Seeing the bigger picture: Pathways to carbon neutrality in the hard‐to‐abate sector–insights from a field study

Abstract Reducing carbon emissions in the hard‐to‐abate sector is crucial yet challenging for achieving carbon neutrality. This study explores pathways to carbon neutrality in steel industry using Carbon Capture and Utilization (CCU) technology. Employing a design science research approach anchored in the Natural Resource‐Based View (NRBV), this study examines the intervention, mechanisms, and outcomes of CCU technology implementation within a leading steel manufacturing facility. The intervention led to an average CO 2 reduction of around 9% and economic benefits of around $89,825 per month from the pilot project. This study extends to the cement, oil and gas, and fertilizer industries, enhancing the generalizability of its findings. It demonstrates that more than a technological shift, CCU technology adoption represents a comprehensive transformation, encompassing process, product, and administrative innovations. The research also highlights key challenges and trade‐offs, including safety concerns, spatial constraints, and integrating new processes into existing frameworks. Emphasizing the need to build internal and external capabilities, it underscores process modifications, innovative ways of CO 2 utilization, and broad stakeholder collaboration as critical factors. Ultimately, this study advances the understanding of viable pathways for CO 2 emission reduction through CCU technology.