientific proof is putting pressure on steelmakers to back up their claims.

"Customer demand for decarbonized steel and products with less cimate impact is real. It encourages and pushes us as steelmakers to go all the way, virtually eliminating the product’s carbon footprint," Anderson adds.

A path to truly sustainable steel

Steel production is one of the largest contributors to CO₂ emissions, responsible for around 7% of global emissions. But the good news is that solutions exist.

One of the most effective strategies is steel recycling, which has reached an impressive 90% in many parts of the world. However, recycled steel alone isn’t enough – it currently meets just. That’s why the industry must also focus on transitioning to a quarter of global demand truly sustainable steelmaking processes.

As companies source steel, it’s crucial not to take green labels at face value. Instead, they must dig deeper, investigate what’s behind the claims, and demand scientific proof. Because in the fight against climate change, facts – not just promises – will make the real difference.

Why fossil-free steel is the only true “green” solution

With no official definition of “green steel,” it’s the technology and process behind it that determine whether a steel product is truly sustainable.

The HYBRIT^® technology is a game changer, virtually eliminating the carbon footprint and redefining what sustainable steel should be.

At the heart of this revolutionary process is water. Using fossil-free electricity, water is split into hydrogen and oxygen. The hydrogen then removes oxygen from the iron ore, producing only water as a by-product – no CO₂, no pollution. That water is then reused to create more hydrogen, forming a natural, closed-loop system. No fossil fuels, no emissions, no compromises.

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