The iron and steel industry is a significant contributor to global emissions, with a large portion coming from the ironmaking process that traditionally relies on coal and coke. To combat this, a shift towards green hydrogen as a reducing agent is proposed, offering a pathway to decarbonization and aligning with climate goals. The transition involves the production of green hot briquetted iron (HBI) at a higher cost initially but with potential for cost reduction in the future through advancements and support. Key cost drivers include green hydrogen production and clean electricity, emphasizing the need for affordable renewable energy. Financing challenges for green hydrogen-based projects can be tackled by establishing long-term contracts and implementing carbon pricing mechanisms like carbon contracts for difference (CfDs). The flexibility in location for green hydrogen-based facilities, coupled with supportive policy frameworks, opens opportunities for lower- and middle-income countries with abundant renewable energy resources. The transition also suggests the possibility of separating ironmaking and steel production facilities to optimize logistics and reduce costs. Overall, embracing green hydrogen technologies in the iron and steel industry offers a promising roadmap for sustainability and a low-carbon future.