Scaling Green Steel Production and Public Procurement to Achieve India’s Net-Zero Emissions Target by 2070
To reach net-zero emissions by 2070, India must decarbonize its steel sector, a major industrial polluter. The Ministry of Steel has identified 14 task forces to create a roadmap for low-carbon production. While 'green steel' carries a price premium, its impact on large infrastructure project costs is estimated at only 5.5%. The article suggests using public procurement as a lever, leveraging the 'Green Star' rating system and 'Made in India' QR codes for verification. Aligning Production Linked Incentives (PLI) with green hydrogen missions is crucial for scaling industry response and bypassing international carbon tariffs.
Key Points
- Steel remains one of India's largest industrial sources of CO2 emissions, making its decarbonization vital for climate goals.
- A 'Green Steel Taxonomy' with a 3 to 5-star rating system has been introduced to rank steel by emission intensity.
- International examples like Japan's Green Purchasing framework and California's Buy Clean model offer templates for green procurement.
- Transitioning to green steel helps bypass carbon tariffs like the EU's Carbon Border Adjustment Mechanism (CBAM).
Exam Facts
- Net-Zero Target Year: 2070.
- Steel's Share in Infrastructure Capex: Approximately 18%.
- Verification Tool: Green Star rating and Quality Council of India’s accreditation.
- Global Mechanism: EU Carbon Border Adjustment Mechanism (CBAM).
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