2nd Worldsteel LCA Conference Concludes in Qingdao

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Global Steel Industry Takes Critical Step Toward Low-Carbon Transition: 2nd World Steel Association Life Cycle Assessment Conference Concludes in Qingdao
— Releases "Qingdao Declaration on Decarbonizing Steel Across Full Life Cycle"; 16 Countries' Enterprises Sign Technology Collaboration Memorandum

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QINGDAO, July 11, 2025 – The three-day 2nd World Steel Association (worldsteel) Life Cycle Assessment (LCA) Conference concluded today in Qingdao, uniting over 160 delegates from steelmakers, research institutions, and policymakers across 16 nations. Under the theme "Full Supply Chain Decarbonization and Standardization Synergy," the event unveiled the Qingdao Declaration on Decarbonizing Steel Across Full Life Cycle (hereinafter "the Declaration"), outlining a 2030 technology roadmap and standardized collaboration framework for the sector. Liu Jian, Chairman of the China Iron and Steel Association (CISA) and HBIS Group, Edwin Basson, Director General of worldsteel, and other industry leaders delivered keynote speeches.

Key Outcomes: Three Technological Pathways and Standardization Breakthroughs

1. Scaling Up Hydrogen-Based Direct Reduced Iron (DRI) Technology

HBIS Group announced that its 1.2 million-tonne hydrogen metallurgy demonstration project in Zhangjiakou, Hebei Province, has achieved continuous stable operation, cutting CO₂ emissions per tonne of steel by 72% compared to traditional blast furnace routes. According to the Declaration, global hydrogen-based DRI capacity will rise from 3% to 15% by 2030, with China, the EU, and India prioritized for expansion. Worldsteel simultaneously launched the development of an international standard for LCA Methodology for Hydrogen-Based Steelmaking, targeting draft completion by 2026.

2. Significant Growth in Electric Arc Furnace (EAF) Short-Process Production

CISA data revealed that EAF steel output accounted for 17.8% of China’s total in H1 2025, up 2.3 percentage points year-on-year. The Declaration sets a target to lift global EAF short-process share to over 40% by 2030, with the EU and Americas aiming for 60%+. Baowu Group, Nucor, and other firms pledged that 90% of new EAF capacity additions in the next five years will be powered by renewable energy.

3. Accelerating Commercialization of Carbon Capture, Utilization, and Storage (CCUS)

During the conference, Baowu Group and BASF signed an agreement to build the world’s largest steel-sector CCUS demonstration project at Baowu’s Zhanjiang plant, designed to capture 2 million tonnes of CO₂ annually for methanol synthesis and enhanced oil recovery. Worldsteel estimates that full deployment of CCUS by the top 20 global steelmakers could reduce cumulative emissions by 1.2 billion tonnes by 2030.

Standardization Collaboration: Addressing "Carbon Tariff" Barriers

In response to evolving international trade rules such as the EU’s Carbon Border Adjustment Mechanism (CBAM), the conference reached multiple standardization agreements:

• Data Reciprocity: China’s Steel EPD Platform initiated pilot interoperability with the EU’s PEF and Japan’s ILCD environmental product declaration systems, covering 10 mainstream products including hot-rolled coils and cold-rolled galvanized sheets.

• Method Harmonization: A 15-nation expert task force was established to resolve key discrepancies in raw material boundaries and data quality requirements under the Steel LCA Core Methodology.

• Capacity Building: Worldsteel unveiled a $50 million "Low-Carbon Technology Transfer Fund" to support developing-world steelmakers in LCA training over three years.

Cross-Sector Synergy: Steel-Home Appliance Low-Carbon Supply Chain Alliance Formed

At the closing ceremony, HBIS Group, Haier Group, and Midea Group signed the Memorandum on Low-Carbon Supply Chain Collaboration for Home Appliance Steel, committing to:

1. Develop LCA methodologies for home appliance products by 2026, covering 30 parameters such as hydrogen purity in steel smelting and fuel types during transportation;

2. Achieve 100% traceability for green steel used in appliances by 2028;

3. Co-establish a "Steel-Appliance Joint Lab" to research next-gen low-density high-strength steel and paint-free eco-friendly panels.

Li Huagang, Senior Vice President of Haier Group, stated, "The carbon label on a future refrigerator will detail emissions from every stage, from iron ore mining to recycling."

Industry Voices: From "Cost Competition" to "Value Co-Creation"

"Decarbonization is not an option—it’s a survival imperative," emphasized Edwin Basson in his keynote. Worldsteel models project that without accelerated emissions cuts, the global steel supply chain could face $2.3 trillion in CBAM-related costs by 2050.

Wang Xindong, Deputy General Manager of HBIS Group, proposed a "technology-standard-market" triple-drive model: "By quantifying environmental value through LCA, low-carbon steel can command a 5–15% price premium—the ultimate incentive for R&D investment."

Backgrounder

• Worldsteel LCA Conference: Held biennially since 2023, the inaugural event in Brussels focused on establishing LCA rules for steel products.

• China’s Steel Decarbonization Progress: As of June 2025, 24 Chinese steelmakers had published EPD reports covering 85% of the nation’s crude steel capacity; cumulative investment in hydrogen metallurgy, EAF short processes, and CCUS exceeded $42 billion (RMB 300 billion).

• Global Policy Pressures: The EU’s CBAM, set for full implementation in 2026, will impact 40% of China’s steel exports to Europe across six high-emission sectors.

Closing

The Qingdao Conference marks the global steel industry’s shift from "isolated technological breakthroughs" to "systemic supply chain transformation." As implementation guidelines for the Declaration take shape, an LCA-driven, standardization-leveraged industrial green revolution is reshaping global steel competitiveness.

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