India Pioneers Green Steel Taxonomy to Lead Global Low-Carbon Steel Revolution

India has taken a monumental step in its pursuit of sustainable industrial growth with the release of the Taxonomy of Green Steel, marking its commitment to decarbonizing the steel sector and aligning with the nation's net-zero emission targets by 2070. The milestone announcement was made on 12th December 2024 by Union Minister of Steel and Heavy Industries, Shri H.D. Kumaraswamy, at an event held at Vigyan Bhavan.

The launch was attended by Minister of State for Steel and Heavy Industries, Shri Bhupathi Raju Srinivasa Varma, key officials from the Ministry of Steel, Central Public Sector Enterprises (CPSEs), steel industry representatives, think tanks, academics, and international delegates, including a European Union delegation. With no globally accepted definition of green steel, India becomes the first country to create a formal taxonomy, setting a global benchmark.

A Transformative Initiative for Sustainability

Shri Kumaraswamy emphasized the historical significance of this initiative in driving India's transition to a low-carbon economy. "The Taxonomy of Green Steel not only reflects our commitment to sustainability but also represents a foundational step in advancing the National Mission on Green Steel," he remarked.

Minister of State, Shri Varma, highlighted the transformative potential of the taxonomy. "This framework will define green steel, encourage innovation, and create a robust market for low-carbon steel products in India, fostering sustainable growth," he said.

Steel Sector’s Decarbonization Challenges and Goals

Steel Secretary Shri Sandeep Poundrik underscored the sector's responsibility to adopt the taxonomy to achieve environmental sustainability targets. "The steel industry faces the dual challenge of reducing emission intensity to 2.2 tCO2 per tonne by 2030 while maintaining global competitiveness. With industry collaboration, we are confident of meeting these goals," he stated.

Key Features of Green Steel Taxonomy

The taxonomy introduces a tiered system for rating green steel based on emission intensity:

• Five-star green-rated steel: Emission intensity < 1.6 t-CO2e/tfs.
• Four-star green-rated steel: Emission intensity between 1.6 and 2.0 t-CO2e/tfs.
• Three-star green-rated steel: Emission intensity between 2.0 and 2.2 t-CO2e/tfs.
• Steel with emission intensity > 2.2 t-CO2e/tfs will not qualify for green rating.

The emission thresholds will be reviewed every three years to maintain relevance with evolving standards. The scope of emissions covers Scope 1, Scope 2, and limited Scope 3 emissions up to finished steel production, excluding downstream transportation and mining emissions.

The National Institute of Secondary Steel Technology (NISST) will oversee measurement, reporting, verification (MRV), and the issuance of greenness certificates and star ratings, which will be valid for a year. Steel plants may opt for more frequent certifications as needed.

Integrating Stakeholder Feedback

The event also included consultations on the draft National Mission on Green Steel (NMGS) and the draft Green Steel Public Procurement Policy (GSPPP). The Ministry assured stakeholders that their inputs would be incorporated into the final versions of these critical frameworks.

Driving Innovation and Global Leadership

India's steel industry is poised to lead the global low-carbon revolution, with its commitment to sustainable practices and collaboration among industry players. The Ministry of Steel aims to position the country as a global hub for innovative and eco-friendly steel production.

The event concluded with a vote of thanks by Smt. Neha Verma, Director, Ministry of Steel. As India charts its path toward sustainability, the launch of the Green Steel Taxonomy signifies a transformative step, setting the stage for a greener, more resilient future.