Govt’s green steel taxonomy to push adoption of decarbonisation measures, say experts

 

push towards green steel (metal produced through sustainable process) will encourage the adoption of decarbonisation initiatives by the steel industry and help increase the usage of scrap as raw material, experts said. The government last week rolled out the definition of green steel with an aim to encourage the industry to bring down carbon emissions. Union Steel Minister H D Kumaraswamy released a 'taxonomy on green steel' with parameters for giving star ratings on products based on the amount of carbon dioxide (CO2) emitted during the production process. The industry experts hailed the move, saying the green steel taxonomy will help the sector become more competitive globally and increase exports.

 

“Not only will this propel the decarbonisation initiatives of the industry but would also clearly picture the competitiveness of Indian steel,” said Amarendu Prakash, Chair, FICCI Steel Committee & Chairman. The star-rated green steel will help all stakeholders in identifying the sustainability features and provide opportunities for increasing steel exports, said Prakash, who is also the Chairman of Steel Authority of India Ltd (SAIL). Ritabrata Ghosh, Vice President & Sector Head - Corporate Ratings, ICRA, said some of the measures steel mills are adopting to reduce their carbon footprint include transition to green power, reducing fuel cost by partly replacing coke with alternative fuels like hydrogen and coal bed methane, and increasing the use of scrap. Market research firm BigMint said the initiative will motivate steel mills to reduce their carbon emissions, which account for 12 per cent of India's total emissions. It aligns with the government's goal of achieving carbon neutrality by 2070 and underscores the crucial role of the steel sector in this transition. Industry body ISSDA said the establishment of clear emission intensity thresholds and a percentage-based greenness index marks a decisive step towards the decarbonisation of India's steel sector. “We urge our members to proactively embrace these guidelines and strive for higher green ratings, thereby reinforcing India's resolve to build a more sustainable, low-carbon future,” Rajamani Krishnamurti President, Indian Stainless Steel Development Association (ISSDA), said. Anil Chaudhary, Chair, Minerals and Metals Committee, PHDCCI, said: “As against average global GHG (green house gas) emissions of 1.91 t/tcs (tonnes carbon steel) for the steel industry, the same is 2.60 t/tcs for India due to dominance of coal based DRI (Direct Reduced Iron) process. Even the average of BF-BOF route for the top five producers of India is 2.50 t/tcs.”