India's Green Transition in Steel Sector: Policy Initiatives and Emission Reduction Measures
Key Ideas
  • Indian government is implementing green transition measures in the steel sector to address decarbonisation challenges and comply with the European Union's Carbon Border Adjustment Mechanism.
  • Initiatives include the National Green Hydrogen Mission for green hydrogen production, Steel Scrap Recycling Policy 2019, and Motor Vehicles Rules 2021 to reduce carbon emissions.
  • The government's Perform, Achieve and Trade scheme incentivizes the steel industry to enhance energy efficiency, reducing the average emission intensity of steel production to 2.54 tonne of CO2 per tonne of crude steel in 2023-24.
  • The roadmap and action plan, formulated after stakeholder consultations, aim to enhance energy and process efficiency in the steel sector, contributing to a greener industry.
The Ministry of Steel in India has initiated various measures to address emerging challenges such as decarbonisation and the European Union's introduction of the Carbon Border Adjustment Mechanism. These measures are not dependent on a formal review of the National Steel Policy. After engaging with stakeholders, the government has developed a roadmap and action plan for the green transition of the steel sector. Key policy initiatives include the National Green Hydrogen Mission, aimed at promoting green hydrogen production and usage in the steel industry. Additionally, the notification of the Steel Scrap Recycling Policy 2019 and the Motor Vehicles Rules 2021 will enhance the availability of domestically generated scrap for steel manufacturing, reducing carbon emissions in the process. The implementation of the Perform, Achieve and Trade scheme under the National Mission for Enhanced Energy Efficiency incentivizes the steel industry to reduce energy consumption. As a result of these efforts, the average emission intensity of steel production in India decreased to 2.54 tonne of CO2 per tonne of crude steel in the fiscal year 2023-24. The Union Minister for Steel and Heavy Industries highlighted these initiatives in a written reply in the Rajya Sabha, emphasizing the government's commitment to a greener and more sustainable steel sector.
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