The EU commission has committed to fulfilling the targets of greenhouse gas (GHG) emission reduction in 2050 by 80 % compared to the level of 1990. The fulfilment of the EU´s climate policies brings new challenges for the iron and steel industry. The European steel industry is forced to develop strategies for the transition of their technology to a carbon lean production and to keep the competitiveness in the world market. The steel companies in EU27 are taking the challenge to secure steel production in Europe. They have launched innovation projects for CO₂ mitigation, focusing on the technological pathways Carbon Direct Avoidance (CDA) and Smart Carbon Usage (SCU), which are, beside Circular economy, defined as essential pillars for CO₂ reduction in the European steel industry. The transformation of the steel industry must go hand in hand with a decarbonisation of the energy supply and other industries within EU27.