Posted on 13 Dec 2024
The Indian Ministry of Steel has announced a formula for determining green steel, Reuters reports.
The ministry classifies steel into three categories depending on the amount of carbon emissions per ton of alloy produced.
Steel produced with CO2 emissions of less than 2.2 tons per ton of rolled steel will be defined as “green,” according to the ministry’s presentation, and steel with emissions below 1.6 tons per ton of alloy will be defined as “five-star green.”
At the same time, steel produced with emissions of 2-2.22 tons per ton of rolled steel will be classified as “three-star green” – the least environmentally friendly of all.
According to the government document, the threshold for determining the categories will be reviewed every three years. India, the world’s second-largest steel producer after China, is working on a green steel policy in an attempt to decarbonize its procurement and production.
India needs to invest $120 billion to reach its target steel production level of 300 million tons by 2030, according to the Ministry of Steel. Without these investments and amid rising demand, the country could become a net steel importer by that time.
As GMK Center reported earlier, India has increased its imports of rolled steel to a 7-year high of 5.7 million tons since the beginning of the 2024/2025 financial year (April-October 2024). China is the key supplier of rolled steel to the Indian market. Steel consumption during this period reached a 7-year high of 85.7 million tons.
Source:GMK Center
