The growing gap between the decarbonization goals announced by Indian companies and the concrete actions needed to achieve them could lock the sector into carbon-intensive technologies for decades, threatening its net zero ambitions and long-term global competitiveness, according to the latest report from the Institute for Energy Economics and Financial Analysis (IEEFA), released on Wednesday, April 29.
The report titled Decarbonization readiness in India's steel sector It says that while the Indian steel industry is increasingly aligning its climate commitments with the Paris Agreement, progress in operational readiness, technology adoption and financial alignment remains significantly behind.
The next decade will be a defining period for the Indian steel industry. Strategic decisions by companies, investors and policymakers are expected to determine the pace and success of steel decarbonization in the country, it said.
India's steel sector is at a critical juncture. The report notes that while demand growth in many major steel-producing countries has stabilized or declined, India continues to post strong growth, making its decarbonization path increasingly important to global efforts to reduce emissions.
The study assessed ten steel producers, including seven Indian companies and three international competitors, to assess the alignment between their emissions reduction commitments and the actual implementation of strategic
