After several years of growing optimism, the global green steel and green iron sector is entering a pivotal moment, according to the Leadership Group for Industry Transition (LeadIT).
Momentum slowed in 2025, with new project announcements captured in LeadIT's Green Steel Tracker falling from a peak of 15 projects in 2021 to just two in 2025. Planned primary green steel production capacity for 2050 currently represents less than 2%* of today's total global steel production. Despite the slowdown in announcements, 2026 is set to be a decisive year for delivery.
The Green Steel Tracker identifies Stegra’s Boden project in Sweden as the most significant near-term milestone in 2026. It represents the first potential full-scale commercial commissioning of green steel. Several pilot and demonstration projects are also scheduled to advance this year including in Germany and the United States.
“Successful commissioning of Stegra in Boden in 2026 and the roll-out of longer-term projects in the Hybrit alliance of SSAB, LKAB and Vattenfall, alongside pilot projects globally, will impact the sector in the coming years. These projects will influence confidence and the pace of transition not just in Sweden and not just in steel production but internationally and across industry,” said Per Andersson, head of secretariat, LeadIT.
However, the Green Steel Tracker shows that delays are common among projects with publicly reported commissioning dates, while limited transparency makes it difficult to assess timelines for many others. In 2025, several high-profile projects, particularly in Europe, were paused or cancelled, as shown below.
“Policy support to get first-of-a-kind green steel projects up and running can deliver benefits far beyond any single plant by accelerating learning, proving the technology at scale, and helping create early markets and confidence across the entire sector."
Aaron Maltais, LeadIT’s Policy Lead.
LeadIT’s analysis of tracked projects indicates that planned primary green steel capacity by 2050 currently totals 28Mt/yr, alongside 18Mt/yr of green iron used as feedstock for steelmaking. These volumes represent only a small fraction of today’s 1 8 billion tonnes per year of global steel production, including both primary and scrap-based output. This underscores the scale of ambition still required to decarbonize the sector.
Progress on the ground remains limited. At present, only around 270kt/yr of green iron capacity and 60kt/yr of green steel capacity are operational, meaning only a small share of announced projects has reached production.
Despite falling short of emissions reduction targets so far, incumbent global steelmakers continue to signal commitment to decarbonization, even as they face rising costs, weak demand and uncertain policy environments. Future policy intervention may prove decisive in sustaining momentum until green steel becomes cost-competitive at scale.
“Policy support to get first-of-a-kind green steel projects up and running can deliver benefits far beyond any single plant by accelerating learning, proving the technology at scale, and helping create early markets and confidence across the entire sector,” said Aaron Maltais, LeadIT’s Policy Lead.