What it takes to build a low-carbon steel corridor
The Middle East and Europe are shaping a low-carbon steel corridor. Explore what businesses need to turn this cross-regional opportunity into reality.
The emerging opportunity
Steel is central to global growth – powering construction, transport, and manufacturing. Yet, traditional steelmaking is a carbon-intensive industrial process, responsible for 7–8 per cent of global CO₂ emissions. As demand rises, so does the need to decarbonise this sector.
Europe, with its mature steel market, is potentially at a turning point. Many of its coal-based furnaces are nearing the end of life, creating an opportunity to adopt lower-carbon technologies such as electric arc furnaces and hydrogen-based iron production. Meanwhile, the Middle East is expanding its role as a global low-carbon steel production hub – supported by abundant energy resources and significant investment in modern steel complexes.
Together, these regions could form a low-carbon steel corridor, linking supply and demand in ways that strengthen competitiveness and support long-term industry transformation.
The realities for businesses
Seizing this opportunity will not be straightforward. Businesses across the value chain face critical questions as they plan investment and supply strategies:
- How can projects be funded competitively, given the scale of capital required?
- How can large-scale financing be structured across multiple parties and instruments?
- How can sustainability requirements be managed across different jurisdictions?
- How can processes be aligned across borders – from documentation and FX to trade and logistics?
- And most importantly, how can strategies be turned into actionable, bankable projects?
These questions reflect the real-world pressures facing steelmakers, traders, and industrial companies today.
How Standard Chartered can support businesses
As a global bank with deep expertise across both Europe and the Middle East, Standard Chartered is well placed to support businesses navigating these challenges. We bring:
- Deep industry experience across Metals and Mining and low carbon solutions.
- End-to-end financing capabilities – spanning project finance, sustainable bonds and loans, trade finance, working capital and risk management.
- Sustainability expertise – helping companies align with evolving standards in Europe and the Middle East.
- Global investor access – connecting businesses to liquidity through partnerships with multilaterals, sovereign funds and institutional investors.
- Cross-border delivery – one-relationship approach across over 35 markets, simplifying processes in financing and trade.
- Proven execution track record – structuring and delivering innovative transactions across hard-to-abate sectors.
Partnering to enable industrial transformation
The low-carbon steel corridor highlights how industries can collaborate across regions to adapt and compete in a changing global market. By supporting businesses in overcoming financing, regulatory and cross-border complexities, we are committed to enabling practical pathways to help facilitate the transition.
Learn more about our financing solutions for industry transformation.
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Standard Chartered has an important role to play in supporting our clients, sectors and markets to deliver net zero, but to do so in a manner that supports livelihoods and promotes sustainable economic growth. We currently provide financial services to clients, sectors and markets that contribute to greenhouse gas emissions however we’re committed to net zero in our own operations by 2025 and in our financed emissions by 2050.