Circular Economy can substantially reduce EU steel supply chain emissions: A quality-focused circularity assessment

Steel is strategically important for the European Union. Yet, the steel system majorly contributes to greenhouse gas emissions and resource use, which can potentially be mitigated through increased circularity. Circularity, however, is constrained by a growing surplus of low-quality steel scrap, contaminated with tramp elements. This study uses Material Flow Analysis and Life Cycle Assessment to investigate the potential of ambitious circularity measures and climate-compliant energy targets to cut emissions and conserve resources across the European Union’s steel supply chain, while addressing steel quality challenges. Results show that circularity strategies complement each other, reducing production quantities and increasing recycled content. An ambitious circular steel supply chain combined with an energy transition can decrease greenhouse gas emissions by 69%–75% compared to 2020 and can comprise up to 94% recycled steel by 2050. The findings highlight circularity’s key role in meeting global net-zero climate targets, while simultaneously increasing resource independence.