The Urgency of Green Steel in India
India’s steel industry, the world’s second-largest producer, faces a dual challenge: meeting soaring demand while reducing its carbon footprint. Accounting for 12% of India’s total emissions and 8% of global steel sector emissions, the industry is pivotal to achieving India’s climate goals, including net-zero emissions by 2070. This blog explores the rise of green steel, its benefits, challenges, and actionable pathways for manufacturers to transition sustainably.
India’s Steel Industry: Current Landscape
Consumption & Production
Per Capita Consumption: India’s per capita steel consumption stands at 97.7 kg (2024), far below the global average of 221.8 kg. The National Steel Policy aims to raise this to 160 kg by 2030.
Production Capacity: India produces 150 million tonnes (MT) of crude steel annually, contributing 8% of global output. However, reliance on coal-intensive methods like BFBOF routes results in high emission intensity (2.54 tCO₂e/tonne vs. the global average of 1.91 tCO₂e/tonne).
Scrap Utilization & Emission Challenges
Scrap accounts for just 21% of India’s steel production, compared to 85% in Turkey and 68% in the USA.
Limited scrap availability and coal dependency make India’s steel sector a major CO₂ emitter, necessitating urgent decarbonization.
The Green Steel Revolution: Why It Matters
Environmental & Economic Drivers
1. Emission Reduction: Transitioning to green steel could cut India’s steel sector emissions by 60-65% by 2030, aligning with climate commitments.
2. Regulatory Compliance: Global policies like the EU’s Carbon Border Adjustment Mechanism (CBAM) and India’s Carbon Credit Trading Scheme (CCTS) mandate low-carbon steel for export competitiveness.
3. Market Demand: Sectors like automotive, construction, and renewables increasingly demand green-certified steel. India’s green building market is projected to grow at 7.5% CAGR (2023–2028).
Technological Pathways
Electric Arc Furnaces (EAF): Utilize 70–98% scrap steel, reducing reliance on coal.
Green Hydrogen-based DRI: Replaces coking coal with hydrogen, slashing emissions.
CCUS & Renewable Energy: Integrate carbon capture and solar/wind energy to decarbonize production.
Conventional vs. Green Steel: A Comparative Analysis
| Parameter | Conventional Steel | Green Steel |
| Production Route | BFBOF (coal dependent) | EAF, DRI with green hydrogen |
| Emission Intensity | 2.4–2.8 tCO₂e/tonne | 0.5–2.2 tCO₂e/tonne |
| Scrap Usage | 15–20% | 70–98% |
| Regulatory Risk | High (noncompliance penalties) | Low (aligned with CBAM/CCTS) |
| OPEX | Volatile (fossil fuel costs) | Stable (renewables, scrap) |
India’s Green Steel Taxonomy: A Framework for Sustainability
Launched in 2024, India’s Green Steel Taxonomy categorizes steel based on emission intensity:
Star Ratings:
3 Star: 1.6–2.0 tCO₂e/tonne
4 Star: 0.5–1.6 tCO₂e/tonne
5 Star: <0.5 tCO₂e/tonne
Key Features:
Mandates Scope 1, 2, and limited Scope 3 emissions reporting.
Annual certification by the National Institute of Secondary Steel Technology (NISST).
Aligns with global standards like EU CBAM and Responsible Steel.
Government Initiatives
National Green Hydrogen Mission: ₹455 crore allocated for pilot projects using hydrogen in steelmaking.
Solar Energy Integration: Reduces reliance on fossil fuels.
Roadmap to 2030: Immediate Actions for Steel Manufacturers
1. Short Term (2025–2026):
Adopt Best Available Technologies (BATs) for energy efficiency.
Increase renewable energy adoption and scrap utilization.
2. Medium Term (2027–2030):
Pilot green hydrogen and biochar technologies.
Transition DRI plants to natural gas.
3. Long Term (2047-2070):
Scale CCUS and direct electrolysis technologies.
Phase out high-emission capacity.
How Conserve Consultants Empowers Your Green Transition
As India’s trusted sustainability partner, Conserve Consultants offers end-to-end solutions:
Carbon Accounting: Study of your process and account for carbon emissions for Scope 1, 2, and 3
Decarbonization Strategies: Tailored roadmaps to reduce emissions and achieve net-zero targets.
Regulatory Compliance: Navigate CBAM, CCTS, and Green Steel Taxonomy requirements.
Certification Support: Streamline MRV processes and secure star ratings.
Funding Access: Leverage government schemes and international collaborations.
Why Choose Us?
600+ projects completed, including 150+ Platinum-certified initiatives.
Expertise in ESG, energy efficiency, and circular economy models.
Lead the Green Steel Movement with Conserve Consultants
India’s steel sector stands at a crossroads. By embracing green steel, manufacturers can futureproof operations, tap into global markets, and contribute to a sustainable economy. Partner with Conserve Consultants to unlock innovative solutions, reduce costs, and achieve regulatory excellence.
Contact Us Today! Email: info@conserveconsultants.com | Call: +9190030 97071
