China's Baowu Group is taking measures to reduce carbon emissions, with its enterprises implementing relevant projects. The Ma'anshan Iron & Steel (Magang) steel plant has started implementing a carbon management system since the end of March 2024, covering all activities related to carbon trading and asset management. Baosteel Zhanjiang, a subsidiary of Baowu, began construction of a near-zero carbon steel mill in Guangdong Province in April 2024, investing 4.5 billion yuan ($622 million) in the plant.

The company will be equipped with a 220-ton electric arc furnace (EAF) and will use green electricity. Baosteel Zhanjiang launched a direct reduced iron (DRI) plant in Guangdong province in January 2024, which can produce up to 1 million tons of DRI per year using natural gas, coke oven gas, and hydrogen. China's HBIS successfully produced a commercial batch of direct reduced iron using Energiron technology in June 2023, which enriches coke oven gas with hydrogen by more than 60%. The company plans to expand its hydrogen-based DRI production capacity to 1.2 million tons per year.