The upcoming emission reduction targets will be aligned with the 2017 National Steel Policy, and companies that fail to meet it will be subject to fines. However, producers will be allowed to offset their targets with carbon credits, giving them the flexibility to ensure accountability.
Various targets for small and large steel mills
According to the sources, small steel mills will have lower emission reduction targets, while larger producers will be required to meet stricter targets. This framework is based on the 2025 Greenhouse Gas Intensity Target Rules, a draft published by the Ministry of Environment, Forestry and Climate Change (MoEFCC) as part of the broader Indian Carbon Credit Trading Scheme 2023, designed to create a domestic carbon market.
Compliance with these emission standards will be closely monitored by the Bureau of Energy Efficiency (EEB) using a detailed methodology to ensure accurate tracking of emissions in the steel sector.
This move underscores India's commitment to reducing its carbon footprint in heavy industry while creating growth opportunities in the carbon credits market.
