China must reduce coal-powered blast furnace steel output by over 90 million tons from 2024 levels to achieve its green steel target this year, according to researchers at the Centre for Research on Energy and Clean Air. If the country meets its goal of producing 15% of steel from electric arc furnaces, it could cut CO2 emissions by over 160 million tons, nearly equivalent to the EU steel sector's carbon footprint. 

China's crude steel output exceeded one billion tons in 2024, with 90% from traditional blast furnaces. The steel sector faces overcapacity that has driven down prices and sparked trade protectionism due to surging exports. Meanwhile, cleaner electric arc furnaces struggle with high power costs, unstable scrap supply, and financial losses.