India has released a taxonomy of green steel, making it the first country in the world to take the initiative.
Green steel is produced from a steel plant with a CO2 equivalent emission intensity of less than 2.2 tonnes of CO2e per tonne of finished steel.
Steel’s greenness will be stated as a percentage based on how much the emission intensity of the steel plant falls below the 2.2 t-CO2e/tfs threshold.
Salient features of the taxonomy of green steel:
Based on the greenness, the green steel will be rated as follows:
• Five-star green-rated steel: Steel with emission intensity lower than 1.6 t-CO2e/tfs.
• Four-star green-rated steel: Steel with emission intensity between 1.6 and 2.0 t-CO2e/tfs.
• Three-star green-rated steel: Steel with emission intensity between 2.0 and 2.2 t-CO2e/tfs.
• Steel with emission intensity higher than 2.2 t-CO2e/tfs shall not be eligible for green rating.
The scope of emissions will include Scope 1, Scope 2, and limited Scope 3, up to finished steel production. The scope 3 emissions shall include agglomeration (including sintering, pellet making, and coke making), beneficiation, and embodied emissions in purchased raw materials and intermediary products, but not include upstream mining, downstream emissions, and transportation emissions, both within and outside the gates of a steel plant.
The threshold limit for defining the star rating of Green Steel will be reviewed every three years.
Nodal agency:
The National Institute of Secondary Steel Technology (NISST) will serve as the nodal agency for measurement, reporting, and verification (MRV) as well as for issuing the greenness certificates and star ratings for the steel.
India, the world’s first country to release a taxonomy of green steel:
Globally, there is no commonly accepted definition of green steel; India is the first nation to release the Taxonomy of Green Steel, according to a statement released by the Ministry of Steel.
The release of the taxonomy marks a crucial step in advancing the National Mission on Green Steel.
Thought leadership:
Mr H D Kumaraswamy, Union Minister of Steel & Heavy Industries, unveiled the taxonomy in the presence of Mr Bhupathi Raju Srinivasa Varma, Minister of State for Steel and Heavy Industries, Officers of the Steel Ministry, CPSEs, Steel industry players, Think Tanks, Academia and foreign representatives in India including a delegation of the European Union.
Mr Varma said the taxonomy represents a transformative framework in steel production that will help define green steel, foster innovation, and create a market for low-carbon products in India.
Secretary Steel Mr. Sandeep Poundrik said that the adoption of the taxonomy is not an option but a mandate to achieving the environmental sustainability target. “This will be challenging for the Indian steel sector. However, the Ministry, with the help of all the industry stakeholders, will achieve the taxonomy of green steel to reduce the emission intensity of 2.2 tCO2 per tonne by 2030, ensuring global competitiveness and continued growth.”
