31 Jan 2026·Source: The Hindu

3 min

Environment & EcologyEconomyEDITORIAL

Green Steel: Shaping India's Climate Goals and Industrial Future

India must decarbonize steel sector to meet climate goals, secure economic competitiveness.

Photo by Tsuyoshi Kozu

Editorial Analysis

India's steel sector must transition to green steel to meet climate goals and maintain economic competitiveness. Policy support and investment in green technologies are crucial for this transition.

Main Arguments:

India's steel production is projected to triple by mid-century, increasing carbon emissions if current practices continue. The steel sector accounts for around 12% of India's carbon emissions.
Transitioning to green steel requires policy incentives to shift investment away from coal-based blast furnaces. The government has released the Greening Steel Roadmap and Green Steel Taxonomy, but more action is needed.
Key barriers to green steel include the high cost of green hydrogen, limited renewable energy for industry, and an informal scrap market. Addressing these barriers requires government support and investment.
Implementing a carbon pricing regime, promoting green steel through public procurement policies, and ensuring natural gas availability as a transition fuel are crucial steps. Government support is needed to set up hubs for green steel development and provide fiscal support to steel producers.

Counter Arguments:

The high cost of green technologies and limited availability of resources may make the transition to green steel challenging for some companies. Smaller players may need additional support to ensure an equitable transition.
Some argue that focusing on green steel may hinder economic growth and development. However, the author contends that green steel is essential for long-term economic competitiveness and sustainability.

Conclusion

India can decarbonize steel, secure economic competitiveness, and shape global industrial standards by combining decisive corporate action with a robust, market-aligned policy framework.

Policy Implications

The government should implement a carbon pricing regime, promote green steel through public procurement policies, ensure natural gas availability as a transition fuel, set up hubs for green steel development, and provide fiscal support to steel producers.

India aims to triple its steel production by mid-century, which presents a challenge due to the sector's high carbon emissions. The steel sector accounts for around 12% of India's carbon emissions today. To meet climate targets and ensure economic competitiveness, India needs to transition to green steel production. The government has released the Greening Steel Roadmap and Green Steel Taxonomy, but policy incentives are needed to shift investment away from coal-based blast furnaces. Key barriers include the high cost of green hydrogen, limited renewable energy for industry, and an informal scrap market. The author suggests implementing a carbon pricing regime, promoting green steel through public procurement policies, and ensuring natural gas availability as a transition fuel. Government support is needed to set up hubs for green steel development and provide fiscal support to steel producers.

Key Facts

Steel sector accounts for: 12% of India's carbon emissions

India aims to triple steel production by: mid-century

Green Steel Roadmap released: September last year

Green Steel Taxonomy released: December 2024

UPSC Exam Angles

GS Paper 3: Environment and Ecology, Industrial Policy

Connects to India's commitment to reduce carbon emissions under the Paris Agreement

Potential for questions on government schemes, technological advancements, and policy challenges

Visual Insights

Key Statistics on India's Steel Sector and Green Transition

Highlights key statistics related to India's steel production, carbon emissions, and renewable energy targets, crucial for understanding the context of green steel.

Steel Sector's Share of India's Carbon Emissions: 12%
India's Target for Net-Zero Emissions: 2070
Renewable Energy Installed Capacity (2026): 175 GW

More Information

Background

The concept of 'green steel' emerged as a response to the growing awareness of the steel industry's significant contribution to global carbon emissions. Traditional steelmaking processes, particularly those relying on coal-fired blast furnaces, have been major sources of greenhouse gases. The push for cleaner steel production gained momentum in the late 20th and early 21st centuries, driven by international climate agreements and technological advancements.

Early efforts focused on improving energy efficiency and using alternative raw materials. The development of hydrogen-based steelmaking, while still in its early stages, represents a potentially transformative shift away from carbon-intensive methods. The history of steel production is intertwined with industrial revolutions, and the current transition to green steel marks a new chapter focused on sustainability.

Latest Developments

Recent developments in green steel include pilot projects and investments in hydrogen-based steelmaking technologies across the globe. Several European steelmakers have announced plans to phase out coal-fired blast furnaces and transition to hydrogen-based production. Government policies and funding mechanisms are increasingly supporting green steel initiatives.

