This development is seen as a reflection of national climate policies aimed at reducing carbon emissions in heavy industries.
India’s Minister of State for Steel, Bhupathiraju Srinivasa Varma, stated in the lower house of Parliament (Lok Sabha) that the certifications will be granted in accordance with the Green Steel Taxonomy, which came into effect in December 2024. This taxonomy ranks facilities based on the amount of carbon dioxide emitted per ton of finished steel.
According to this classification:
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Facilities emitting 1.6 tons of CO₂ or less per ton of steel will receive 5 stars,
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Those emitting between 1.6 and 2 tons will receive 4 stars,
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Those emitting between 2 and 2.2 tons will receive 3 stars.
The certification process will be conducted by the National Institute of Secondary Steel Technology (NISST), under the Ministry of Steel. The institute will carry out measurement, reporting, and verification (MRV) processes to issue both the green steel certificate and the star rating.
India’s steel industry accounts for a significant share of the country's industrial CO₂ emissions. Therefore, the new certification system is considered vital for promoting cleaner production technologies and accelerating a sustainability-focused transformation in the sector.
The announcement in Parliament highlights the growing interest of Indian steelmakers in shifting toward climate-friendly production standards, and the process is seen as potentially marking the beginning of a new era in Indian steel production.
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