Green steel: what it is and how it’s produced
When we talk about the ecological transition, we often think of sectors such as energy, transport, or construction. Yet there is an industrial field that remains crucial to everyday life and economic development: steelmaking. Steel, in fact, is not a material of the past, but one of the concrete foundations of the present.
We find it everywhere: in the infrastructure that connects cities and regions, in energy and water networks, in hospitals, in transport systems, in industrial machinery, and in the production of durable goods. It is a strong, versatile and, above all, recyclable material. For this reason, the challenge is not to replace steel with something else: the real goal is to produce it in a cleaner way.
A global industry with shifting balances
Today, global steel production is highly concentrated. China alone accounts for a huge share of the world market, while other major producers—such as India, Japan, and the United States—follow at a distance.
Europe, on the other hand, has lost part of its historical weight in the steel industry, due both to structural factors and higher energy costs. Italy nevertheless remains a relevant player within the European landscape, thanks in part to a production model that makes significant—though not exclusive—use of electric arc furnaces and scrap, meaning raw material sourced from recycling.
European policies are driving decarbonisation
For years, the European Union has been working to reduce the environmental impact of heavy industry, with steelmaking among the sectors most directly involved. This effort is being pursued through a range of different policy instruments.
One of the main measures is the ETS system (in place since 2005), which puts a price on emissions and encourages companies to reduce them. More recently, the CBAM (adopted in 2022) aims to prevent production from shifting to countries with less stringent climate rules by applying a “carbon cost” to certain imports as well.
In practical terms, the direction is clear: in the near future, it will become increasingly difficult to compete in the market without measurably reducing the climate footprint of products.
What “green steel” really means
The term “green steel” can be misleading. It does not refer to a new material, nor to a “special” type of steel from a technical standpoint: it is the same steel as always. What changes is the production process.
The traditional blast-furnace route relies on iron ore and fossil fuels, in particular coal converted into coke. In this process, coal is used not only as an energy source but also as a chemical agent needed to convert iron ore into metallic iron and then into pig iron. The result is a highly emissive production cycle, with a significant impact in terms of CO₂ emissions and related environmental and health consequences.
The most widespread and practical alternative today is the electric arc furnace, which can use ferrous scrap as its raw material. This means starting from material that already exists and has been recovered, reducing the use of virgin resources and significantly lowering emissions. The benefit becomes even greater when the electricity used comes from renewable sources.
Why the path is set (but not automatic)
Electric arc furnaces are one of the key tools for making steelmaking more sustainable. They are not a “magic solution” on their own, because full decarbonisation requires a combination of measures: clean energy, process optimisation, efficient recycling supply chains, logistics, traceability, and coherent industrial choices.
However, they are a crucial step. And they become even more important at a time when regulatory and market pressure is increasing: more and more customers—especially in industrial and infrastructure sectors—are asking for materials with a reduced and verifiable environmental impact.
PLUS™: our green steel solution for a more responsible supply chain
PLUS™ sustainable steel with a reduced carbon footprint
To respond to the growing demand for materials with a lower environmental impact, CPC INOX has developed PLUS™, a range of low-impact stainless steel semi-finished products designed for modern industry. Thanks to the capabilities of our service center to source raw materials from multiple suppliers, PLUS™ includes strips, bars, sheets, and tubes that combine high-quality performance with a significant reduction in emissions compared to conventional stainless steel.
The main advantage of PLUS™ is its lower carbon footprint, calculated in accordance with the international standard ISO 14067:2018. For the same product, this can lead to a reduction of up to 90% in total CO₂ emissions (Scopes 1, 2 and 3, “cradle to gate”) compared to the global average for stainless steel.
This solution is part of CPC INOX’s sustainability journey, offering companies a concrete option to reduce the carbon footprint of their projects without compromising quality, compliance with environmental regulations, or market competitiveness. The use of low-climate-impact steels is increasingly requested in sustainable supply chains, supporting ESG goals and enabling more transparent communication with customers and stakeholders.
For us, green steel means one simple thing: the same material, but a better way to produce it and choose it.