The International Finance Corporation (IFC) has signed an agreement to support Indonesian steel manufacturer PT Gunung Raja Paksi Tbk (GRP) in transitioning to low-carbon steel production. This agreement was IFC's first investment in the Asian steel industry in over a decade.

IFC planned to invest up to US$600 million to modernize the entire factory, aiming to make GRP a leading green steel producer in the region.

GRP previously exported about 80% of its flat steel products to Europe, striving to compete with Chinese manufacturers. However, as CBAM increases the cost of traditional high-carbon steel and the demand for green steel increases, GRP is expected to regain its competitiveness in the European market.