COP31 and the Circular Economy: The Future of Sustainable Steel Production
The circular economy in steel aims to extend product life, return scrap to production and reduce raw material losses. Making productive use of industrial by-products and improving resource efficiency are also central to this approach.
COP31, taking place in Antalya, Türkiye, from 9 to 20 November 2026, provides an international platform for addressing industrial climate action. Circular economy practices support this transition by helping reduce the environmental impacts associated with material use. UNFCCC
Advancing sustainable steel production requires an integrated assessment of recycling, product design, production technologies, energy sources and supply chains.
What Is the Circular Economy?
The circular economy is an approach to production and consumption that keeps products and materials valuable for longer, improves resource use and aims to prevent waste.
In a linear economy, resources are extracted, manufactured into products and eventually discarded. A circular economy seeks to keep materials in use through durable design, maintenance, reuse and recycling. Ellen MacArthur Foundation
Across the steel value chain, this approach includes four main practices:
- Reduce: Deliver the same function with less material and prevent production losses.
- Reuse: Use suitable steel products or components again without remelting them.
- Remanufacture: Restore used products through industrial processes to meet defined performance requirements.
- Recycle: Melt steel scrap to produce new steel. worldsteel.org
How Are COP31 and the Circular Economy Connected?
COP31 is the 31st Conference of the Parties to the United Nations Framework Convention on Climate Change. Emissions reduction, adaptation, climate finance and international cooperation are core areas of the UN climate process. UNFCCC
The circular economy can support climate objectives through better material and resource management:
- Extending product life can reduce demand for resources needed to manufacture replacement products.
- Preventing material losses can lower raw material requirements per unit of usable output.
- Recycling scrap can meet part of the demand otherwise supplied by primary raw materials.
- Using suitable by-products can reduce natural resource consumption in other production processes.
These connections explain the relevance of circularity to climate action. They should not be interpreted as decisions adopted at COP31.
Why Does the Circular Economy Matter for Steel?
Steel is an essential material in construction, automotive manufacturing, energy, machinery and infrastructure. Its durability and ability to be recycled repeatedly make it relevant to circular production models.
Circular economy practices in steel can support:
- Material efficiency: Obtaining more usable output from production inputs.
- Resource security: Diversifying supply options through suitable scrap and recovered materials.
- Waste reduction: Preventing production residues and recovering suitable materials.
- Longer product life: Improving durability, maintenance, repair and reuse.
- Emissions reduction: Lowering material demand and the need for certain production stages.
The benefits depend on material quality, technology, energy sources and the conditions of each application.
How Is Steel Recycled?
Steel recycling returns manufacturing scrap and end-of-life steel products to production as raw materials.
The Main Stages of Steel Recycling
- Collection: Manufacturing scrap and end-of-life steel products are collected.
- Sorting and classification: Scrap is assessed by material type and chemical characteristics.
- Preparation: Sizing and separation processes prepare the material for production.
- Melting and composition control: Scrap is melted and its chemistry adjusted to meet the target steel specification.
- Casting and forming: Steel is processed into forms used to manufacture new products.
Electric arc furnaces are among the main technologies used in scrap-based steelmaking. Environmental performance depends on scrap quality, energy consumption and the sources used to generate electricity.
Can Steel Be Recycled Indefinitely?
Steel can be recycled repeatedly, but every scrap grade is not directly suitable for every steel specification.
Alloy composition, coatings and unwanted residual elements can affect the properties of the resulting steel. Effective recycling therefore requires sorting, traceability and chemical composition control alongside high collection rates.
Industrial Symbiosis and the Use of By-products
Industrial symbiosis involves using suitable by-products, energy or water flows from one business as resources for another.
In the steel industry, this approach can help businesses coordinate material and energy use more efficiently.
Which Steelmaking Materials Can Be Recovered?
Recovery options depend on the production route and the characteristics of each material:
- Slag: Depending on its type and suitability, slag may be used in construction materials or road applications.
- Metal-bearing dust and residues: Appropriate recovery processes can recover their metal content.
- Waste heat: Where technically and economically viable, recovered heat can supply other processes.
- Process water: Water may be reused in suitable applications following treatment and quality checks.
Slags, dusts and process residues do not all have the same properties. Decisions must consider chemical composition, physical performance, environmental suitability and applicable regulatory requirements.
How Can the Circular Economy Reduce Carbon Emissions?
