New report: The role of scrap in steel decarbonisation

A new briefing paper jointly authored by Climate Group’s SteelZero initiative, the Institution of Structural Engineers (IStructE), and the British Constructional Steelwork Association (BCSA) explores the limits and opportunities of scrap in global steel decarbonisation.

Launched at a packed event at the Institution of Structural Engineers, the report was presented by Sameen Khan, Senior Manager for SteelZero, alongside co-authors Will Arnold (IStructE) and Michael Sansom (BCSA). It draws on a broad literature review and offers clear, practical recommendations for policymakers, designers, contractors, and clients in the construction sector.

Maximising scrap – while recognising its limits

The steel industry is responsible for 7% of global carbon emissions. Steel produced from recycled ferrous scrap can cut emissions significantly – by up to 70% compared to primary steel made from iron ore. But ferrous scrap is a globally constrained material. Around 80–85% of scrap reaching end of life is already recovered and recycled, and even by 2050, it is expected to meet only around half of global steel demand.

This means that while scrap use must continue to be maximised wherever economically possible, increasing scrap consumption in one region is unlikely to reduce global emissions overall.

The need for a dual decarbonisation strategy

To align with global climate goals, a dual approach is needed: decarbonise both scrap-based and primary steelmaking. This includes:

  • Scaling up low and zero carbon iron production
  • Decarbonising electricity supply for electric arc furnaces (EAFs)
  • Improving the quality of recycled scrap through better sorting and processing
  • Prioritising efficient use and reuse of steel in construction

Project-level carbon targets that rely solely on higher recycled content are unlikely to deliver meaningful global reductions. Instead, designers and specifiers should focus on sourcing steel from producers aligned with dual decarbonisation strategies and aim to reduce total steel tonnage used.

Read the full report

The report provides an objective overview of global ferrous scrap availability, future projections for steel demand, and implications for reducing greenhouse gas emissions from the construction sector and beyond.

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