Government is committed to Net-Zero target by 2070. Towards this, in the short term (FY 2030), reduction of carbon emissions in the steel industry through promotion of energy and resource efficiency as well as renewable energy is being focused on. For the medium term (2030-2047), utilisation of Green Hydrogen and Carbon Capture, Utilisation and Storage are the focus areas. For the long term (2047-2070), disruptive alternative technological innovations can help achieve the transition to net-zero. For this purpose, the technological steps taken by Government to reduce the carbon footprint in the steel sector are as under:-

1. 14 Task Forces had been constituted with engagement of industry, academia, think tanks, S&T bodies, different Ministries and other stakeholders to discuss, deliberate and recommend upon the different levers for decarbonisation of the steel sector. These also span technologies including Energy Efficiency, Renewable Energy, Green Hydrogen, Material Efficiency, Process Transition from coal based DRI to Natural Gas based DRI, Carbon Capture, Utilisation and Storage (CCUS) and Use of Biochar in steel industry.
2. Ministry of New and Renewable Energy (MNRE) has announced National Green Hydrogen Mission for green hydrogen production and usage. The steel sector is also a stakeholder in the Mission and has been allotted Rs. 455 crores under this Mission to promote the utilisation of Green Hydrogen in the iron and steel making.

• (iii) National Solar Mission launched by Ministry of New and Renewable Energy in January 2010 promotes the production and use of solar energy which contributes in reducing the emissions in steel industry by increasing the uptake of renewable energy.
• (iv) Perform, Achieve and Trade (PAT) scheme, under National Mission for Enhanced Energy Efficiency, incentivizes steel industry to reduce energy consumption.

5. The steel sector has adopted several Best Available Technologies (BAT) available globally in the modernization and expansions projects.

• (vi) Japan's New Energy and Industrial Technology Development Organization (NEDO) Model Projects for Energy Efficiency Improvement have been implemented in some steel plants.

7. The Carbon Credit Trading Scheme (CCTS) has been notified by the Central Government on 28^thJune, 2023, which provides an overall framework for the functioning of the Indian Carbon Market and includes detailed roles and responsibilities of stakeholders towards operationalization of the scheme. The objective of CCTS is to reduce or avoid greenhouse gas emissions from various sectors of Indian economy by pricing the emissions through a carbon credit certificate trading mechanism. CCTS is intended to incentivize the emissions reduced by steel companies.

The exports of Finished Steel from India to European Union, UK, USA and India’s total exports of Finished Steel for the last 5 years i.e. FY 2019-20 to FY 2023-24 are as under:-

(‘000 tonnes)

Country / Region	2019-20	2020-21	2021-22	2022-23	2023-24
European Union (EU)	1864	2426	3576	2488	4031
UK	83	86	237	172	326
USA	51	27	214	165	95
India’s Total Exports	8,355	10,784	13,494	6,716	7,487
Source: Joint Plant Committee (JPC)

 

The European Union has come up with several policies/regulations recently such as the Carbon Border Adjustment Mechanism (CBAM) which may increase compliance burden for Indian steel exports to EU. In December 2023, the UK Government announced its plans to implement a Carbon Border Adjustment Mechanism (UK CBAM) from 2027, which may increase compliance burden for Indian steel exports to UK. Concerns on EU Carbon Border Adjustment Mechanism have been raised in relevant WTO bodies. 

This information was given by the Minister of State for Steel and Heavy Industries, Shri Bhupathi Raju Srinivasa Varma in a written reply in the Rajya Sabha today.

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MG

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