India Unveils Green Steel Taxonomy: A Key Step Towards Sustainable Steel Industry

India announced Taxonomy of Green Steel which declares one of the most significant changes towards the decarbonising of its steel industry. It indeed reflects the willingness of the country to meet the net-zero emission intensity by 2070 at large. The declaration date announced on December 12, 2024 for the declaration at Vigyan Bhavan in New Delhi. In a ceremony led by Union Minister of Steel and Heavy Industries, Shri H D Kumaraswamy, alongside several national and international dignitaries, including the Minister of State for Steel, Shri Bhupathi Raju Srinivasa Varma, the event was conducted.

This pioneering taxonomy brands India as a global pioneer, offering the world the first-ever definition of “green steel.” It is the starting point toward a future wherein the steel production will come with greater environmental awareness. In this context, Shri Kumaraswamy was of the opinion that this taxonomy has been the basic building block of the National Mission on Green Steel, closely in tune with India’s low-carbon economic ambition. He appreciated the scheme as an important catalyst for change to turn the steel industry more green-friendly.
The taxonomy classifies “green steel” into star-rated categories based on emission intensity:

Five-star green-rated steel: Emission intensity below 1.6 t-CO2e per tonne of finished steel (tfs).
Four-star green-rated steel: Emission intensity between 1.6 and 2.0 t-CO2e/tfs.
Three-star green-rated steel: Emission intensity between 2.0 and 2.2 t-CO2e/tfs.
Steel with emission intensity above 2.2 t-CO2e/tfs is not eligible for green rating. These ratings will be reviewed every three years, factoring in Scope 1, Scope 2, and certain Scope 3 emissions during production.

The National Institute of Secondary Steel Technology (NISST) will serve as the nodal agency for issuing greenness certificates and star ratings, which will be provided annually, with the possibility of more frequent issuance if required.

The event also featured consultations on the draft National Mission on Green Steel (NMGS) and the Green Steel Public Procurement Policy (GSPPP). The final policies will include feedback from stakeholders to encourage teamwork in the industry.

India is the first country in its steel industry among the most sustainable and innovative. New taxonomy from the Ministry of Steel would bring it towards a sustainable future.