Govt defines green steel, sets emission standard to give star rating on products

The government on Thursday came out with the definition of green steel and asked the industry to take measures to bring down carbon emissions below the level of 2.2 tonnes per tonne of finished products.

Union Steel Minister H D Kumaraswamy also released a 'taxonomy on green steel' with parameters for giving star ratings on products based on the amount of carbon dioxide (CO2) emitted during the production process.

The steel industry has been the backbone of India's industrial growth and it is imperative that this vital sector undergoes a transformative shift towards sustainability as the country moves ahead, the minister said, adding that adoption of green practices is not an option but a necessity for the larger humanity.

The steel industry accounts for around 7% of global CO2 emissions and India, the second largest producer of steel, has both the responsibility and the opportunity to lead the charge in reducing emissions while maintaining growth, Kumaraswamy said.

The new framework will guide efforts to decarbonize steel production and encourage green practices across the value chain, the minister said.

In his address, Steel Secretary Sandeep Poundrik said there is no universally accepted definition of green steel. There are various methodologies which are being used by different institutions.

"Based on the recommendations of a task force as well as the examination in the ministry, today we have released what we will consider to be green steel in the Indian context," he said.

As per the ministry's taxonomy, green steel shall be defined in terms of the percentage greenness of steel, which is produced from the steel plant with a CO2 equivalent emission intensity of less than 2.2 tonnes of CO2 per tonne of finished steel.

"So, anything below 2.2 carbon (CO2 emission)...will be considered to be green steel. And we have done this so that not only the industry, the ministry, the stakeholders, but also the consumers understand that they are using green steel," the secretary said.

If 1.6 tonnes of CO2 or less is emitted in the production of 1 tonne of finished steel, it will be considered 5-star green-rated steel.

On emissions in the range of 1.6 to 2 tonnes, the product will be given a 4-star rating, while those with 2 to 2.2 tonnes of emission level will be rated 3-star.

Green steel production would require the usage of alternate raw materials like scrap and renewable energy to run various operations.

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.