For example, the European Union's Green Deal includes provisions to promote the adoption of green technologies in the steel sector. In India, the government's focus on green hydrogen production and renewable energy capacity is expected to facilitate the growth of green steel. The development of carbon capture and storage (CCS) technologies is also being explored as a potential pathway for reducing emissions from existing steel plants.

The future outlook involves scaling up green steel production to meet growing demand while minimizing environmental impact.

Frequently Asked Questions

1. What is 'green steel' and why is it important for India?

Green steel refers to steel produced using methods that significantly reduce or eliminate carbon emissions compared to traditional steelmaking. It is crucial for India because the steel sector contributes significantly (12%) to the country's carbon emissions, and India aims to triple its steel production by mid-century. Transitioning to green steel is essential to meet climate goals and maintain economic competitiveness.

2. What are the key facts about India's green steel initiatives for UPSC Prelims?

Key facts include: the steel sector accounts for 12% of India's carbon emissions, India aims to triple steel production by mid-century, the Green Steel Roadmap was released in September last year, and the Green Steel Taxonomy was released in December 2024. Remember these dates and percentages for potential MCQs.

3. What are the major barriers to green steel production in India?

Major barriers include the high cost of green hydrogen, limited availability of renewable energy for industrial use, and the presence of a large informal scrap market. These factors make it difficult to shift investments away from traditional coal-based blast furnaces.

4. What policy incentives are suggested to promote green steel in India?

The author suggests implementing a carbon pricing regime, promoting green steel through public procurement policies, and ensuring the availability of natural gas as a transition fuel. A carbon pricing regime would make traditional steel production more expensive, incentivizing green alternatives.

5. How does the Green Steel Taxonomy help in achieving climate goals?

The Green Steel Taxonomy, released in December 2024, likely provides a framework for defining and classifying green steel production methods. This helps investors and policymakers identify and support genuinely low-carbon steelmaking, directing investments towards sustainable practices.

6. What is the significance of the 400 million tonnes steel production target by mid-century?

The 400 million tonnes target highlights India's ambition to become a major steel producer. However, achieving this target sustainably requires a rapid shift to green steel production methods to avoid a significant increase in carbon emissions.

7. What are the recent developments related to green steel globally?

Recent developments include pilot projects and investments in hydrogen-based steelmaking technologies, and announcements by European steelmakers to phase out coal-fired blast furnaces. Government policies and funding mechanisms are increasingly supporting green steel initiatives.

8. How can public procurement policies promote green steel?

By prioritizing green steel in government projects (e.g., infrastructure development), the government can create a guaranteed market for green steel producers. This encourages investment in green steel technologies and helps drive down production costs.

9. Who are the key personalities associated with green steel in India, as per the topic?

According to the topic, Sanjiv Paul and Bhupender Yadav are key personalities associated with green steel in India. Knowing their roles and perspectives can be helpful for the interview stage.

10. What is the historical background of the push for 'green steel'?

The push for 'green steel' emerged due to growing awareness of the steel industry's significant contribution to global carbon emissions. Traditional steelmaking processes, particularly coal-fired blast furnaces, are major sources of greenhouse gases. The movement gained momentum in the late 20th and early 21st centuries.

Practice Questions (MCQs)

1. Consider the following statements regarding 'Green Steel': 1. Green steel production primarily involves replacing coal with green hydrogen in the steelmaking process. 2. The Greening Steel Roadmap is an initiative by the World Steel Association to promote sustainable steel production globally. 3. Carbon Capture and Storage (CCS) technologies are irrelevant to green steel production. Which of the statements given above is/are correct?

A.1 only
B.2 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: Green steel production indeed focuses on using green hydrogen (produced from renewable sources) instead of coal to reduce carbon emissions. Statement 2 is INCORRECT: The Greening Steel Roadmap is an initiative by the Indian government, not the World Steel Association. Statement 3 is INCORRECT: CCS technologies are relevant as they can help capture and store carbon emissions from existing steel plants, contributing to a reduction in overall emissions, even if not eliminating them entirely.