The steel industry accounts for 7% of global carbon emissions, making low-carbon steel crucial for decarbonization. 

Nippon Steel recently set a world record by cutting emissions by 43% using green hydrogen, though commercialization remains a challenge due to scalability and hydrogen costs. 

China’s Baowu Steel has reduced emissions by over 20% and is advancing commercialization, while South Korea’s POSCO aims to launch hydrogen-based direct reduced iron (DRI) steelmaking by 2028. 

Analysts note that Japan lags 5-10 years behind Europe, China, and South Korea in DRI commercialization, but competition for leadership in green steel is intensifying.