India is the first country in the world to lay down taxonomy (definition and standards) for “Green Steel”.This is a major achievement of India towards decarbonization (reduction of carbon emissions) in the steel sector.
| Green Steel Green steel is steel which is produced with significantly lower carbon emissions than conventional methods.The main criteria for defining green steel in India are based on CO2 equivalent emissions per tonne of finished steel (TFS).Emission limit: Steel plants with emission intensity less than 2.2 tonnes per tonne of CO2e will be eligible for green steel classification. Star Rating System Five Star: Emission intensity less than 1.6 t-CO2e/tfsFour Star: Emission intensity between 1.6 to 2.0 t-CO2e/tfsThree Star: Emission intensity between 2.0 to 2.2 t-CO2e/tfsSteel with emissions greater than 2.2 t-CO2e/tfs will not be eligible for Green Steel Rating.Review Cycle: The star rating threshold will be reviewed every three years. |
Event Highlights
- Green Steel Taxonomy unveiled: The taxonomy sets clear guidelines for defining green steel based on the emissions intensity of steel plants.
- Commitment to a low-carbon future: The release of the Green Steel Taxonomy is a significant step in India’s National Green Steel Mission, aligned with the country’s net-zero emissions target by 2070.
- Stakeholder consultation: Along with the taxonomy, consultations were held on the National Green Steel Mission (NMGS) and Green Steel Public Procurement Policy (GSPPP), with the government assuring that suggestions from stakeholders would be incorporated in the final versions of both documents.
Green Steel Taxonomy
- Environmental Sustainability: Protecting the environment by reducing carbon emissions in the steel sector.
- Global Leadership: Establishing India as a leading country by setting green steel standards.
- Market Creation: Increasing demand for low-carbon steel products and promoting sustainable technologies.
- Policy Coordination: Assisting in developing policies and incentives for green steel production.
Challenges
- Implementation: Meeting the emission target will require huge investments and new technologies.
- Data Collection and Validation: Ensuring accuracy of emission measurement and reporting.
- Competitiveness: Maintaining the competitiveness of Indian steel in the global market.
Indian Goals for Green Steel
- India has set an ambitious target to decarbonise its steel sector by reducing emissions to 2.2 tCO2 per tonne of steel by 2030.
- This target is an important part of India’s broader goal of achieving net-zero emissions by 2070.
- To meet this emissions intensity target and ensure global competitiveness, it will be imperative for the Indian steel sector to adopt a Green Steel Taxonomy.
Importance of Green Steel Taxonomy
- Global leadership: India has established itself as a leading country in defining green steel standards with this first green steel classification.
- Market creation: This framework promotes innovation and creates markets for low-carbon steel products in India.
- Emissions reduction: The 2.2 tCO2e/tfs limit and the star rating system encourage emissions reduction in steel production.
- Sustainability goal alignment: This classification is in line with India’s net-zero emissions target by 2070.
Initiatives to support green steel
- The Government of India, through the Ministry of Steel, has initiated several measures to promote green steel production:
- National Institute of Secondary Steel Technology (NISST): NISST will act as the nodal agency for Measurement, Reporting and Verification (MRV), and issue green certificates and star ratings for steel production.
- Incentive framework: Stakeholders will be encouraged to adopt green steel production practices by providing technical and policy support to reduce their emissions.
- Public procurement policies: The government is working on a Green Steel Public Procurement Policy (GSPPP) to ensure that green steel is prioritised in government procurement processes.
Global initiatives
- EU Green Deal Industrial Plan: It aims to accelerate the green transformation of the EU industrial base, including steel, through financial support and regulatory framework.
- Hydrogen Council’s Green Steel Initiative: Promotes the use of hydrogen-based technologies in steel production to reduce carbon emissions.
- World Steel Association’s Climate Action Pathway: Lays out a roadmap for the global steel industry to achieve carbon neutrality by 2050.
- LEADIT (Leadership Group for Industry Transformation): A global initiative jointly led by India and Sweden focused on accelerating the decarbonisation of heavy industries, including steel.