Experts urge factories to produce 100% refined steel to cut carbon emissions

Highlights:

• Steel sector emits 10% of Bangladesh's total carbon output
• Experts urge real reforms beyond "green branding" for sustainability
• Upgrading to high-strength steel boosts resilience and cuts emissions
• Outdated building codes hinder adoption of greener, advanced steel
• Industry seeks policy support for electric furnaces and renewables
• True sustainability demands ecological balance, not just economic growth

To make the country's steel sector environmentally friendly and sustainable, the use of refined steel, renewable energy, electric arc furnace technology, and proper implementation of building codes are essential, experts have said.

Around 10% of Bangladesh's total carbon emissions come from the steel industry. Although some companies in the sector have taken steps to reduce emissions, such efforts remain limited, experts said at a roundtable titled "Bangladesh steel industry: Driving sustainability, seismic resilience, and advanced refined steel for maximum consumer satisfaction".

"If Bangladesh's steel industry truly wants to be sustainable, the first step must be policy and technological reform – not simply painting things green. Green branding does not bring real sustainability; we must adopt genuine sustainable practices," Environment Adviser Syeda Rizwana Hasan said at the roundtable jointly organised by The Business Standard and Abul Khair Steel in Dhaka on Saturday.

Moderated by Sharier Khan, senior executive editor of TBS, the discussion emphasised that tackling environmental challenges requires more than just "green branding". Experts called for concrete policy reforms, technological innovation, and a strong accountability framework.

Two keynote papers presented under the event's theme shed light on technological and policy pathways towards a greener, safer, and stronger steel industry.

Professor Dr Md Aminul Islam from the Department of Materials and Metallurgical Engineering at Buet presented a paper titled "Shift from Low-Strength to High-Strength Steel Can Help in Building a Strong and Green Bangladesh."

He highlighted that upgrading steel from 400-grade to 500-grade and concrete from 30MPa to 60MPa could reduce structural weight by 28%, ensuring both resilience and sustainability. Aminul Islam outlined seven parameters for sustainable design – including quality materials, proportional harmony, and symmetry – stressing that "lightweight, high-strength structures are the future of global construction." He added that almost 18% of global CO₂ emissions come from steel and cement combined, underscoring the need for efficient, low-carbon production.

Shamsuddin Illius, Chattogram Bureau Chief of The Business Standard, presented another paper titled "Bangladesh Steel Industry: Navigating the Future with Eco-Friendly Sustainable Operation, Seismic Resilience and 100% Refined Steel."

He emphasised the industry's shift from manual rerolling to refined, automated, and eco-efficient systems, calling sustainable steel both "an environmental necessity and an economic imperative." 

Illius urged the government to develop a national roadmap that includes code updates, mandatory use of high-strength steel in public projects, and capacity-building to transform Bangladesh into a regional hub for resilient, low-carbon steel manufacturing.

Md Nurul Islam, Chief Engineer of the Rajdhani Unnayan Kartripakkha (Rajuk), said that companies would adopt refined and high-quality steel products if their usage could be increased. About 70% of this industry's output is used in government projects. 

"Although companies are now producing rods up to 700-grade, under the National Building Code (BNBC) we still cannot use anything above 500-grade. We are training our manpower and making our structures suitable for green construction. But without amending the BNBC, a green industry will not be possible," he said.

Dr Sumon Chowdhury, Chairman of Rani Re-Rolling Mills Ltd and Secretary General of the Bangladesh Steel Manufacturers Association, said the biggest challenge for Bangladesh's steel industry right now is capacity. "Everyone has invested without proper market studies, resulting in a large portion of capacity lying idle. Regulatory bodies must work to make the existing capacity greener and more sustainable. The Chattogram port must be made more dynamic. The BNBC and PWD need to change their policies and promote the use of quality products."

Sheikh Shabab Ahmed, Group Head of Corporate Affairs and Legal at Abul Khair Group, said, "We are investing heavily in green initiatives, but the government is not supporting us by updating its policies. The BNBC needs to be amended to safeguard our investments."

He added, "Abul Khair was the first in the country to produce refined steel. We practise 100% rainwater harvesting and use no groundwater in our factories. As part of our greening efforts, we have installed 50 MW solar panels at our factory. In 2015, we set up the world's most advanced Electric Arc Furnace (EAF) technology for the first time in Bangladesh. This process melts scrap to produce billets — iron bars used to make usable steel products — without releasing toxic fumes into the environment."

Md Moshiur Rahman, First Secretary (VAT Policy) of the National Board of Revenue (NBR), said, "The steel industry is not only vital for the economy but also represents the evolution of our civilisation. From the Stone Age to the Iron Age, at every step, humans sought means of self-defence rather than destruction. Even today, developing steel means strengthening the framework of our sustainable self-defence and progress."

