Future Outlook for the Decarbonisation of the Steel Industry in Asia

This report presents the outcomes of Phase 1 (2024–2025) of a research project examining the future outlook for the decarbonisation of the steel industry in Asia, with particular attention to ASEAN Member States and India. It analyses recent trends in crude steel production, energy intensity, CO₂ emissions, and capacity expansion, highlighting structural shifts in production routes as well as emerging challenges related to overcapacity, technology selection, and emissions reduction pathways.

As part of the analytical work, a pilot demand-driven model was developed to assess the relationship between economic growth, steel product demand, and crude steel production. This model provides a quantitative basis for understanding long-term developments in steel demand and associated emissions in the region. In parallel, the project prepared draft Towards a Net-Zero Steel Industry in Asia Guidelines, which promote a PDCA-based approach to energy efficiency improvement and include an updated Technologies Customised List (TCL) reflecting recent data and technological progress.

The report summarises the analytical framework, key findings, and advocacy activities undertaken during Phase 1, and identifies priorities for subsequent research and policy engagement to support the steel industry’s transition toward decarbonisation in Asia.