Government Sets Ambitious Goals for Decarbonising Steel Sector

ENA Sectors 2024-09-11 17:03:04 New Delhi, Sep 11 (KNN) India is poised to unveil a comprehensive policy to promote green steel production, a significant step in its broader strategy to tackle climate change and reduce greenhouse gas emissions from its steel industry. This announcement was made by Sandeep Poundrick, Secretary of the Ministry of Steel, during a specialised event reported by Reuters. The new policy will focus on several key areas, including public procurement of green steel products and incentivising smaller steel manufacturers to adopt low-carbon production methods. This move is part of India's effort to address the sectors considerable environmental impact. Currently, Indias steel sector is responsible for 12 per cent of the nations greenhouse gas emissions, with an emission rate of 2.5 tonnes of CO2 per tonne of steel produced. This is notably higher than the global average of 1.9 tonnes. To facilitate this transition, the Ministry of Steel has established 14 working groups tasked with devising a comprehensive strategy for the sector's decarbonisation. These groups comprise experts from industry, academia, think tanks, and government agencies. The results of their deliberations have been consolidated into a detailed report that outlines a roadmap for achieving lower carbon emissions in steel production. The report identifies three primary demand-side policy levers: developing a taxonomy of green steel, monitoring CO2 emissions, and creating market incentives. It also highlights seven supply-side measures including energy efficiency, renewable energy integration, material efficiency, technology upgrades, and the adoption of green hydrogen. Indias steel industry is currently navigating a challenging landscape marked by escalating energy costs, stringent environmental regulations, and the pressing need for technological innovation. These factors are compounded by the European Unions Carbon Border Adjustment Mechanism (CBAM), which has prompted India to explore alternative export markets. Regions such as Africa, Latin America, and the Middle East are being considered as potential new destinations for Indian steel exports. Notably, hot-rolled and cold-rolled flat products constitute the majority of Indias steel exports, with five EU countries accounting for 25 per cent of these shipments in the fiscal year 2022/2023. As India moves forward with its green steel initiative, the anticipated policy and its implementation will be closely watched, both for its potential impact on global steel markets and its role in advancing India's climate goals. (KNN Bureau) 39236 https://knnindia.co.in/news/newsdetails/sectors/government-sets-ambitious-goals-for-decarbonising-steel-sector 2024-09-11 17:03:04 knnindia.co.in Government Sets Ambitious Goals for Decarbonising Steel Sector