On December 12, 2024, Shri H.D. Kumaraswamy, Union Minister of Steel & Heavy Industries, unveiled India’s Green Steel Taxonomy

The Green Steel Taxonomy aims to align India’s steel production with its net-zero emissions target by 2070. This initiative is part of the broader effort to reduce the carbon footprint of key industries and inculcate sustainability within the manufacturing sector.

Key Highlights:

1. Definition of Green Steel:
• Green steel is defined in terms of its emission intensity, which should be lower than 2.2 tCO2e per tonne of finished steel (tfs).
• The greenness of steel is expressed as a percentage, based on the reduction of emissions compared to the 2.2 tCO2e/tfs threshold.
2. Green Steel Rating System:
• The steel is rated based on its emission intensity, with the following categories:
• Five-star: Emission intensity lower than 1.6 tCO2e/tfs.
• Four-star: Emission intensity between 1.6 and 2.0 tCO2e/tfs.
• Three-star: Emission intensity between 2.0 and 2.2 tCO2e/tfs.
• Steel with emissions above 2.2 tCO2e/tfs will not be eligible for a green rating.
• The threshold limit for defining the star rating of Green Steel shall be reviewed every three years.
3. Scope of Emissions:
• The emissions to be considered include Scope 1, Scope 2, and limited Scope 3 emissions, up to finished steel production.
• Scope 3 emissions will include agglomeration processes, beneficiation, and emissions from purchased raw materials, but exclude mining, transportation, and downstream emissions.
4. Certification and Verification:
• The National Institute of Secondary Steel Technology (NISST) will serve as the nodal agency for the measurement, reporting, and verification (MRV) of emission data.
• Greenness certificate shall be issued on yearly basis (financial year). In case the steel plants opt for MRV more frequently, the certificate may be issued more than once in a year as per the requirement.