The EU commission has committed to fulfil the targets of greenhouse gas (GHG) emission reduction in 2050 by 80% in comparison 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 the steel production in Europe and have launched innovation projects for CO2 mitigation with the focus on the technological pathways Carbon Direct Avoidance (CDA) and Smart Carbon Usage (SCU), which are, beside Circular economy, defined as important pillars for CO2 abatement in 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.