India Introduces Green Steel Taxonomy in Significant Move Toward Decarbonization
Click to start listening
New Delhi, Dec 12 (NationPress) In a significant initiative to decarbonize the steel industry, aligning with the net-zero emission intensity goal set for 2070, Union Minister of Steel and Heavy Industries H.D. Kumaraswamy introduced the Taxonomy of Green Steel for India during an event at Vigyan Bhavan on Thursday.
This taxonomy establishes the standards for green steel and represents a crucial milestone in India's quest for the production of low-emission steel.
As per the taxonomy, “Green Steel” is defined by its percentage of greenness, calculated from steel produced at a plant with CO2 equivalent emissions of less than 2.2 tonnes of CO2e per tonne of finished steel (tfs). The greenness percentage is determined by how much lower the plant's emission intensity is compared to the 2.2 t-CO2e/tfs benchmark.
The green steel ratings are categorized as follows:
1. Five-star green-rated steel: Emission intensity below 1.6 t-CO2e/tfs.
2. Four-star green-rated steel: Emission intensity between 1.6 and 2.0 t-CO2e/tfs.
3. Three-star green-rated steel: Emission intensity between 2.0 and 2.2 t-CO2e/tfs.
Any steel with emission intensity exceeding 2.2 t-CO2e/tfs will not qualify for a green rating.
Moreover, the taxonomy specifies that the criteria for green steel star ratings will undergo a review every three years.
The emissions scope includes Scope 1, Scope 2, and limited Scope 3, pertaining to finished steel production. Scope 3 emissions encompass agglomeration processes (such as sintering, pellet making, coke making), beneficiation, and the embodied emissions in purchased raw and intermediate materials, but exclude upstream mining, downstream emissions, and transport emissions both within and outside the steel plant premises.
The National Institute of Secondary Steel Technology (NISST) will act as the central authority for measurement, reporting, and verification (MRV), and will also issue greenness certificates and star ratings for steel products.
Certificates will be granted annually (based on the financial year). Should steel plants choose to undergo MRV more frequently, they may receive certificates multiple times within a year as necessary.
Kumaraswamy stated: "The launch of the Taxonomy of Green Steel signifies a vital advancement in our National Mission on Green Steel and our shared objective of moving towards a low-carbon economy."
Sandeep Poundrik, Secretary of Steel, emphasized that embracing the Taxonomy of Green Steel is mandatory for achieving environmental sustainability targets. He acknowledged the challenges this poses for the Indian steel industry but assured that the Ministry, with support from industry stakeholders, aims to achieve the green steel taxonomy to lower emission intensity to 2.2 tCO2 per tonne by 2030, ensuring global competitiveness and sustained growth.
In addition to the taxonomy launch, there was a stakeholder consultation on the draft National Mission on Green Steel (NMGS) and the draft Green Steel Public Procurement Policy (GSPPP) during the event. The Ministry committed to reviewing and incorporating stakeholder suggestions into the final versions of the NMGS and GSPPP.
