India is taking decisive steps to align steel usage in infrastructure with sustainability goals, marking a significant transformation in the sector. The Ministry of Steel recently introduced a green steel classification system, defining any steel with carbon emissions below 2.2 tonnes per tonne of output as “green steel.” This taxonomy, which includes performance tiers like five-star and three-star ratings, is set to guide procurement decisions in upcoming public infrastructure projects, making low-carbon materials a new standard for government construction.
Alongside this, the government has launched seven pilot projects under the National Green Hydrogen Mission to explore hydrogen-based steelmaking—an effort aimed at deep decarbonisation of the sector. These projects are part of the broader “Greening the Steel Sector” roadmap, which outlines a comprehensive approach involving energy-efficient technologies, carbon capture methods, and expansion of steel recycling practices.
Financial incentives are also in play. The Ministry of Steel is supporting industry-wide decarbonisation by offering low-interest loans for renewable energy adoption, carbon credit mechanisms, and potential R&D grants for cleaner production technologies. Additionally, new scrap policy frameworks and vehicle scrappage schemes are boosting access to secondary steel, promoting a circular economy model.
These coordinated efforts are expected to significantly reduce the environmental impact of steel-intensive infrastructure projects while maintaining economic efficiency. The shift also encourages domestic steelmakers to invest in innovation and adopt global best practices in sustainability. As India advances toward its 2070 net-zero emissions target, the integration of green steel into national infrastructure promises not only a cleaner construction ecosystem but also a competitive edge for India’s steel sector on the global stage.
