The U.S. green steel market share is not only driven by technological innovation but also shaped by a robust policy and regulatory framework. Government initiatives at both federal and state levels are accelerating the transition to low-carbon steel production, ensuring that sustainability aligns with economic growth and industrial competitiveness.

At the federal level, climate policies are creating strong incentives for green steel development. The Biden administration’s commitment to reducing greenhouse gas emissions by 50–52% by 2030 has set ambitious targets for heavy industries. Programs such as the Inflation Reduction Act (IRA) provide tax credits, subsidies, and grants to encourage investment in renewable energy, hydrogen infrastructure, and carbon reduction technologies—all critical components of green steel production.

The Department of Energy (DOE) has launched initiatives to support research into hydrogen-based steelmaking and renewable energy integration. These efforts are complemented by public-private partnerships that bring together steelmakers, energy providers, and academic institutions. Meanwhile, the Department of Transportation and General Services Administration (GSA) are incorporating green procurement policies, prioritizing low-carbon steel in federally funded infrastructure projects.

At the state level, policies promoting renewable energy play a direct role in supporting green steel. States like California, Texas, and New York are leading in renewable energy capacity, providing steel producers with access to clean electricity for electric arc furnaces. Regional initiatives focused on clean hydrogen hubs, supported by federal funding, are further enabling hydrogen-based steelmaking.

Regulatory mechanisms such as carbon pricing and potential border adjustment measures also influence the U.S. green steel market. While the U.S. does not yet have a national carbon pricing scheme, discussions are underway to align with global markets, particularly as the EU introduces its Carbon Border Adjustment Mechanism. Such measures would benefit U.S. producers of low-carbon steel by making them more competitive internationally.

In addition to government action, industry standards and certifications are supporting market growth. Organizations such as ResponsibleSteel are developing global benchmarks for sustainable steel production, encouraging U.S. companies to adopt best practices. Certifications not only validate the environmental credentials of green steel but also increase its appeal to environmentally conscious buyers.

These policies and regulations are creating a favorable business environment for steelmakers to transition to low-carbon production. Financial incentives reduce the risks of investing in new technologies, while procurement policies ensure a stable demand for green steel. Together, they create a virtuous cycle that accelerates innovation, adoption, and market expansion.

In conclusion, the U.S. green steel sector is thriving under a policy framework that balances sustainability with economic opportunity. With strong regulatory support, steelmakers can confidently invest in new technologies, meet climate goals, and enhance competitiveness in global markets. As policies continue to evolve, they will remain a central force driving the growth of green steel in the United States.