India marked a significant milestone in its journey towards a low-carbon economy with the unveiling of the Green Steel Taxonomy at an event, held at Vigyan Bhavan, New Delhi.

Key Highlights of the Event

• Unveiling of the Green Steel Taxonomy: The Taxonomy sets clear guidelines for defining green steel based on the emission intensity of steel plants.
• Commitment to a Low-Carbon Future: The release of the Green Steel Taxonomy is a pivotal step in India’s National Mission on Green Steel, aligning with the nation’s net-zero emissions goal by 2070.
• Stakeholder Consultation: Alongside the Taxonomy, consultations on the National Mission on Green Steel (NMGS) and the Green Steel Public Procurement Policy (GSPPP) were conducted, with the government assuring that suggestions from stakeholders would be incorporated into the final versions of both documents.

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About Green Steel

• Green Steel is steel produced with significantly lower carbon emissions compared to traditional methods.
• The key criteria for defining Green Steel in India are based on CO2 equivalent emissions per tonne of finished steel (tfs).
• Emissions Threshold: Steel plants with an emission intensity lower than 2.2 tonnes of CO2e per tfs will qualify for the Green Steel classification.
• Star Rating System:
• • Five-star: Emission intensity lower than 1.6 t-CO2e/tfs
  • Four-star: Emission intensity between 1.6 to 2.0 t-CO2e/tfs
  • Three-star: Emission intensity between 2.0 to 2.2 t-CO2e/tfs
  • Steel with emissions higher than 2.2 t-CO2e/tfs will not be eligible for a Green Steel rating.
• Review Cycle: The star rating thresholds will be reviewed every three years.

Indian Target for Green Steel

• India has set an ambitious target to decarbonize its steel sector by reducing emissions to 2.2 tCO2 per tonne of steel by 2030. 
• This target is a critical part of India’s overarching goal to achieve net-zero emissions by 2070.
  • The adoption of Green Steel Taxonomy will be mandatory for the Indian steel sector to meet this emissions intensity target and ensure global competitiveness.

Significance of The Green Steel Taxonomy

• Global Leadership: India establishes itself as a frontrunner in defining green steel standards with this first-ever Green Steel Taxonomy.
• Market Creation: This framework fosters innovation and creates a market for low-carbon steel products in India.
• Emission Reduction: The 2.2 tCO2e/tfs threshold and star rating system incentivize emission reduction in steel production.
• Sustainability Goal Alignment: This taxonomy aligns with India’s net-zero emission target by 2070.

Challenges In its Implementation

• Ambitious Target: Achieving the 2.2 tCO2e/tfs target within 6 years (by 2030) can be challenging for the Indian steel sector.
• Technology Adoption: Transitioning to cleaner technologies like hydrogen-based steelmaking requires significant investment.
• Cost Competitiveness: Low-carbon production methods may initially be costlier, potentially impacting global competitiveness.
• Monitoring and Verification: Developing a robust MRV system (Measurement, Reporting, and Verification) to accurately assess greenness is crucial.

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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): The NISST will serve as the nodal agency for measurement, reporting, and verification (MRV), issuing greenness certificates and star ratings for steel production.
• Incentive Framework: Stakeholders will be encouraged to adopt green steel production methods 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 prioritized in government procurement processes.

Global Initiatives

• European Union Green Deal Industrial Plan: Aims to accelerate the green transition of the EU’s industrial base, including steel, through financial support and regulatory frameworks.
• 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: Sets out a roadmap for the global steel industry to achieve carbon neutrality by 2050.
• LeadIT (Leadership Group for Industry Transition): A global initiative co-led by India and Sweden, focusing on accelerating the decarbonization of heavy industries, including steel.

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