Climate Imperative and Industrial Responsibility
- India’s net-zero 2070 commitment hinges significantly on decarbonising emission-intensive steel manufacturing.
- Steel sector remains among the largest industrial sources of carbon emissions.
- Ministry of Steel constituted 14 task forces mapping technological and policy transition pathways.
- Roadmap identifies diversified levers for accelerating low-carbon steel production.
Green Premium and Fiscal Support Needs
- Green steel production involves high upfront investment and technology transition costs.
- Resultant “green premium” constrains early private sector adoption.
- Targeted fiscal incentives, GST rationalisation, and time-bound subsidies can ease transition.
- Bridging cost gaps remains essential for commercial viability and industry participation.
Public Procurement and Demand Creation
- Steel accounts for nearly 18% of large public infrastructure project costs.
- Even 30% premium increases overall project expenditure by only 5.5%.
- Partial adoption raises budgets marginally, making transition economically manageable.
- Government procurement can function as anchor demand for green steel markets.
Strategic, Trade and Energy Security Gains
- Transition helps bypass EU Carbon Border Adjustment Mechanism carbon tariffs.
- India imports over 50 million tonnes of coking coal annually.
- Fossil fuel dependence exposes infrastructure costs to global price volatility.
- Green steel strengthens industrial resilience, trade competitiveness, and economic security.
Policy Framework and Implementation Pathways
- India launched Green Steel Taxonomy with 3-, 4-, and 5-star emission ratings.
- Certification enables carbon disclosure and procurement benchmarking.
- Procurement norms must shift from lowest cost to sustainability value.
- Alignment with PLI schemes and green hydrogen missions is essential.
- Pilot adoption through large public agencies can accelerate scale-up.