Germany's proposed low emission steel standard may pose challenges to Indian industry: GTRI
Germany's proposed Low Emission Steel Standard (LESS) is expected to pose new challenges to Indian industry which is already reeling with lower exports, higher imports and Europe's carbon tax, think tank GTRI said on Friday.
India's steel exports have dropped by 31.2 per cent from USD 31.7 billion in 2021-22 to USD 21.8 billion in 2023-24, while imports have increased by 37 per cent, from USD 17.3 billion to USD 23.7 billion, making India a net importer, it said.
The Global Trade Research Initiative (GTRI) said that the Indian steel industry is not legally bound to follow the new German steel standard, but ignoring it could hurt domestic exports.
«Global markets are demanding low-carbon products, and Indian steel producers not aligning with LESS may struggle to compete,» GTRI Founder Ajay Srivastava said.
He added that India's steel industry must prepare to comply with new steel standards introduced by Germany, but may soon be adopted by other developed countries.
LESS is a voluntary labelling programme that classifies steel based on the carbon dioxide emissions released during the pre-production and production stages of steel.
It is the latest in a series of measures by many countries to cut emissions in steel making through the use of better technology and greener energy sources. The European Union's CBAM (carbon border adjustment mechanism) or carbon tax is one such measure.
These measures assume significance as the steel industry accounts for 7 per cent of global carbon dioxide
(CO2) emissions,
