How India plans to push green steel with production, purchase mandates
Subscribe to enjoy similar stories. New Delhi: The Centre is working on green steel mandates for the local steel industry, supported by government procurement and financial incentives, as the world's second-largest maker of the alloy works to prepare the sector for the future. The upcoming National Green Steel Mission is likely to mandate steelmakers to make a fixed share of their overall output green, the people cited above said on the condition of anonymity.
The government will also support green steel with a public procurement policy, as well as interest subventions and production-linked incentives (PLIs). Green steel broadly refers to steelmaking with renewable energy, using technologies and equipment that emit less. The emission intensity of steel produced in India, at 2.54 tonnes of carbon dioxide per tonne of crude steel, is significantly higher than the global average of 1.91 tonnes, pointing to the need for decarbonisation to meet India's climate goals.
India's move to green steel also comes in the backdrop of several developed economies preparing levies on goods using carbon-spewing methods. The second person cited above said the green steel mission will be similar to the green hydrogen mission, with components of policy, incentives and a roadmap for the future. The mission is likely to be launched in the next couple of months.
Queries emailed to the Union steel ministry remained unanswered. “Green steel has to be defined properly," said A.S. Firoz, a steel industry expert.
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