Green Steel: The Next Big Shift in Australian Construction for 2025

As of May 2025, “green steel” is emerging as a major trend in Australia’s construction industry. With mounting pressure to decarbonise and meet ambitious climate targets, builders and developers are increasingly seeking out low-carbon materials—especially steel, which is a cornerstone of modern construction.

What’s Driving the Green Steel Surge?

• Government Policy: The Australian government’s 2025 update to the National Construction Code now encourages the use of low-emission materials. Several states are offering grants and fast-tracked approvals for projects using green steel.

• Industry Demand: Major contractors and developers are specifying green steel for new commercial and infrastructure projects. This is driven by both regulatory requirements and the growing demand from clients for sustainable buildings.

• Local Production: Australian steelmakers like BlueScope and Liberty are ramping up production of green steel, using renewable energy and recycled materials. Their products are now available at scale, making it easier for builders to source locally.

Benefits of Green Steel

• Lower Carbon Footprint: Green steel can reduce embodied carbon in buildings by up to 80% compared to conventional steel.

• Reputation and Compliance: Using green steel helps companies meet sustainability benchmarks and win contracts with eco-conscious clients.

• Innovation Opportunities: The shift is driving innovation in fabrication, with new welding and coating techniques designed for these advanced materials.

Real-World Examples

• The new Sydney Metro stations are using green steel for structural elements.

• Several high-rise developments in Melbourne are piloting green steel frameworks, aiming for Green Star certification.

Conclusion

The green steel revolution is well underway in Australia. As more projects embrace this sustainable material, the industry is set for a cleaner, greener future—one where innovation and responsibility go hand in hand.