In a landmark move, India has taken a decisive step towards decarbonising its steel sector with the release of the Green Steel Taxonomy, unveiled by Union Minister of Steel and Heavy Industries, Shri H.D. Kumaraswamy, at Vigyan Bhavan. This initiative aligns with the nation’s commitment to achieving net-zero carbon emissions by 2070 and marks India as the first country globally to define and implement a formal taxonomy for green steel.
The event witnessed the participation of Shri Bhupathi Raju Srinivasa Varma, Minister of State for Steel and Heavy Industries, senior officials from the Ministry of Steel, representatives from the steel industry, think tanks, academia, and a European Union delegation. The taxonomy aims to redefine the production of steel in India by focusing on reducing carbon emissions and fostering innovation in sustainable practices.
A Framework for Sustainable Steel Production
The Green Steel Taxonomy provides a structured framework for defining, producing, and rating steel based on its environmental impact. It introduces a star-rating system to categorize green steel based on emission intensity:
- Five-star green-rated steel: Emission intensity below 1.6 tCO₂ per tonne of finished steel (tfs).
- Four-star green-rated steel: Emission intensity between 1.6 and 2.0 tCO₂/tfs.
- Three-star green-rated steel: Emission intensity between 2.0 and 2.2 tCO₂/tfs.
Steel with emission intensities exceeding 2.2 tCO₂/tfs will not qualify for a green rating. This classification aims to incentivize the adoption of greener technologies while ensuring global competitiveness.
Comprehensive Emission Scope and Monitoring
The scope of emissions considered includes Scope 1, Scope 2, and select Scope 3 emissions, such as those from beneficiation, agglomeration processes, and embodied emissions in raw materials. However, upstream mining, downstream emissions, and transportation are excluded. The National Institute of Secondary Steel Technology (NISST) will oversee the measurement, reporting, verification, and issuance of annual greenness certificates to steel plants, ensuring transparency and accountability.
Vision for the Future
Shri H.D. Kumaraswamy described the release as a historic milestone, highlighting its importance for advancing the National Mission on Green Steel (NMGS) and transitioning to a low-carbon economy. He emphasized that this taxonomy is pivotal for driving India’s sustainable development goals while fostering innovation in the steel sector.
Shri Bhupathi Raju Srinivasa Varma commended the taxonomy as a transformative initiative to redefine steel production standards in India. Secretary Steel, Shri Sandeep Poundrik, outlined the challenges ahead but expressed confidence in the collective efforts of stakeholders to meet the target of reducing emission intensity to 2.2 tCO₂/tfs by 2030.
Stakeholder Engagement and Policy Integration
The event also hosted consultations on the draft National Mission on Green Steel (NMGS) and Green Steel Public Procurement Policy (GSPPP), ensuring a collaborative approach to policy finalization. Stakeholders were encouraged to provide inputs, which will be incorporated into the final versions of these policies.
Commitment to Sustainability
The Ministry of Steel reiterated its dedication to fostering innovation and sustainability. This groundbreaking initiative positions India’s steel industry as a leader in shaping a sustainable and resilient future.
The event concluded with a vote of thanks by Smt. Neha Verma, Director, Ministry of Steel, underscoring the Ministry’s commitment to achieving environmental and economic goals through collective efforts.