Demand for steel is expected to increase in the coming decades as population growth, industrialization, and urbanization in emerging and developing economies continue. The need for these countries to leapfrog to green steel production provides a unique opportunity for international finance institutions to support the global steel transition by:
- Acting as knowledge partners for governments to strengthen an enabling policy framework for green steel
- Supporting country roadmaps for green hydrogen
- De-risking and financing first movers in industrial production, small and medium-sized enterprises in green value chains, and utility-scale renewables
- Supporting demand for green steel through procurement strategies in IFIs’ own operations
- Supporting secondary steel production and circular business models to scale up scrap-based production.