{"id":65568,"date":"2026-01-31T18:41:38","date_gmt":"2026-01-31T13:11:38","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=65568"},"modified":"2026-01-31T18:44:43","modified_gmt":"2026-01-31T13:14:43","slug":"green-steel-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/31-01-2026\/green-steel-india","title":{"rendered":"Green Steel &amp; India\u2019s Climate Goals Trajectory"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy; Infrastructure; Environment<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India pledged and committed to submitting a revised and more ambitious <strong>Nationally Determined Contribution (NDC) at COP30 in Bel\u00e9m<\/strong> with a clear plan for <strong>economy-wide decarbonisation, <\/strong>especially in the<strong> steel sector.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/21-06-2025\/steel-industry-in-india\"><strong>Why Steel Matters?<\/strong><\/a><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Steel is a critical component of<strong> India&#8217;s eight core infrastructure industries<\/strong>, holding a significant <strong>weight of 17.92%<\/strong> in the<strong> Index of Eight Core Industries (ICI).<\/strong><\/li>\n\n\n\n<li>Steel production in India currently is <strong>about 125 million tonnes<\/strong> and accounts for <strong>nearly 12% of India\u2019s carbon emissions,<\/strong> with an emission intensity of 2.55 tonnes CO2 per tonne of crude steel, higher than the global average of 1.9 tonnes CO2, largely due to <strong>coal-based production.<\/strong><\/li>\n\n\n\n<li>India needs to increase its production by <strong>over 400 million tonnes by mid-century<\/strong> to unlock its full economic potential.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/13-12-2024\/india-green-steel-taxonomy\"><strong>What Is the Green Steel Taxonomy?<\/strong><\/a><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a <strong>classification framework <\/strong><em>(notified by the Ministry of Steel in December 2024)<\/em> that categorises steel based on its <strong>carbon emission intensity<\/strong> (measured as tonnes of CO\u2082 per tonne of crude steel).<\/li>\n\n\n\n<li>It is <strong>outcome-based<\/strong>, allowing multiple production routes as long as they meet defined emission thresholds, instead of focusing on a single technology.<\/li>\n\n\n\n<li>Its core objective is to <strong>differentiate steel products by their climate impact<\/strong> and enable credible claims of \u2018green steel\u2019.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Features of India\u2019s Green Steel Taxonomy<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Emissions-Based Classification: <\/strong>Steel is classified into <strong>graded categories<\/strong> based on lifecycle greenhouse gas emissions.\n<ul class=\"wp-block-list\">\n<li>Lower emission intensity corresponds to higher \u2018greenness\u2019, creating a <strong>clear transition pathway<\/strong> rather than a binary green\/non-green label.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Technology-Neutral Design: <\/strong>The taxonomy does not mandate a specific technology. It accommodates<strong> hydrogen-based DRI routes, scrap-based electric arc furnaces, natural gas as a transition fuel, and Carbon Capture, Utilisation and Storage (CCUS).<\/strong><\/li>\n\n\n\n<li><strong>Alignment with MRV Frameworks: <\/strong>The taxonomy is designed to work alongside <strong>robust Monitoring, Reporting and Verification (MRV)<\/strong> systems, ensuring emissions claims are measurable, comparable and auditable.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Is the Green Steel Taxonomy Important?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Investment Clarity: <\/strong>Low-carbon steel projects require <strong>30\u201350% higher capital investment<\/strong>.\n<ul class=\"wp-block-list\">\n<li>The taxonomy reduces uncertainty for lenders and investors by clearly identifying which projects qualify as green and therefore deserve preferential finance.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Market Creation: <\/strong>By enabling certification and labelling, the taxonomy lays the foundation for p<strong>ublic procurement of green steel, g<\/strong>reen product premiums, and corporate demand from climate-conscious buyers.\n<ul class=\"wp-block-list\">\n<li>Markets for green steel cannot function without a definition.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Global Trade Readiness: <\/strong>International mechanisms such as the <strong>EU\u2019s Carbon Border Adjustment Mechanism (CBAM)<\/strong> assess steel based on embedded emissions.