The steelmaking industry must soon establish a consensus on its green steel definition against headwinds from a world that is increasingly characterized by its volatility, uncertainty, complexity and ambiguity (VUCA). This was a recurring theme with delegates during Fastmarkets’ 2025 International Iron Ore and Green Steel Summit, held June 17-19 in Barcelona.
Andreas Eichstaedt, head of research and strategy, raw materials procurement for steelmaker thyssenkrupp, said during his presentation on responding to market challenges that the steelmaking industry is at the cusp of a “mega VUCA” world, made difficult by geopolitical tensions, wars and price fluctuations.
The layered complexities of a multi-faceted world where individual market participants act on their own interests could stand in the way of converging on a common discourse, according to Paulo Carvalho, managing director at decarbonization consultancy decarbValue Limited.
Speaking at a panel on the reality of green steel in Europe, Carvalho added that the steelmaking market can draw lessons from how industry standards are delineated in parallel industries, such as hydrogen markets, whereby a global definition of green hydrogen has formed the backbone of the Green Hydrogen Standard.
Carvalho also highlighted the importance of expounding on voluntary efforts by individual participants in setting parameters, such as the launch of India’s Green Steel Taxonomy in December 2024, which categorizes green steel in terms of percentage of “greenness” of the steel below the threshold of 2.2 tonnes of CO2e (tCO2e) per tonne of finished steel, according to a release by India’s Ministry of Steel.
A trader based in Singapore who was attending the panel told Fastmarkets that there is a need for a more centralized approach in defining green steel that coalesces the opinions and requirements of vital users considering the tight timeframe for decarbonized steelmaking.
The same sentiment was echoed by José Noldin, chief executive officer of sustainable iron company GravitHY, who was also speaking at the same panel on green steel in Europe; Noldin added that the views of a microcosm of the market, which includes the buyers, sellers and a tertiary authority should form the base of discussion.
Noldin also emphasized the need for measurable parameters, such as the absolute reduction of CO2 emissions negating mass balance efforts as a “fake concept” in reducing emissions.
The reality is that in a free market world, while the widespread traction of a green steel industry is likely to fail without government support in structuring incentives and establishing deterrents, state-led efforts cannot be the end-all answer, according to Eichstaedt.
The Singapore-based trader said that the EU, with its robust regulatory framework over a more centralized steelmaking bloc, has the strongest potential in coalescing a measured approach in defining green steel in the “mega VUCA world.”
