- World’s top companies prioritise Scope 3 emissions reduction
- Global demand for low-CO2 steel projected to reach 200 mnt by 2030
The South Korean steel industry still views carbon neutrality primarily from the perspective of regulatory compliance and cost burdens. Challenges such as emission allowance costs, facility investment, rising electricity rates, and hydrogen reduction steelmaking come to mind first.
However, the global market is already operating under different standards. Carbon is no longer merely an environmental issue, but a competitive edge that determines market entry and participation in the supply chain. The steel industry is strengthening its carbon competitiveness not to avoid regulations, but to secure future markets.
The question the steel industry must now ask is simple: “How much carbon will we reduce?” is not the question, but “Which market will we pre-empt through carbon?”
SBTi: A new ticket to the supply chain
The most symbolic representation of this change is the Science Based Targets Initiative (SBTi). This is an international initiative that verifies companies’ greenhouse gas reduction targets based on scientific standards. However, it is now establishing itself as a standard of trust in the global supply chain, going beyond mere ESG certification.
As of 2026, there are approximately 13,700 companies participating in SBTi, and among them, 11,389 have completed approval for Science-Based Targets (SBT). A more significant change is the purchasing criteria of global customers. Automotive, electronics, and home appliance manufacturers are incorporating carbon emissions and reduction targets, in addition to price and quality, into their supplier selection criteria. This is because Scope 3 emissions management has become a core element of corporate competitiveness.
Ultimately, participation in SBTi is shifting from a choice made for an eco-friendly image to a prerequisite for participating in the global supply chain.
Green steel market already growing
Demand is already on the move. McKinsey forecasts that global demand for low-carbon steel will exceed 200 mnt by 2030, accounting for more than 10% of total steel demand. The driving force behind this demand expansion is global manufacturers in sectors such as automotive, construction, energy, and home appliances. These companies are pursuing Scope 3 reduction targets based on SBTi and demanding the use of low-carbon steel in their supply chains.
Ultimately, the low-carbon steel market is not a market created by government policy, but a new market shaped by customers’ carbon-neutrality strategies.
Competitive formula of steel industry changing
Until now, competition in the steel industry has evolved from production capacity to price competition. Now, it is competition for carbon neutrality. In the future, customers will not purchase steel alone. Along with the product, they will evaluate carbon emissions, supply chain sustainability, and the reliability of reduction targets.
An era has begun where carbon competitiveness, rather than production volume, and supply chain reliability, rather than price, determine corporate competitiveness.
Carbon neutrality a future market, not a cost
The steel industry has long approached carbon neutrality as a cost issue. However, the question must now be changed. The important thing is not “how much to invest,” but “how large a market to capture.”
The market is already showing the direction. The number of companies participating in SBTi is rapidly increasing, and the demand for low-carbon steel is also expanding, centered on the supply chain. Carbon has ceased to be a regulation and has become the language of the market, serving as a key criterion for determining supply chain competitiveness.
While carbon neutrality is a burden for companies that view it solely as a cost, it represents a new growth opportunity for those who recognise it as a future market. Ultimately, the winners of the future steel market will not be the companies that produce the most steel, but rather those that are the first to establish the low-carbon supply chains desired by manufacturers (clients).
Carbon neutrality is no longer a cost; it is a new competitive edge that opens up the future market.
This article is published as part of a content sharing agreement between SteelDaily and BigMint
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