ArcelorMittal faces global scrutiny for retreat from green steel, job cuts, and environmental violations

By Jag Jivan  

ArcelorMittal is facing mounting criticism after cancelling or delaying nearly all of its major green steel projects across Europe, citing an “unsupportive policy environment” from the European Union. The company has shelved projects in Germany, Belgium, and France, while leaving the future of its Spanish decarbonisation plan uncertain. The decision comes as global unions warn that more than 5,500 jobs are at risk across its operations, including 4,000 in South Africa, 1,400 in Europe, and 160 in Canada.

The company’s latest earnings update further underscores the gap between its stated climate ambitions and actual investments. According to SteelWatch, ArcelorMittal spent only about USD 100 million in the first half of 2025 on decarbonisation, despite an annual budget of USD 300–400 million. Its 2030 targets to cut carbon intensity by up to 35% from 2018 levels appear increasingly uncertain as it scales down operations and extends the life of coal-based furnaces.

InfluenceMap’s August 2025 assessment found that ArcelorMittal has been lobbying against core EU climate policies, including efforts to weaken the Carbon Border Adjustment Mechanism, the Industrial Decarbonisation Accelerator Act, and the Clean Industrial Deal State Aid Framework. The company also retains membership in the European Steel Association (EUROFER), which has opposed several EU climate measures. InfluenceMap rated ArcelorMittal’s climate policy engagement as “C–”, citing a disconnect between its public climate statements and its lobbying activities.

Across multiple countries, ArcelorMittal’s environmental and social record is under renewed scrutiny. In Belgium, the company is considering closing its flagship carbon capture and utilisation project in Ghent, potentially affecting 190 jobs. In France, it has suspended its EUR 850 million hydrogen-based green iron plan in Dunkirk and instead invested EUR 53 million to extend the life of a coal-fired furnace in Fos-sur-Mer. In Germany, despite an offer of EUR 1.3 billion in public subsidies, ArcelorMittal abandoned plans to convert its Bremen and Eisenhüttenstadt plants to green-hydrogen-based production.

In India, safety concerns and rising carbon risks are casting a shadow on the company’s operations. A crane collapse at ArcelorMittal Nippon Steel (AM/NS) India’s Hazira plant on October 1 killed one worker and injured three others — the third fatal accident at the facility in less than two years. Six additional deaths have been recorded at the plant since April 2024. Meanwhile, a Carbon Tracker report in September warned that 65% of AM/NS India’s capital expenditure is tied to projects that risk long-term carbon lock-in. The report concluded that despite India’s 2070 net-zero target, ArcelorMittal’s joint venture is on a trajectory of rising emissions intensity. Labour groups have called for stronger worker protections, greater transparency, and an accelerated shift away from fossil-fuel-heavy production methods.

In South Africa, over 4,000 jobs may be lost as ArcelorMittal South Africa (AMSA) struggles financially. Bloomberg reported that the Industrial Development Corporation may buy out AMSA, though the company faces a long record of pollution and air quality violations in the Vaal region. Most of Gauteng’s air quality monitoring stations—home to AMSA’s plants—are now offline, leaving communities and regulators without crucial environmental data.

In Canada, ArcelorMittal is closing its Hamilton wire-drawing mill, laying off 153 workers, while facing 200 environmental charges under the Fisheries Act for alleged metal discharges into waterways. In Brazil, its biocharcoal supplier Aperam has been accused by Mongabay of depleting groundwater and biodiversity through eucalyptus plantations in the Alto Jequitinhonha Valley, where groundwater levels have dropped by nearly 15 feet since the 1970s.

Further controversies span multiple continents. In Liberia, the company was fined USD 125,000 for river pollution and unannounced blasting operations. In Bosnia, it has sold its Zenica plant after two decades, leaving behind unremediated pollution. In Poland, it is considering extending coal-fired furnaces rather than transitioning to green production. In Spain, residents of Gijón have denounced years of toxic dust and respiratory illnesses linked to ArcelorMittal’s operations, accusing the company of halting its promised ecological transition.

Globally, ArcelorMittal has paid over USD 407 million in fines since 2010 for labour, environmental, and anti-competition violations, according to Violation Tracker Global. Critics argue that the company’s recent actions—scaling back on green steel projects while lobbying against climate policy and cutting jobs—contradict its public commitments to a just and sustainable transition. With rising pressure from unions, regulators, and communities worldwide, questions remain about whether ArcelorMittal can still meet its climate goals and uphold workers’ rights under the principles of a just transition.