Context:
India is exploring pathways for green steel production as part of its broader net-zero emission target by 2070, though challenges remain in financing, technology adoption, and procurement frameworks.
Key Highlights:
- Government Initiative
- The Ministry of Steel has created 14 task forces to design a roadmap for steel sector decarbonisation.
- A Green Steel Taxonomy has been introduced with a 3-star, 4-star, and 5-star rating system based on emission intensity.
- Economic and Policy Measures
- Government procurement of green steel may increase infrastructure project costs by around 1.1%.
- Integration with schemes like:
- Production Linked Incentive (PLI) schemes
- Green Hydrogen Mission.
- Global Trade Considerations
- Green steel production could help India avoid EU Carbon Border Adjustment Mechanism (CBAM) tariffs.
- Reduces dependence on imported coking coal, improving energy security.
Relevant Prelims Points:
- Green Steel
- Steel produced using low-carbon technologies, including hydrogen-based processes and renewable energy.
- Decarbonisation
- Process of reducing carbon emissions across sectors to mitigate climate change.
- Carbon Border Adjustment Mechanism (CBAM)
- EU policy imposing carbon tariffs on imports from countries with weaker climate policies.
Relevant Mains Points:
- Importance of Steel Sector Decarbonisation
- Steel industry contributes significantly to global greenhouse gas emissions.
- Transitioning to green steel supports India’s climate commitments under the Paris Agreement.
- Challenges
- High cost of green technologies.
- Limited availability of green hydrogen and renewable energy.
- Lack of market incentives for low-carbon steel.
- Policy Solutions
- Promote green procurement policies to create demand.
- Develop verification mechanisms for emission intensity.
- Encourage public sector projects to adopt green steel.
- Way Forward
- Pilot projects through major public infrastructure agencies such as Indian Railways.
- Align industrial policy with climate goals.
- Encourage international climate finance and technology transfer.
UPSC Relevance:
- GS Paper III: Climate change mitigation, sustainable industrial policy, green technologies.