Circular practices can help reduce greenhouse gas emissions by lowering primary material demand and avoiding unnecessary production. In steel, this potential includes material efficiency, reuse and remanufacturing alongside recycling. OECD
However, an increase in recycling does not automatically produce an equivalent reduction in total emissions. Results depend on:
- The emissions intensity of electricity and fuels.
- Scrap collection, transport and preparation.
- Production technology and process efficiency.
- Steel quality requirements.
- Total production volumes and product service life.
Environmental benefits should be assessed through life cycle assessment and comparable emissions calculations. Emissions per unit of product and total emissions should be monitored separately.
What Is the Difference Between Resource and Energy Efficiency?
| Concept | Main objective | Example in steel production |
|---|---|---|
| Resource efficiency | Deliver the same function using fewer resources | Reducing cutting losses or reusing water |
| Energy efficiency | Perform the same task using less energy | Improving furnace and motor energy performance |
Energy efficiency is part of resource efficiency in its broader sense. In practice, monitoring materials, water and energy separately makes the effects of improvements easier to understand.
An intervention may save materials while increasing energy requirements. Production decisions should therefore consider all relevant resource flows together.
How Does the Circular Economy Support Sustainable Supply Chains?
Circular supply chains help return materials to productive use after manufacturing and consumption.
Priorities for the steel industry include:
- Traceable sourcing: Recording the origin of scrap and recovered inputs.
- Quality management: Matching material composition to production requirements.
- Collection partnerships: Coordinating material flows with customers and recycling businesses.
- Efficient logistics: Assessing transport distances and associated emissions.
- Supplier assessment: Considering working conditions and other social impacts alongside environmental performance.
Recycled content is one indicator of supply chain sustainability. It does not, on its own, describe the full environmental and social performance of a product.
How Does Digitalisation Support the Circular Economy?
Digital systems can make resource use more visible, helping identify losses and inform improvement decisions.
Applications of Data Analytics and Machine Learning
- Material flow monitoring: Tracking raw materials, products and residues at each production stage.
- Process optimisation: Analysing relationships between operating parameters, energy consumption and material losses.
- Predictive maintenance: Using equipment data to identify signs of failure and plan maintenance.
- Quality control: Comparing scrap and product data against target specifications.
- Product information sharing: Communicating material composition and life cycle information through approaches such as digital product passports.
Machine learning applications depend on data quality and validation under actual production conditions. Environmental benefits arise when the resulting insights translate into measurable resource savings.
Are the Circular Economy and Zero Waste the Same?
The circular economy and zero waste support each other, but they do not have identical scopes.
Zero waste focuses on preventing waste and keeping resources from becoming waste. The circular economy provides a broader economic framework covering product design, use, maintenance, repair, reuse and material circulation.
Separating waste at a production facility can support both approaches. Designing a steel component so that it can be dismantled and reused in another project introduces circularity at the product design stage.
Priorities for Steel Circularity Around COP31 and Beyond
Progress in circular steel production requires measurable implementation. Practical priorities for businesses include:
- Map material flows: Record raw material inputs, products, by-products and waste.
- Prevent losses at source: Improve processes and designs to increase material yield.
- Improve scrap quality: Strengthen sorting, analysis and traceability.
- Assess resource-sharing opportunities: Develop suitable partnerships for by-products, water and waste heat.
- Measure results: Track material yield, energy consumption, water use and emissions consistently.
In the context of COP31, circularity connects industrial climate objectives with the practical management of materials and resources.
Frequently Asked Questions About COP31
Frequently Asked Questions About COP31
Does Steel Recycling Reduce Carbon Emissions?
Steel recycling can help lower emissions by reducing primary raw material requirements and associated processing. The actual benefit depends on production technology, energy sources, scrap quality and logistics.
Is Recycled Steel Lower in Quality?
Recycled content does not inherently mean lower quality. Product quality depends on managing scrap composition and production processes to meet the required technical specifications.
Does Using Scrap Automatically Make Steel Production Sustainable?
No. Scrap use must be considered alongside energy sources, production efficiency, water consumption, emissions and the environmental and social impacts of the supply chain.
Are the Circular Economy and Sustainability the Same?
No. The circular economy focuses on retaining the value of products and materials. Sustainability is a broader concept covering environmental, social and economic dimensions.
How Can Circularity in Steel Be Measured?
Relevant indicators include recycled input share, material yield, quantities of products reused and rates of by-product utilisation. These should be assessed alongside energy, water and emissions data.
