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Accelerating South Africa’s steel decarbonisation: advancing a carbon-neutral pathway

November 4, 2025
Image: Participants from across South Africa’s steel value chain during a fact-finding workshop held in Johannesburg in October. © UNIDO

The United Nations Industrial Development Organization (UNIDO), Guidehouse Germany, and the Industrial Development Corporation (IDC) convened a series of high-level stakeholder engagements in South Africa as part of their project preparation (Detailed Preparation Phase, DPP) for the proposed project “Accelerating South Africa’s Steel Decarbonisation”. Developed for submission to the Mitigation Action Facility, the initiative represents an important step towards supporting South Africa’s transition to near-zero emission steel production.

By combining technical assistance, the development of a dedicated financial mechanism, and targeted policy support, the project aims to strengthen industrial competitiveness, support the achievement of national climate commitments, and unlock new export opportunities in the rapidly growing global market for low-carbon steel.

Throughout the week, bilateral meetings with policymakers, private sector actors, industry associations, and steel producers, as well as a multi-stakeholder workshop, brought together representatives from across the value chain. Participants included actors from civil society, energy, logistics, and technology sectors. Discussions focused on identifying barriers and enabling conditions for decarbonisation, with particular attention to infrastructure readiness, renewable energy, and green hydrogen, and the role of policy frameworks, regulation, and standards.

Impressions from the South African steel industry. © ArcelorMittal South Africa

Emphasising the importance of continued support to the sector, Mr. Charles Dednam, Secretary General of the South African Iron and Steel Institute, noted:

As the economy grows, the steel industry needs consistent support to maintain its essential role in building infrastructure, driving industrial growth, and supporting long-term national prosperity.“

Stakeholders also highlighted the importance of inclusive approaches, stressing the need to systematically integrate gender and social considerations, as well as small- and medium-sized enterprises (SME) participation, throughout project implementation.

Overall, the engagements reflect the co-creation approach promoted by the Mitigation Action Facility, ensuring that projects are country-driven, stakeholder-informed, and designed to deliver transformational change.

Learn more about the project in the newly published factsheet, which provides an overview of the project’s objectives, approach, and expected impacts.