India is driving a surge in coal-based steel capacity, with over 300 million tonnes of new blast furnace production announced or under construction. This represents a 5% increase in the past year and threatens to undermine the global shift toward cleaner production methods, according to a new report by Global Energy Monitor.

The expansion is primarily driven by India, which accounts for 60% of new blast furnace development worldwide. The country aims to more than double steel production to over 400 million tonnes annually by 2035, up from roughly 200 million tonnes today. Steel and iron manufacturing contributes 11% of global CO2 emissions, making this expansion a significant climate concern.

Electric arc furnaces using recycled steel have grown to 34% of total global production, up from 31% in 2022, but progress on decarbonisation remains slow. Report author Astrid Grigsby-Schulte warned that India's expansion plans have "the power to reverse any progress and entrench blast furnace-based steelmaking for the coming decades", calling it the biggest threat to sector decarbonisation.