The steel industry is a major contributor to global CO₂ emissions, prompting the need for decarbonization. Green steel, produced using green hydrogen, is gaining importance as a cleaner alternative to traditional steelmaking methods. Nepal, with a significant steel industry, is focusing on green steel to reduce carbon emissions and align with international climate goals. The country's iron ore reserves offer potential for increased local production, reducing dependency on imports. However, Nepal faces technological barriers in transitioning to green steel, requiring substantial investments and policy support to establish modern hydrogen-based reduction systems. The government's role in providing policy backing, subsidies, and regulatory standards will be crucial in facilitating this transition and encouraging sustainable practices in the steel sector.