From 27-29 August, the Mitigation Action Facility participated in the Global Knowledge Exchange on Low-Carbon Steel, a high-level event aimed at advancing discussion and innovation in steel decarbonisation. The event was held in Pohang, South Korea, and hosted by the United Nations Industrial Development Organisation (UNIDO), the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea, and the City of Pohang. Event organisation was supported by the Climate Club’s Global Matchmaking Platform, a partner with whom the Mitigation Action Facility has previously collaborated, including on UNIDO’s NDC 3.0 Guidebook and the COP30 Working Group on Green Industry Support.
Mitigation Action Facility representation in South Korea
Pär Gebauer, lead for the Industry Sector at the Technical Support Unit (TSU), represented the Mitigation Action Facility at the event. Drawing on the Mitigation Action Facility’s experience and insights, Pär contributed to discussions on policy, finance, and technical solutions for steel decarbonisation.
Event highlights
The event provided a platform policymakers, practitioners, researchers, and financiers to exchange ideas on overcoming technological, policy, and financial challenges in the steel sector.
A key moment was the panel discussion on Mobilizing Finance for Steel Decarbonization, which explored financial instruments, public-private partnerships, and blended finance mechanisms to improve access to capital for low-carbon steel investments. Pär presented the Mitigation Action Facility’s approach to unlocking investments in decarbonisation projects and how it could be applied across different steel production pathways and socio-economic contexts. Representatives from the EBRD and IFC emphasized the importance of collaboration between financial institutions and public-private sector actors.
Lessons learnt for steel decarbonisation
A key takeaway was that green hydrogen is unlikely to become competitively priced in most countries in near term. Therefore, it is more promising for the Direct Reduced Iron (H2-DRI) route rather than the Blast Furnace route. In many country contexts, immediate emissions reductions can be achieved by focusing on:
- Scrap utilisation,
- Energy efficiency measures, and
- Maximising renewable energy use.
This aligns with the Mitigation Action Facility’s steel project in India, currently in preparation (Detailed Preparation Phase, DPP), which aims to integrate renewable energy, scrap and Best Available Technologies (BAT) in steel manufacturing.
Supporting partner countries
Emerging markets and developing economies (EMDEs) have a strong need for green steel investments to meet growing industrial demand. As steel production is the largest contributor to industry emissions, decarbonising this sector remains a key focus of the Mitigation Action Facility’s efforts.
Learn more about our ongoing initiatives:
- India Steel – Catalysing the decarbonisation of Indian steel
- South Africa Steel – Accelerating South Africa’s steel decarbonisation
Next steps and partnerships
Our participation in the summit strengthened connections with potential partners, including development organisations, governments, and philanthropic institutions interested in future collaboration. Following the event, the Mitigation Action Facility met with the Global Industry Hub to explore possible avenues for supporting cement industry decarbonisation in selected African countries.
At the Mitigation Action Facility, we remain committed to advancing industry sector decarbonisation worldwide.
More resources about our industry sector activities:
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