New Delhi: The Central Government is developing a policy framework for formulating a strategy and an action plan for decarbonizing the Indian steel sector. For this purpose, the Ministry of Steel constituted 14 high-powered task forces to carry out discussions on various factors related to decarbonization. The task force includes members from the industry and academia, think tank innovators, various ministers, and government departments. The inputs of the task force have been compiled into a comprehensive report named ‘Greening the Steel Sector in India: Roadmap and Action Plan’, serving as a critical milestone in the efforts to decarbonize the steel sector.
India’s steel sector accounts for 12 percent of the country’s greenhouse gas emissions. Considering this, the report provides a detailed analysis of the current state of the steel industry and the steps required to transform it into a sustainable model. It focuses on critical areas such as technological innovation, policy reforms and the financial mechanisms necessary to support this transition. It primarily explores three key policies from the demand side, including developing a taxonomy of green steel, monitoring CO2 emissions, and generating market-based incentives. It also examines supply-side factors such as energy efficiency, renewable energy, material efficiency, process transition, and green hydrogen.
The report brings forth the challenges faced by the steel sector which include climate commitments, rising energy costs, stringent environmental regulations, and the need for technological innovation. Furthermore, it addresses these challenges and offers actionable insights that can ensure that the Indian steel industry remains competitive domestically as well as globally.
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