India has significant potential to reduce emissions from the steel sector as the country with the largest ship recycling capacity in the world. The country recycles about one-third of decommissioned ships, with facilities concentrated in the Alang region in Gujarat.
Since 80-85% of ship structures are made of steel, this recycling provides a valuable source of scrap that can replace traditional raw materials such as iron ore and coal. It is estimated that if India doubles its ship recycling capacity by 2028, it could prevent up to 20 million tons of carbon emissions by 2040. Recycled steel reduces the environmental impact of the production process while conserving natural resources.
Due to its dependence on coal, India’s steel sector accounts for 12% of the country’s greenhouse gas emissions, well above the global average of 7%. Increasing ship recycling capacity and adopting environmentally friendly technologies can contribute to significantly reducing emissions.
According to experts, infrastructure needs to be strengthened and regulatory frameworks need to be improved to unlock the full potential of the sector. The ship recycling sector not only supports the circular economy but also provides an effective solution for green steel production in line with India’s sustainable growth goals.
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