India has taken a significant step towards reducing carbon emissions in the steel sector by unveiling the country’s first Green Steel Taxonomy. The initiative, announced by Union Minister of Steel and Heavy Industries Shri H. D. Kumaraswamy at Vigyan Bhavan on December 12, 2024, is in line with India’s target of net zero emissions intensity by 2070. The event was attended by a number of stakeholders including officials from the ministry, representatives from the steel industry, academics and a delegation from the European Union.
The Green Steel Taxonomy defines ‘green steel’ by taking into account the carbon intensity of steel production and offers a star rating system. This system aims to promote low-carbon steel production and create new markets. Accordingly, steels that produce carbon emissions below 2.2 tonnes of CO2 per finished steel will be classified as green. The rating system has been defined as follows:
Five Star Green Steel: Emission intensity below 1.6 tCO2/tfs.
Four Star Green Steel: Emission intensity between 1.6 and 2.0 tCO2/tfs.
Three Star Green Steel: Emission intensity between 2.0 and 2.2 tCO2/tfs.
Steel with emissions above the specified limits will not be included in the green classification. This system will be reviewed every three years.
The certification process will be conducted by the National Institute of Secondary Steel Technology (NISST) and certificates will be issued on an annual basis. Flexible arrangements will also be made available for steel manufacturers who want more frequent reporting.
Shri Kumaraswamy stated that the Green Steel Taxonomy is a milestone in the transition to a low-carbon economy and in implementing India’s National Mission for Green Steel. Minister of State for Steel Shri Bhupathi Raju Srinivasa Varma also emphasized that this initiative provides an innovative framework for sustainable steel production.
As part of the event, consultations were held with stakeholders on the draft National Mission on Green Steel and Public Procurement Policy. The Ministry announced that it will integrate the feedback received into the final policies.
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