The international company ArcelorMittal has revised its long-term strategy for reducing carbon emissions, acknowledging that the energy transition process has proven to be much more complex than anticipated. Despite this, the company reaffirmed its intention to achieve carbon neutrality by 2050, as stated in the 2025 sustainability report.
This is reported by Finway
Updated Goals and Reasons for Strategy Revision
ArcelorMittal noted that economic, technological, and geopolitical circumstances have significantly impacted the initial assumptions of its decarbonization policy. In particular, even global institutions recognize the difficulties in limiting temperature rise to within 1.5°C, highlighting the complexity of achieving set climate goals.
As a result, the company has adapted its interim targets. Based on already approved investments, ArcelorMittal forecasts a 10% reduction in carbon intensity of production by 2030 compared to 2018 levels (Scope 1 and Scope 2). This approach is more cautious than before and is based solely on projects that have already received full funding.
Key Projects and Investment Strategy
One of the central elements of the new strategy will be the modernization of the plant in Dunkirk. Earlier this year, the company approved the construction of an electric arc furnace with a capacity of 2 million tons per year, with a total budget of €1.3 billion. The commissioning of this facility is expected to significantly impact emissions reduction in the region.
ArcelorMittal also plans to implement large-scale decarbonization projects gradually, adhering to financial discipline within an annual capital expenditure budget of $4.5-5 billion. This indicates a shift towards a more pragmatic investment model.
The company is also focusing on the development of adjacent areas of the energy transition. By 2028, ArcelorMittal aims to have 2.8 GW of its own or already operational renewable energy capacities. In 2025, segments related to the energy transition accounted for 13% of the company’s revenue.
“The revision of the decarbonization strategy is a necessary step to align the company’s previous plans with the current reality, which lacks the conditions for implementing large-scale decarbonization projects. In particular, there is insufficient demand for low-carbon products, and high electricity prices negatively affect the competitiveness of electric steelmaking and make the production of ‘green’ hydrogen in Europe unviable. Other European companies will also need to revise their decarbonization targets for 2030, as previous ambitions are not realistic,” comments GMK Center analyst Andriy Hlushchenko.