India is preparing a policy shift that would see large steel producers move away from broad, one-size-fits-all carbon norms towards customised emission reduction targets. The proposal is aimed at ensuring a more practical and achievable path for decarbonisation within the country’s steel sector, while aligning with wider national climate commitments.
Under the plan, each company’s targets would be based on its operational scale, production processes, and installed capacity. This approach recognises that firms differ widely in technology adoption, efficiency levels, and raw material usage, making uniform standards less effective. Tailored benchmarks would encourage companies to reduce emissions in a way that reflects their specific operations, without compromising competitiveness.
The steel industry is one of the largest contributors to carbon emissions, both globally and within India. As demand for steel continues to grow on the back of infrastructure and industrial expansion, balancing environmental responsibility with economic growth has become a pressing challenge. The new framework aims to drive gradual but meaningful reductions in emissions, rather than imposing unrealistic mandates that could disrupt output.
Policy experts highlight that this shift would also complement ongoing investments in green technologies such as Electric Arc Furnaces, hydrogen-based steelmaking, and carbon capture. By setting differentiated targets, the government expects to accelerate adoption of cleaner processes across the sector, while allowing room for innovation and phased transition.
Industry representatives have welcomed the proposal, noting that customised norms would provide greater clarity and fairness. The move is expected to not only help steelmakers meet global sustainability expectations but also strengthen India’s position in international markets, where low-carbon production is increasingly valued.
