India has become the first country to officially define ‘green steel,’ setting the carbon dioxide emission limit at less than 2.2 tonnes per tonne of finished steel. A star-rating system has also been introduced to assess green steel based on its emissions, with five stars awarded to steel emitting less than 1.6 tonnes of CO2.
Steel producers whose emissions exceed 2.2 tonnes will not qualify as green steel. Currently, India’s steel industry emits about 2.6 tonnes of CO2 per tonne, highlighting the challenge of transitioning to greener production methods. To support this shift, the Ministry of Steel has launched the ₹15,000 crore Green Steel Mission, which includes financial aid and public procurement policies. This mission allocates 37% of public procurement to five-star green steel and 30% to other green steel options.
The transition will require a capital investment of ₹260,000-270,000 crore, with cleaner technologies like hydrogen and biochar being considered. The Ministry is also seeking international support from agencies like the World Bank. To protect the domestic industry from rising imports, India is considering imposing a 20-25% safeguard duty on steel imports for two years, especially from China.
Through these initiatives, India is positioning itself as a global leader in sustainable steel production, advancing towards a greener future in manufacturing.
