Decarbonizing Steel and Cement: Practical Pathways to a Low-Carbon Future

Cement and steel together generate nearly 20% of global CO₂ emissions, making them two of the hardest sectors to decarbonize. Yet new technologies and stronger policy frameworks are paving the way for cleaner production.

At Climate Week NYC 2025, experts from Stegra (Sweden) and Brimstone (USA) — two pioneers in low-carbon materials — shared how innovation and partnerships are reshaping the future of heavy industry.

Green Steel Powered by Hydrogen

Stegra is transforming the steelmaking process by replacing coal with green hydrogen in direct reduction. This method cuts up to 95% of total CO₂ emissions from steel production. Its new 2.5-million-ton-per-year plant in Northern Sweden benefits from abundant, low-cost hydropower, ensuring sustainable and affordable operations.

Key partners such as Mercedes-Benz and German equipment manufacturers are supporting Stegra through equity investment and long-term offtake agreements. Meanwhile, the EU Carbon Border Adjustment Mechanism (CBAM) is improving the market competitiveness of green steel.

Low-Carbon Cement from Silicate Minerals

Brimstone tackles cement’s process emissions by eliminating limestone from production. Using calcium silicate rocks, the company produces ordinary Portland cement identical in performance but with around 60% fewer emissions.

Its process also yields supplementary cementitious materials and alumina, creating diversified revenue streams. With backing from Amazon’s Climate Pledge Fund, Brimstone aims to scale production and reach cost parity with conventional cement.

A Shift Toward Sustainable Materials

Industry leaders agree that demand for green steel and low-carbon cement is accelerating as carbon pricing and corporate net-zero goals take effect. When costs are shared across the value chain, the price difference in finished products becomes minimal — turning sustainability from a premium feature into a market standard.

Source: Columbia Business School – Climate Knowledge Initiative, Climate Week NYC 2025