He added, "Refining and modernising the steel industry now means building an environmentally friendly, stronger, and future-oriented Bangladesh. Refinement is needed not only for metals but also for policies. Just as refining steel increases strength and durability, refining policies through clarity, transparency, and predictability strengthens governance. Our revenue policy is now moving toward a mid- and long-term vision, enabling industrial entrepreneurs to plan long-term investments. We want every policy to maintain predictability and clarity."

M Zakir Hossain Khan, Chief Executive of Change Initiative, said, "We must now decide whether to prioritise profit over natural resources. By cutting hills, importing polluted scrap, or overbuilding, we are endangering our own existence. A national roadmap is urgently needed to set targets for making the steel industry cleaner, smarter, safer, and more resilient by 2030 or 2035."

He added that the use of renewable energy in steel production would not only reduce costs but also position Bangladesh as a regional leader in green steel manufacturing. "In the future, compliance with ESG (Environmental, Social, and Governance) standards will be unavoidable for survival in the international market," he said.

Md Shamsuddoha, Additional Chief Engineer (P&SP) of the Public Works Department, said that while steel is an essential component of development, its environmental impacts must also be considered. "In our country, around 10% of carbon emissions come from the steel industry and 8% from cement. Both sectors must adopt modern technologies and reuse systems," he said.

He noted that the public sector has already achieved 100% use of non-fire bricks, and similar initiatives should be made mandatory in the private sector. "Sustainable construction will not be possible unless the Bangladesh National Building Code (BNBC) and the Bangladesh Building Regulatory Authority (BBRA) are fully enforced. It is time to update the code and include new standards ranging from 500-grade to 700-grade steel," he added.

Md Shamim, Executive Engineer and Project Director at the Chattogram Development Authority, said high-strength steel plays a vital role in maintaining structural stability during earthquakes. However, imbalance arises if the strength of steel and concrete does not match in design. "We now use concrete up to 6000 PSI, but if the quality of concrete is not improved in line with advances in steel, structural risks will remain. Therefore, both steel and concrete standards must be improved simultaneously."

Speaking about the ship-breaking industry in Chattogram, he said, "We are taking initiatives to turn the sector into green yards. Greening does not mean only planting trees — ensuring worker safety and fire security is its main goal. Six to seven companies are already working to meet these standards."

Sharmin Sultan Joya, Chief People Officer of GPH Ispat, said that in 2020, the environment, forest and climate change ministry identified the industrial sector — particularly the steel sector — as one of the key areas for carbon emission reduction. "To achieve this goal, modernisation through electric furnaces, renewable energy, and scrap circularity is essential," she said.

She added that GPH Ispat has already made revolutionary progress towards this goal. "In 2020, we began commercial production using the world's most advanced Quantum Electric Arc Furnace (Q-EAF) technology. This allows a saving of 235 kg of carbon per tonne of steel produced."

At the same event, Mahfuz Russel, Founder and Executive Director of the Pittachhara Forest & Biodiversity Conservation Initiative, criticised the lack of data on scrap and slag used in the industry. "If such data were available, it would be easier to identify the polluting factories," he said.

Also at the discussion, Sohanur Rahman, Executive Coordinator of YouthNet Global, urged stakeholders to consider not only making steel factories environmentally friendly but also ensuring workers' health and quality of life.

Adviser Syeda Rizwana Hasan said, "The steel industry remains one of the most carbon-intensive and environmentally polluting industries in the world. The entire process of steel production is so dependent on electricity and water that making it ecologically sustainable is nearly impossible. You cannot achieve zero carbon in this industry. 

"You can only take green initiatives such as refined steel manufacturing, solar energy use, rainwater harvesting, electric arc furnace adoption, and maintaining green spaces — these will reduce emissions, but the industry can never be zero-carbon."

"We now too easily paint something green or obtain certificates and call it 'sustainable'. But merely earning certificates on paper does not make an industry sustainable unless its core operations change," she said.

According to Rizwana Hasan, Bangladesh still equates development with environmental destruction — an idea that must change. "Using nature and destroying nature are not the same. Development that destroys the natural resource base can never be called sustainable," she said.

She urged policymakers, saying, "Sustainability is not about lighting up conferences and giving speeches — it must be reflected in laws and policies. If laws and policies lack integrity, everything will remain only in green colour, without real change."

She also criticised shortcomings in urban planning. "We plant trees beside roads but never plan for future expansion. Later we cut them down to widen roads. With proper planning from the start, both nature and development could have been preserved. We build factories of steel, cement, and bricks, but destroy the natural resource base that supports them. That is not development, it is destruction," she said.

"Sustainability does not mean only economic viability; it also requires maintaining environmental balance. Business alone cannot make a society sustainable. Protecting oxygen, water, and the environment for future generations — that is true sustainability," Rizwana Hasan concluded.