Despite significant challenges and the loss of production capacity due to the ongoing war, Ukraine’s steel industry remains a vital part of the economy with significant potential for sustainable transformation.
Our policy brief “Ukraine’s Steel Sector: State of Play and Pathways to a Greener Future” provides an in-depth analysis of the current state of Ukraine’s steel industry. It examines the impact of the war on production capacity, the distribution of production technologies and the sector’s CO₂ emissions profile, while exploring viable pathways for decarbonisation.
In the short to medium term, investment in the scrap-based Electric Arc Furnace (EAF) route could reduce CO₂ emissions by 43% by 2035, requiring EUR 1.1-2.0 billion. In addition, the introduction of hydrogen-based Direct Reduction of Iron (H₂-DRI) after 2030 could increase the reduction to 63% by 2035 (14.5 MtCO₂) with an additional investment of EUR 2.0-5.3 billion. A favourable investment environment with strong financial mechanisms and de-risking policies will be essential to attract funding for these low-carbon projects.
What is a Policy Briefing?
Similar to Policy Papers, current or possible future policy topics are discussed. The economic analysis and policy recommendations are presented in a concise manner, focussing on the core arguments and results.