India’s Coal-Powered Steel Plans Could Derail Net-Zero Target By 2070: GEM Reports

New Delhi, Dec 11 (KNN) India's plans to expand its coal-powered steelmaking capacity could undermine its commitment to achieving net-zero carbon emissions by 2070, according to a report released by Global Energy Monitor (GEM) on Tuesday, December 10, 2024.

Prime Minister Narendra Modi has set a target for India to achieve net-zero emissions by 2070, two decades later than the timeline recommended by scientists to avoid severe climate impacts.

However, efforts to ramp up steel production to meet the growing demand, fuelled by India’s rapid economic growth and increasing infrastructure development, risk exacerbating greenhouse gas emissions.

GEM, a U.S.-based research group that monitors global energy projects, warned that India’s investments in new coal-based steelmaking and its reliance on emissions-intensive blast furnaces threaten to derail the country’s 2070 net-zero goal.

The report also noted that these investments could result in approximately USD 187 billion in stranded assets.

"India's ongoing investments in new coal-based steelmaking, coupled with a young fleet of emissions-intensive blast furnaces, jeopardise the country's net-zero target," said GEM.

The expansion of blast furnace capacity could lead to an additional 680 million metric tons of carbon dioxide-equivalent emissions from the steel sector, GEM stated.

As the world’s second-largest producer of crude steel, India aims to increase its steelmaking capacity to 300 million metric tons by 2030, up from the current 180 million metric tons.

India is also leading the world in terms of steelmaking capacity under development, with approximately 258 million metric tons per year in announced or under-construction projects.

Steel producers in India generate 2.55 metric tons of carbon dioxide per ton of crude steel produced, which is 38 per cent higher than the global average of 1.85 metric tons, according to GEM.

At present, 85 per cent of the energy used in India’s steel sector comes from coal. Moreover, steelmaking from coal-based blast furnaces accounts for 69 per cent of the sector's capacity under development, while electric arc furnaces contribute just 13 per cent, the report added.

(KNN Bureau)