ASEAN-5 Steel Sector  Decarbonization and Green Demand  

ASEAN-5 — Indonesia, Malaysia, the Philippines, Thailand, and Vietnam — is experiencing rapidly increasing demand for steel, creating a critical opportunity to shape the region’s industrial future. If managed strategically, this growth can avoid locking in decades of emissions from further investments in conventional blast furnace-basic oxygen furnace (BF-BOF) technology. Instead, the region can pursue a low-emission transition pathway by carefully planning new capacity additions, prioritizing electric arc furnace (EAF)-compatible production where feasible, strengthening domestic scrap collection and processing systems, and securing access to clean metallic inputs for primary steelmaking. 

Existing blast furnace relining cycles should be treated as strategic decision points to evaluate low-emission alternatives rather than automatically extending the life of high-emitting assets. At the same time, governments, industry and NGOs, can work together to build the market architecture needed to recognize, differentiate, and reward low-emission steel. By aligning industrial growth with low-emission steel pathways, ASEAN-5 can meet rising steel demand while strengthening industrial competitiveness and avoiding long-term carbon lock-in. 

This report identifies practical pathways for ASEAN-5 policymakers, industry, and other stakeholders to meet growing steel demand while accelerating the transition to low-emission steel. It examines how future capacity expansion, existing blast furnace reinvestment decisions, and access to scrap and green iron can shape the region’s emissions trajectory. It also outlines standards, policies, and the market infrastructure needed to recognize and reward lower-emission steel, providing governments, industry, investors, and civil society with evidence-based foundation for informed decision-making and long-term industrial competitiveness. 

Read the full report to explore the analysis and recommendations in detail.