Europe's green steel market entered the new year sluggishly with limited buyer interest. Sellers expect CBAM and the phase-out of free carbon allowances to lift demand in 2026, but effects are not expected in the short term.
EFRS 2026 Executive Board Chair and Ekinciler Group CEO Fatih Keseroğlu says green steel is a measurable, verifiable, and data-driven long-term transformation process, with digitalisation playing a decisive role.
The new India-EU strategic agenda redefines steel's role in bilateral relations through decarbonisation, common standards, and end-user demand. Green hydrogen cooperation and infrastructure projects will drive long-term steel demand.
The EU proposes more flexible CO2 targets for 2035, allowing continued production of ICE and hybrid vehicles. Up to 10% of emissions can be offset using low-carbon steel, potentially creating ~1 million tonnes of annual green steel demand.
Çolakoğlu Metalurji targets net zero emissions by 2050 and a 55% emission reduction by 2030. The company says steel prices in 2026 will be shaped not only by supply and demand but also by carbon costs and regulatory compliance.
Tosyalı Holding Chairman Fuat Tosyalı says global trade has been under severe pressure for 2 years and calls for comprehensive measures that support value-added green steel production and provide strategic protection against unfair competition.
Tosyalı Holding is set to close 2025 with approximately $9 billion in revenue, recording nearly 30% growth. With 15 million tonnes of liquid steel capacity across three continents, the company targets the world's top 20.
Tosyalı achieved 2.43 million tonnes of DRI output at its second plant in Algeria in 2025, setting a new world production record. The facility uses MIDREX technology with the highest annual output from a single module globally.
European scrap processors and EAF steel producers have written to the European Commission objecting to a one-size-fits-all sliding scale label, arguing it fails to recognise the low CO2 profile of Europe's EAF industry.
TÇÜD Secretary General Veysel Yayan expects crude steel production to exceed 40 million tonnes in 2026. Türkiye's EAF-based structure provides a competitive advantage under CBAM, but renewable energy investment is critical.
CBAM is a de facto trade mechanism that redefines competition through carbon costs. Türkiye's EAF advantage is significant but hinges on decarbonising its electricity mix. The Brussels Effect is transforming steel trade globally.
ArcelorMittal officially announced a €1.3 billion EAF investment at its Dunkirk facility. The 2 million tonne capacity furnace is planned to go live in 2029, emitting three times less CO2 than a blast furnace.
Tosyalı Holding's second DRI plant in Algeria has begun commercial production. Capable of running on both natural gas and 100% hydrogen, it is the world's first FlexiDRI plant to reach commercial production.
The EU is turning to decommissioned ships as a new raw material source to accelerate decarbonisation. With 12 million tonnes of recyclable steel expected by 2033, ship scrapping could meet 15% of EU scrap consumption.
The Turkish steel sector achieved approximately $16.5 billion in exports in 2025 despite global headwinds. But 2026 will be a year of struggle — with CBAM, new EU quotas, and Chinese overcapacity reshaping the landscape.
One of Türkiye's leading steel profile producers and major exporters, Kocaer Çelik, achieved its highest-ever sales and production levels in 2025, increasing total sales volume by 17.6% and production by 26% year-on-year.
The EU requires state-aided electric vehicle manufacturers to source 70% of vehicle parts from within the EU. Public procurement in buildings, infrastructure, and transport projects must include at least 25% low-carbon steel.
As of 2026, carbon regulations, energy prices, and certification rules are shaping green steel. The global market is witnessing regional divergence rather than a unified leap forward.
Green steel is low-carbon steel produced using green hydrogen and renewable energy instead of fossil fuels. As the steel industry accounts for 7–9% of global CO₂ emissions, this production approach aims to fundamentally change the equation.
Steel producers are moving away from traditional blast furnace methods toward hydrogen-based technologies to eliminate carbon emissions. Tightening carbon regulations and supply chain pressures are accelerating the transition to green steel.