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Ukraine’s Steel Industry Embraces European Path to Decarbonisation

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Europe 16 Oct 2025 01:09 PM IST GMK Centre

Ukraine’s steel industry is set to undergo a major transformation as it moves toward European-style decarbonisation, aligning with the EU Green Deal and Carbon Border Adjustment Mechanism (CBAM) standards to ensure long-term competitiveness in global markets.

The strategy, outlined by Ukraine’s Ministry of Economy and steel industry associations, focuses on reducing CO₂ emissions, modernising production technologies, and integrating renewable energy and hydrogen-based processes in steel manufacturing.

Ukraine plans to collaborate closely with EU institutions and financial bodies, including the European Bank for Reconstruction and Development (EBRD), to secure funding for low-carbon projects. Key steel producers like Metinvest and ArcelorMittal Kryvyi Rih have already begun pilot projects involving electric arc furnaces (EAFs) and green hydrogen trials.

The initiative aims to bring Ukraine’s steel exports in line with European climate standards, safeguarding market access and promoting sustainability.

Experts note that adopting a European-style decarbonisation model will not only reduce emissions but also create jobs, attract investment, and support post-war industrial recovery positioning Ukraine as a future hub for green steel in Eastern Europe.