Technological Solutions to China's Carbon Neutrality in the Steel and Cement Sectors

China has set Nationally Determined Contributions (NDCs) and carbon neutrality targets without providing expected industry‐specific technological details. By focusing on the steel and cement industries in China, this study analyzes the energy consumption of different technology routes, decarbonization pathways of innovative technologies, and the synergistic impact of air pollutants. The study finds that the incumbent technology routes for steel and cement production have limited carbon reductions, and the deployment of innovative technologies (carbon capture, utilization, and storage [CCUS], electrolytic‐ and hydrogen‐based, and scrap‐based technologies) need to be accelerated to achieve carbon neutrality targets. We find that the net‐zero emissions pathway relying upon innovative technologies needs less investment than the NDCs scenario. Furthermore, electric arc furnace deployment will be mainly concentrated in Jiangsu, Guangdong, and Sichuan, while CCUS should be mainly in Hebei, Shandong, Liaoning, and Jiangsu provinces. The increased electrification of innovative technologies in steel and cement requires a shift in energy inputs from fossil energy to electricity. A combination of strict climate change mitigation and air pollution control will have higher synergistic effects. Plain Language Summary Carbon neutrality means achieving a balance between emitting and absorbing carbon from the atmosphere in carbon sinks, and therefore imposes stringent requirements on human economic production activities. China has announced ambitious plans to achieve carbon neutrality by 2060, which will require deep decarbonization across carbon‐intensive sectors. The steel and cement sectors account for 70% of China's overall industrial emissions and are prioritized for emissions reduction. We believe that traditional technologies and process improvements are insufficient to reduce emissions from steel and cement production and that innovative technologies must be considered. The new technologies may be low‐carbon processes or fuel supplies. The MESSAGEix‐China model was developed in this study to explore the decarbonization pathways for steel and cement in China based on the least‐cost approach, providing technological solutions under different scenarios. This study identifies technological solutions that can achieve net‐zero emissions targets with lower economic costs. The synergistic effects of air pollutants are also discussed for effective climate policy. Key Points