India to Launch Green Steel Star Ratings for Sustainable Infrastructure

India’s Ministry of Steel (MoS) has introduced a star-rating system to define and promote the production of green steel, a key initiative for enhancing sustainability in the country’s steel sector. The star-rating aims to categorize steel based on its carbon emissions, with the goal of driving green public procurement projects (GPPP) and facilitating carbon credit trading.

Green steel is defined by its CO2 emissions, with steel plants producing less than 2.2 tonnes of CO2 per tonne of crude steel (tCO2/tcs) qualifying for the certification. A plant’s emission intensity determines its “greenness” rating, ranging from three stars for emissions between 2.2 to 2.0 tCO2/tcs, to five stars for emissions below 1.6 tCO2/tcs.

The MoS plans to issue green certificates annually for each plant, with the definition subject to revision every three years. This system, first introduced by the Bureau of Energy Efficiency (BEE) to improve energy efficiency, is crucial for encouraging the shift to sustainable production methods.

The MoS is also focusing on the green public procurement policy to boost demand for green steel. By 2026-27, the government plans to mandate public projects to source a certain percentage of steel from green producers, with varying shares for 3-star, 4-star, and 5-star steel. Despite the higher costs associated with producing green steel, the initiative aims to create long-term demand and drive the transition to a low-carbon steel industry.

To further accelerate the sector’s decarbonisation, the MoS is considering introducing “green steel inside” stickers for products and integrating green steel standards into green building codes. Additionally, the government is exploring the inclusion of green steel in sustainable energy technologies, including solar panels, wind turbines, and electric vehicles.