India's Steel Industry Adapting to EU's Environmental Standards with Focus on Green Hydrogen
Key Ideas
  • India's steel ministry urges major exporters to reduce carbon footprint to align with EU's carbon border adjustment mechanism.
  • Steel producers like Tata Steel, Jindal Steel, and JSW Steel asked to develop carbon-capture tech and use green hydrogen.
  • Indian steel industry faces challenges due to high carbon emission intensity, but aims for compliance with global standards.
  • Collaborations with institutions and adoption of Tata Steel's green initiatives proposed to meet emission guidelines and net zero goals.
India's steel ministry is emphasizing the need for major steel exporters to reduce their carbon footprint in alignment with the European Union's proposed carbon border adjustment mechanism (CBAM). As the EU plans to tax imports based on embedded carbon, including hydrogen, India is exploring measures to counter this while encouraging steelmakers to adopt green technologies. The steel industry in India is experiencing significant expansion, with a focus on adding new capacity, but faces challenges due to high carbon emission intensity. The ministry is urging steel producers to initiate pilot projects aimed at emission reduction and comply with emerging standards. From 2026, non-compliant steel exports to the EU could face additional tariffs under CBAM. To tackle this, the ministry is advocating for the use of green hydrogen as a coal replacement in blast furnaces, inspired by Tata Steel's successful trials. Collaborations with institutions and the adoption of carbon capture technologies are also being promoted to meet global emission guidelines. These initiatives not only aim to ensure compliance with stricter environmental regulations but also contribute to India's goal of achieving net zero emissions by 2070.
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