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The Indian government is planning a INR 5,000 crore scheme to promote sustainable practices in the steel sector. Targeting both primary and secondary steel makers, the initiative aims to reduce carbon emissions by incentivizing the adoption of cleaner technologies and alternative materials. Companies will be rewarded based on the reduction in emissions compared to previous years. This step aligns with India's commitment to the Paris Agreement and its net-zero ambitions. The domestic steel industry, which contributes 12 percent of national greenhouse gas emissions, stands to be a major focus of decarbonisation efforts.
The Union Government is developing a INR 5,000 crore initiative to encourage steel producers to adopt cleaner technologies and reduce carbon emissions, according to Steel Secretary Sandeep Poundrik. Speaking at the 'FT Live Energy Transition Summit India' in the national capital, he said the proposal is being considered as part of a National Mission for Sustainable Steel. Advertisement
The scheme is expected to cover all steel makers in India, with 75 to 80 percent of the funding aimed specifically at secondary players. Its main objective is to lower carbon emissions in steel production by promoting the use of cleaner technologies and alternative materials.
Poundrik highlighted that the plan is significant for India's climate goals, as the country is committed to the Paris Agreement and is working toward achieving net-zero emissions. He added that the scheme is likely to become operational in the coming months.
Explaining the incentive structure, Poundrik said companies will receive benefits based on the extent to which they reduce carbon emissions compared to the previous year. The scheme focuses on improving technology, but the key measure of success will be actual decarbonisation.
The steel sector, being hard to decarbonize, is among the highest contributors to greenhouse gas emissions. Official data indicates that India's domestic steel industry accounts for 12 percent of the country's emissions, with an emission intensity of 2.55 tonnes of CO2 per tonne of crude steel, which is notably higher than the global average of 1.9 tonnes.
Source PTI
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