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  • Sep 11, 2024
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India Pushes for Green Steel Amid Global Pressures

Why in the news?

India plans a green steel mission to meet global climate goals, with incentives and a procurement policy to boost sustainable practices and counter EU carbon tax impacts on imports.

Key Policy and Incentives:

  • India plans to introduce a procurement policy to boost demand for ‘green steel’ and encourage sustainable manufacturing in the steel industry.
  • Steel Secretary Sandeep Poundrik indicated that a green steel mission, similar to the green hydrogen mission, will be launched soon.
  • Incentives for small steel producers will be considered to promote environmentally friendly practices.

Global Pressure and Industry Impact:

  • The move is driven by global pressures, including the EU’s proposed carbon tax on imports like steel and aluminium.
  • India’s steel sector, a key component of its industrial strength and economic growth, must align with global environmental goals.

Implementation andRecommendations:

  • A steel ministry report outlines the need for both demand and supply-side initiatives to green the steel sector.
  • Recommendations include developing a Green Public Procurement (GPP) policy, creating a robust MRV system for emissions, and setting up an agency for bulk procurement of green steel.
  • The report also suggests collaborating with the Bureau of Energy Efficiency to develop emission measurement protocols and supporting green hydrogen projects.

What is Green Steel?

  • Definition: Steel produced without fossil fuels.
  • Green Hydrogen: Uses hydrogen (emitting only water) for steel production; if hydrogen is made from water and renewable electricity, it’s CO₂-free.
  • Blue Hydrogen: Hydrogen made from fossil fuels with carbon capture, utilisation, and storage (CCUS) technologies; considered low carbon.
  • Electric Arc Furnaces: Alternative to traditional furnaces; they use electricity to melt steel. However, if not powered by renewable sources, the steel may not be classified as green.

Key Initiatives for Promotion of Green Steel:

  • Historical Emissions: Reported CO2 emissions were 95.998 million tonnes (2010), 154.678 million tonnes (2014), and 135.420 million tonnes (2016) according to MoEFCC.
  • Net-Zero Commitment: Ministry of Steel aims for Net-Zero by 2070.
  • Short Term (FY 2030): Focus on reducing carbon emissions through energy/resource efficiency and renewable energy.
  • Medium Term (2030-2047): Emphasis on Green Hydrogen and Carbon Capture, Utilisation, and Storage.
  • Long Term (2047-2070): Adoption of disruptive technological innovations for net-zero transition.
  • Stakeholder Engagement: Continuous collaboration with various stakeholders.

Steps for Promoting Decarbonization in the Steel Industry:

  • Steel Scrap Recycling Policy, 2019: Enhances availability of domestic scrap to reduce coal use in steelmaking.
  • National Green Hydrogen Mission: MNRE’s mission includes green hydrogen production, with the steel sector as a stakeholder.
  • Motor Vehicles Scrapping Rules (Sept 2021): Increases scrap availability for the steel sector.
  • National Solar Mission (2010): Promotes solar energy use, aiding in emission reduction for the steel industry.
  • Perform, Achieve and Trade (PAT) Scheme: Incentivizes energy efficiency improvements in the steel industry.
  • Best Available Technologies (BAT): Steel sector adopts global BAT in modernization and expansion projects.
  • NEDO Model Projects: Japan’s NEDO projects for energy efficiency are implemented in steel plants.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times