This review focuses on the energy structure of iron and steel production and a feasible development path for carbon reduction. The process path and feasible development direction of carbon emission reduction in the iron and steel industry have been analyzed from the perspective of the carbon−electricity−hydrogen ternary relationship. Frontier technologies such as “hydrogen replacing carbon” are being developed worldwide. Combining the high efficiency of microwave electric-thermal conversion with the high efficiency and pollution-free advantages of hydrogen-reducing agents may drive future developments. In this review, a process path for “microwave + hydrogen” synergistic metallurgy is proposed. The reduction of magnetite powder by H2 (CO) in a microwave field versus in a conventional field is compared. The driving effect of the microwave field is found to be significant, and the synergistic reduction effect of microwaves with H2 is far greater than that of CO.