ArcelorMittal has revised its long-term decarbonization strategy

Global mining and steel company ArcelorMittal has revised its long-term decarbonization strategy, acknowledging that the energy transition has proven to be significantly more complex than previously anticipated. At the same time, the company reaffirmed its commitment to achieving carbon neutrality by 2050. This is stated in the 2025 sustainability report.

The company noted that economic, technological, and geopolitical factors have significantly altered the conditions on which the initial decarbonization plans were based. In particular, ArcelorMittal emphasized that even global institutions recognize the difficulty of limiting temperature rise to 1.5°C.

Against this backdrop, the group has updated its interim targets. Based on investment decisions already made, the company expects to reduce the carbon intensity of its production by 10% by 2030 compared to 2018 levels (Scope 1 and Scope 2). This is a more conservative approach than in previous plans and is based solely on projects that have already secured final financing.

One of the key elements of the updated strategy will be the transformation of the Dunkirk plant. Earlier this year, the company approved the construction of a 2-million-ton-per-year electric arc furnace with a total budget of €1.3 billion. Once commissioned, the project is expected to significantly alter the site’s carbon footprint.

ArcelorMittal also stated that it will continue to implement capital-intensive decarbonization projects in phases, maintaining financial discipline within an overall annual capital expenditure budget of $4.5–5 billion. This signals a shift toward a more pragmatic investment model.

Separately, the company is expanding its presence in adjacent segments of the energy transition. By 2028, ArcelorMittal expects to have 2.8 GW of its own or already operational renewable energy capacity. In 2025, energy transition-related activities accounted for 13% of the group’s revenue.

“Revising the decarbonization strategy is a necessary step to align the company’s previous plans with the current reality, in which the conditions for implementing large-scale decarbonization projects are lacking. In particular, there is insufficient demand for low-carbon products, high electricity prices negatively impact the competitiveness of electric arc furnace steel production, and make the production of green hydrogen in Europe unviable. Other European companies will also have to revise their 2030 decarbonization targets, as their previous ambitions are not realistic,” comments GMK Center analyst Andriy Glushchenko.

As reported by GMK Center, ArcelorMittal increased its net profit by 135.4% in 2025 compared to 2024, reaching $3.15 billion. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) for the 12-month period decreased by 7.3% year-on-year – to $6.54 billion. Operating income amounted to $3.63 billion, up 9.6% year-on-year.