Decarbonization of Industrial Sectors: Steel and Aluminum

Abstract

Governments and industries face challenges in tracking Scope 3 emissions from aluminum and steel production due to fragmented data and regional energy disparities. These sectors, vital for infrastructure and clean energy, contribute significantly to global GHG emissions via coal-dependent, energy-intensive processes. This study employs Terralytiq’s platform, integrating Climate TRACE data, to create a granular emissions dashboard from raw material extraction to final production. We worked with Terralytiq to ensure that the platform is robust and addresses supply chain gaps and regional variations such as integrating China’s province specific electricity pricing to improve accuracy. Through the dashboard, we are able to see the global producers in these industries and understand the stark contrasts in emission factors between high-intensity regions (e.g., India, Bosnia) versus low-carbon leaders (e.g., Norway). The study also includes case studies on ArcelorMittal and Hillside Aluminum to demonstrate the dashboard’s utility, analyzing CO2 reductions and cost impacts of initiatives like green hydrogen adoption, renewable energy integration, and process electrification. Ultimately, the findings underscore that achieving net-zero in heavy industries is not merely a technological or financial challenge but a systemic one requiring coordinated action. The path forward demands ambition, accountability, and a commitment to equitable transitions—particularly in regions where industrial activity intersects with socioeconomic development and environmental justice. As global demand for aluminum and steel continues to rise, this report serves as a call to transform these industries from climate liabilities into pillars of a sustainable, low-carbon economy.