EMSTEEL Unveils Decarbonization Strategy to Achieve Net-Zero Emissions by 2050

EMSTEEL, one of the GCC region’s largest publicly traded steel and building materials manufacturers, has unveiled an ambitious decarbonization strategy aimed at significantly reducing its greenhouse gas (GHG) emissions. The company plans to cut its absolute GHG emissions by 40% in its Steel Business Unit and 30% in its Cement Business Unit by 2030, using 2019 as the baseline year. The ultimate goal is to reach net-zero emissions by 2050.

This strategic initiative aligns with the UAE’s Net Zero by 2050 Strategic Initiative, the UAE’s Nationally Determined Contribution (NDC 3.0), and the Paris Agreement. EMSTEEL is also committed to contributing to the UAE’s goal of reducing industrial emissions by 27% by 2035 compared to 2019 levels.

To achieve these targets, EMSTEEL will focus on enhancing energy efficiency, incorporating advanced process optimization technologies, and utilizing alternative fuels and raw materials in its steel and cement production processes. The company also plans to shift to 100% clean and renewable energy to meet its electricity demands by 2030.

EMSTEEL CEO on Sustainability Commitment

Engineer Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, expressed the company’s dedication to transforming the construction and manufacturing sectors through sustainable practices. “Our decarbonization strategy not only aligns with the UAE’s Net Zero 2050 goals, but also positions EMSTEEL as a global leader in low-carbon steel and cement production. Through innovation, investment, and collaboration, we are building a more sustainable future for our industry and our planet,” he said.

Progress and Key Achievements

The steel and cement industries are among the most carbon-intensive sectors globally, contributing significantly to GHG emissions. EMSTEEL has already made substantial progress in reducing its Scope 1 and Scope 2 emissions. As of 2023, the company’s total emissions were 23% below the 2019 baseline, standing at 4.5 million tonnes of CO₂.

The company has achieved these reductions through advancements in energy efficiency, the implementation of carbon capture technologies, and the integration of clean and renewable energy solutions. Additionally, EMSTEEL has launched a groundbreaking green hydrogen project in collaboration with Masdar—the first of its kind in the Middle East and North Africa. This initiative uses green hydrogen to extract iron from iron ore, advancing sustainable steel production in the region.

Recognition and Industry Leadership

In recognition of its efforts, EMSTEEL was appointed Co-Chair of the Alliance for Industry Decarbonisation (AFID), led by the International Renewable Energy Agency (IRENA), in September 2024. The company was also named the 2024 Steel Sustainability Champion by the World Steel Association for its pioneering work in decarbonizing steel production.

EMSTEEL’s contributions were further acknowledged by the World Economic Forum, which placed the company among the top five global steel producers recognized for their sustainability efforts. In addition, the company received the Best Sustainable Manufacturing Award and the ICV Excellence Award at the ‘Make it in the Emirates Awards 2024.’

EMSTEEL’s decarbonization strategy positions the company as a key player in the global push toward sustainable manufacturing and highlights its commitment to reducing industrial emissions and promoting low-carbon technologies.