The steel sector is a major contributor to global carbon emissions, accounting for roughly 7-9% of direct CO2 emissions worldwide. This high carbon footprint stems primarily from energy-intensive processes like blast furnace-basic oxygen furnace (BF-BOF) production, which rely heavily on coal and coke. As governments intensify climate policies to meet net-zero targets, the steel industry faces increasing carbon costs through mechanisms such as carbon pricing, emissions trading systems, and carbon border adjustment measures. Regulatory risks include stricter emissions standards, mandatory reporting and disclosure requirements, and potential penalties for non-compliance. These factors elevate operational costs and create market uncertainties, pressuring steelmakers to invest in low-carbon technologies like electric arc furnaces (EAF), hydrogen-based direct reduced iron (DRI), and carbon capture utilization and storage (CCUS). Failure to adapt may result in competitive disadvantages, loss of market access, and reputational damage. Consequently, the steel sector must strategically manage carbon costs and regulatory risks by accelerating decarbonization, improving energy efficiency, and engaging with policymakers to shape feasible regulations. This transition is critical not only to mitigate climate impacts but also to ensure long-term economic viability in an evolving regulatory landscape.