India is preparing a new national steel policy aimed at significantly reducing carbon emissions while expanding production capacity. The draft policy lays out a roadmap for greener steel production, targeting a 25 percent reduction in emissions over the next decade and setting ambitious capacity targets.
India plans to cut emissions from steel production
India plans to cut emissions from its steel sector by up to 2 tonnes of carbon dioxide, according to a draft prepared by the Ministry of Steel per metric ton of finished steel by 2035-36.
Currently, Indian steel mills emit about 2.65 tons of carbon dioxide per metric ton of finished steel, which is about 32 percent higher than the global average of 2 tons.
Key measures to decarbonization of the steel sector
The proposed policy includes several structural changes aimed at reducing emissions:
- Promoting gas-based steel production to replace coal processes
- Wider use of ferrous scrap in manufacturing
- Tax incentives for plants that successfully reduce emissions
These measures are designed to accelerate the transition to low-carbon steel production technologies.
Reducing dependence on coking coal
The policy also aims to reduce India's dependence on imported coking coal:
- Current import dependence: ~90 percent
- Target level for
