India's Push for Green Steel: Policy Initiatives and Incentives to Drive Decarbonization
Key Ideas
  • India considers a procurement policy to boost demand for 'green steel' and promote environmentally sustainable manufacturing, aligning with global environmental goals.
  • Incentives may be provided to small steel producers to enhance environmentally sound practices, with the launch of a green steel mission akin to the green hydrogen mission.
  • The steel sector in India aims to align growth with global environmental objectives, emphasizing the necessity of sustainability as a crucial obligation for economic development.
  • Recommendations from the report include developing a Green Public Procurement policy for steel and fostering green steel production through the creation of a robust emissions accounting system.
In New Delhi, India's steel secretary, Sandeep Poundrik, has announced potential policy measures to promote 'green steel' and drive the industry towards environmentally sustainable practices. The move is in response to global pressure to reduce the carbon footprint in manufacturing, exemplified by the European Union's plan to impose a 'carbon tax' on steel and aluminum imports. The steel ministry is set to launch a green steel mission, paralleling the green hydrogen mission, to provide incentives and policy direction for the industry. The steel sector, a key component of India's industrial strength, is urged to align growth with global environmental objectives. The ministry plans to define 'green steel' and facilitate its adoption through initiatives outlined in the report 'Greening the Steel Sector in India: Roadmap and Action Plan.' The aim is to create demand for green steel by establishing a Green Public Procurement policy and enhancing green steel production and consumption through a robust emissions accounting system. Additionally, the report recommends support for green hydrogen projects in various applications within the steel industry, proposing pilot projects for hydrogen use in different processes. Collaboration with other ministries is suggested to extend benefits provided to green hydrogen projects in other sectors. The efforts encompass experimental blast furnaces and shaft furnaces in India for trials with hydrogen injection, highlighting the shift towards sustainable practices. The comprehensive report, developed through extensive consultations and task forces, covers areas such as energy efficiency, renewable energy, green hydrogen, and carbon capture technology. It aims to transform the steel industry through finance, international focus, skill development, and R&D, offering actionable strategies for a sustainable transition. The initiative reflects India's commitment to decarbonization and fostering environmental sustainability in the steel sector.
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