The steel industry should soon come to a consensus on the definition of "green" steel in order to withstand the headwinds from a world that is increasingly characterized by instability, uncertainty, complexity and ambiguity (VUCA). This topic was repeatedly raised with delegates at the Fastmarkets’ 2025 International Iron Ore and Green Steel Summit, held on June 17-19 in Barcelona.
Andreas Eichstaedt, head of research and strategy, Raw materials procurement for the ThyssenKrupp steel company, said during his speech on responding to market challenges that the steel industry is on the cusp of a "mega VUCA world", complicated by geopolitical tensions, wars and price fluctuations.
A multi-layered and multifaceted world where individual market participants act in their own interests may stand in the way of converging on a single discourse, according to Paulo Carvalho, managing director of Commercial decarbonization at decarbValue Society.
Speaking at a panel session on the reality of green steel in Europe, Carvalho added that the metallurgical market can learn from how industry standards are defined in parallel industries such as hydrogen markets, while defining the global green hydrogen has formed the backbone of the green hydrogen standard.
Carvalho also stressed the importance of setting out on the voluntary efforts of individual participants in setting parameters, such as the launch of the Indian green steel taxonomy in December 2024, which classifies green steel in terms of the proportion of "green" steel below the threshold of 2.2 tons of CO2 (tons CO2-eq.) per ton of finished steel, according to the Indian Foreign Ministry's steel press release.
A trader in Singapore who visited the groups told Fastmarkets what is needed for a more centralized approach in defining green steel, which brings together the opinions and requests of Vital users given the tight deadlines for decarbonized steel smelting.
The same sentiment is reflected in Jose Noldin, chief executive officer of sustainable iron company GravitHY, who also speaks on the same panel on green steel in Europe; Noldin added that the opinions of a microcosm of the market that includes sellers, buyers and tertiary authorities should be the basis of the discussion.
Noldin also emphasized the need for measurable parameters such as absolute reduction of CO2 emissions to negate the efforts of mass balance as a "fake concept" in reducing emissions.
The reality is that in a free global market, while the widespread push for a green metallurgical industry is likely not without government support in structuring incentives and creating constraints.,
