Controlling greenhouse gas emissions needs to be seriously addressed before the middle of this century, given the increasing risk of extreme weather. Climate issues are consistently ranked among the top three global risks by the World Economic Forum, underscoring the need for joint action across sectors.
Controlling emissions from the steel industry is a key focus due to its central role in development, from infrastructure and manufacturing to the automotive sector. However, this sector contributes approximately 7–9 percent of global CO₂ emissions, making it one of the most difficult industrial sectors to decarbonize.
Currently, approximately 70 percent of the world’s primary steel is still produced using coal-fired Blast Oxygen Furnaces (BOFs). Meanwhile, recycled steel is produced in Electric Arc Furnaces (EAFs), which use electricity and can produce lower emissions. This technological difference affects the emission intensity and transition pathways of each country, particularly between developed and developing nations.
“Steel decarbonization is not just about replacing technology, but rather a comprehensive system shift influenced by energy systems, policies, and industry readiness,” said Jannata Giwangkara, Indonesia Country Lead for the Climateworks Centre.
This issue was discussed at the exclusive short course “Indonesian Net-Zero Steel Pathways 2026,” organized by SBM ITB and the Center for Policy and Public Management (CPPM) in Bandung (February 5). This program is part of SBM ITB’s commitment to supporting the sustainability agenda and low-carbon industrial transition in Indonesia.
The Net-Zero Steel Pathways Cohort 2026 program was implemented in four sessions. On February 5, 2026, CPPM SBM ITB held Live Session #1, themed “Foundations of Net Zero Steel.” This session discussed the global and national context of climate change, the steel industry’s emissions baseline, industry challenges, and the drivers of decarbonization.
In addition to technological challenges, the steel industry also faces pressures from the market, policy, financing, and infrastructure readiness. On the other hand, this situation opens up opportunities for developing countries, including Indonesia, to adopt cleaner industrial pathways.
“Going forward, the issue of carbon footprints will increasingly become a market demand, with carbon footprint verification becoming a crucial part of the global supply chain,” said Jannata.
This discussion provided participants with an initial foundation for understanding the complexities of the steel industry transition and its relevance to Indonesia’s net-zero target.