\n<ul class=\"wp-block-list\">\n<li><strong>China <\/strong>is expanding <strong>scrap-based steel production<\/strong> and investing heavily in green hydrogen to reduce coal dependence.<\/li>\n\n\n\n<li>India\u2019s taxonomy helps domestic producers <strong>measure, disclose and reduce emissions<\/strong> in line with global norms, protecting export competitiveness.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Policy Coordination: <\/strong>The taxonomy acts as a bridge between industrial policy, climate policy, and climate finance and disclosure frameworks.\n<ul class=\"wp-block-list\">\n<li>It enables alignment across ministries and financial regulators, a key requirement for scaling the green industry.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Barriers to Green Steel<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>High cost and limited availability of green hydrogen;<\/li>\n\n\n\n<li>Insufficient renewable energy dedicated to industry;<\/li>\n\n\n\n<li>Fragmented and informal scrap markets;<\/li>\n\n\n\n<li>Uncertain access to affordable natural gas as a transition fuel;<\/li>\n\n\n\n<li>Limited carbon sequestration infrastructure;<\/li>\n\n\n\n<li>Lack of long-term, low-cost financing;<\/li>\n\n\n\n<li>Need for workforce upskilling and technology support;\n<ul class=\"wp-block-list\">\n<li>Many of these barriers are policy-driven.<\/li>\n\n\n\n<li>India\u2019s rapid transformation in renewable energy over the past decade shows what is possible when <strong>ambition, regulation, and investment align.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What India Needs Now?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Firm carbon emission targets<\/strong> across short, medium, and long-term horizons;<\/li>\n\n\n\n<li><strong>Early rollout of a carbon pricing mechanism<\/strong> to internalise emissions costs across the value chain;<\/li>\n\n\n\n<li><strong>Public procurement policies<\/strong> to create domestic demand for green steel;<\/li>\n\n\n\n<li><strong>Clear certification and labelling frameworks<\/strong> to build market trust;<\/li>\n\n\n\n<li><strong>Strategic green steel hubs<\/strong>, where shared infrastructure for renewable power, hydrogen, gas, and CO\u2082 transport reduces costs;<\/li>\n\n\n\n<li><strong>Targeted fiscal and financial support<\/strong>, especially for smaller producers;\n<ul class=\"wp-block-list\">\n<li>International experience shows that near-zero steel technologies become viable only with robust carbon pricing.<\/li>\n\n\n\n<li>India can learn from this while designing a framework suited to its own economic context.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>However, the <strong>Greening Steel Roadmap<\/strong>, <strong>National Green Hydrogen Mission<\/strong>, and emissions intensity targets under the <strong>Carbon Credit Trading Scheme (CCTS)<\/strong> signal intent and momentum.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.thehindu.com\/opinion\/lead\/green-steel-can-shape-indias-climate-goals-trajectory\/article70571515.ece\" target=\"_blank\" rel=\"noopener\">Source: TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> India pledged and committed to submitting a revised and more ambitious Nationally Determined Contribution (NDC) at COP30 in Bel\u00e9m with a clear plan for economy-wide decarbonisation, especially in the steel sector. <\/li>\n<p><\/p>\n<p><strong> Why Steel Matters? <\/strong><\/p>\n<li class=\"ms-5\"> Steel is a critical component of India&#8217;s eight core infrastructure industries, holding a significant weight of 17.92% in the Index of Eight Core Industries (ICI). <\/li>\n<li class=\"ms-5\"> Steel production in India currently is about 125 million tonnes and accounts for nearly 12% of India\u2019s carbon emissions, with an emission intensity of 2.55 tonnes CO2 per tonne of crude steel, higher than the global average of 1.9 tonnes CO2, largely due to coal-based production. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/31-01-2026\/green-steel-india \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-65568","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=65568"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65568\/revisions"}],"predecessor-version":[{"id":65571,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65568\/revisions\/65571"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=65568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=65568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=65568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}