India’s Green Steel Taxonomy to Drive Decarbonization in the Steel Industry

Experts announced that India’s green steel taxonomy delineated by the Ministry of Steel on December 31, is viewed as attempting to kick off a decarbonization push in the steel industry of India. The intent of this initiative, itself, is to encourage sustainable practices through the adoption of cleaner technologies as well as an increased use of scrap as raw materials.

With the newly defined green steel categories, carbon emissions per ton of finished steel will determine the classifications of steel. Green steel will be defined as steel with carbon dioxide emissions of less than 2.2 tons per ton of finished steel, with the “five-star green-rated steel” being the lowest emission grade. It’s the cleanest variant of steel produced with less than 1.6 tons of emissions per ton of steel. In contrast, steel within the range of 2.0 to 2.2 tons of emissions per ton of steel will be classified as “three-star green-rated steel” which is the least clean of the rest.

To ensure their continued relevance, these thresholds will be reviewed once every three years, creating an avenue for affirming an increase in steel production and exports, according to the Indian Steel Association. Current Chairman Amarendu Prakash. The steel taxonomy will make visible the sustainability features of steel made in India, as well as provide an opportunity for enhanced steel exports.

Apart from switching to green power and using alternative fuels like hydrogen, steel mills are going to be adopting larger scrap usage to reduce their carbon footprint. According to Rajamani Krishnamurti, President of the Indian Stainless Steel Development Association, “Fixation of explicit emission intensity limits could be a major milestone on the path towards decarbonizing the Indian steel sector.”

While India’s steel industry currently produces steel with higher emissions compared to the global average, this new initiative is expected to help close the gap and position the country as a key player in sustainable steel production.