In a landmark move toward industrial decarbonisation, the Indian government has formally defined “green steel” for the first time, marking a pivotal moment in its climate action strategy. The decision aims to reduce emissions from the steel industry, which currently contributes nearly 12 per cent of the country’s total greenhouse gas (GHG) emissions. This definition is expected to serve as a foundation for policy formulation, certification standards, and incentive schemes that promote sustainable steelmaking.
According to the official notification, “green steel” will be classified based on the volume of carbon emissions produced per tonne of steel, with benchmarks established to qualify for the label. This includes the use of renewable energy sources, low-emission technologies such as hydrogen-based direct reduced iron (DRI), and the adoption of electric arc furnaces (EAFs). The government has indicated that these efforts will be aligned with broader carbon trading and credit mechanisms under development.
The move is part of India’s commitment to achieving net-zero emissions by 2070 and comes at a time when the global steel market is increasingly demanding sustainable and traceable products. The Ministry of Steel, in collaboration with NITI Aayog and industry stakeholders, is also exploring policy support such as tax benefits, easier financing for green projects, and international collaboration to accelerate the transition.
Industry leaders have welcomed the announcement, viewing it as an opportunity to attract green investments, access premium markets, and strengthen India’s global position in clean manufacturing. However, challenges remain, particularly for small and medium enterprises (SMEs) that may lack access to advanced technology or capital.
The introduction of a formal definition is expected to pave the way for a green steel certification framework, creating accountability and transparency in the industry’s decarbonisation journey.
