Abstract: To address global warming, respond to international trade pressures (such as carbon tariffs) affecting China’s iron and steel industry, and help the steel industry achieve the goal of “carbon peak + carbon neutrality,” this paper examines the current carbon emissions landscape within China’s iron and steel industry and identifies the challenges encountered by steel enterprises in managing carbon emission. An innovative framework for leveraging digital technology to enhance the capabilities of the iron and steel industry is proposed. Drawing insights from notable instances of digital carbon management in the steel industry, key priorities at different stages of building a digital carbon management system are explored, and corresponding strategies are put forward. The framework of digital carbon emission management comprises four layers: infrastructure and data acquisition, data processing, business application, and user interface layers. The envisioned applications of digital carbon management in the steel industry encompass carbon accounting, carbon reporting, carbon mapping, carbon structure analysis, carbon comparisons, carbon trading, carbon consulting, energy–carbon synergy, low-carbon index, management of product carbon footprints along the supply chain, real-time tracking of product carbon footprints, digital carbon labeling, identification of energy-saving potential, and ecological design. By delving into representative case studies of digital carbon management within the steel industry, the potential for the application of digital carbon management technology in the steel industry is analyzed. A two-stage approach for implementing a digital carbon management system in China’s steel industry was proposed, contingent on whether the industry becomes part of the national carbon trading market. Government should play a leading role in guiding the development of the digital carbon management system. Simultaneously, we emphasize the need to enhance relevant standards and regulations in digital carbon management, invest in the training of professionals in this field, and establish strong connections with existing enterprise information systems. We advocate for a future trend of “six integration + multiplatform” digital carbon management within the steel industry, featuring a “one body + multiplatform” evaluation and certification system for low-carbon products. This vision for digital carbon management encompasses characteristics such as standardization, internationalization, integration, security, asset management, and localization. Integrating digital carbon management technology into the steel industry holds the potential to streamline carbon management processes, alleviate pain points experienced by enterprises, lower barriers to carbon management, increase operational efficiency, and safeguard carbon data during transmission.