India becomes first nation to release the Taxonomy of Green Steel

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India is committed to decarbonise the steel sector in alignment with net-zero emission intensity target by 2070.To mark this, as a historic milestone in India’s journey towards low-emission steel, Shri H D Kumaraswamy, Union Minister of Steel & Heavy Industries, ​ unveiled  ​the Taxonomy of Green Steel​ for India during an event held at Vigyan Bhavan, on ​12th December 2024​ in the presence of Shri Bhupathi Raju Srinivasa Varma, Minister of State for Steel and Heavy Industries, Officers of Steel Ministry, representatives from other concerned Ministries, CPSEs, ​Steel industry players, Think Tanks, Academia and some foreign representatives in India including a delegation of European Union. Globally, there is no commonly accepted definition of green steel; India is the first nation to release the Taxonomy of Green Steel.

The salient features of green steel taxonomy –

  1. “Green Steel” shall be defined in terms of percentage greenness of the steel, which is produced from the steel plant with CO2 equivalent emission intensity less than 2.2 tonnes of CO2e per tonne of finished steel (tfs). The greenness of the steel shall be expressed as a percentage, based on how much the steel plant’s emission intensity is lower compared to the 2.2 t-CO2e/tfs threshold.
  2. Based on the greenness, the Green steel shall be rated as follows:
  • Five-star green-rated steel: Steel with emission intensity lower than 1.6 t-CO2e/tfs.
  • Four-star green-rated steel: Steel with emission intensity between 1.6 and 2.0 t-CO2e/tfs.
  • Three-star green-rated steel: Steel with emission intensity between 2.0 and 2.2 t-CO2e/tfs.

Steel with emission intensity higher than 2.2 t-CO2e/tfs shall not be eligible for green rating.

  1. The threshold limit for defining the star rating of Green Steel shall be reviewed every three years.
  2. The scope of emissions shall include Scope 1, Scope 2, and limited Scope 3, up to finished steel production. Scope 3 emissions shall include agglomeration (including sintering, pellet making, coke making), beneficiation, and embodied emissions in purchased raw materials and intermediary products, but shall not include upstream mining, downstream emissions and transportation emissions, both within and outside the gates of a steel plant.
  3. The National Institute of Secondary Steel Technology (NISST) shall serve as the nodal agency for measurement, reporting, and verification (MRV) as well as for issuing the greenness certificates and star ratings for the steel.
  4. The certificate shall be issued on yearly basis (financial year). In case the steel plants opt for MRV more frequently, then the certificate may be issued more than once in a year as per the requirement.

In addition to the release of taxonomy, stakeholder consultation on draft National Mission on Green Steel (NMGS) and draft Green Steel Public Procurement Policy (GSPPP) was also conducted during the event. The Ministry has assured that the suggestions and inputs received from stakeholders will be reviewed and integrated in finalising the NMGS and GSPPP.

PIB

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