India’s Green Steel Taxonomy
On December 12, 2024, India marked a significant milestone in its journey toward decarbonizing the steel sector by unveiling the Taxonomy of Green Steel.
The Taxonomy of Green Steel is a pioneering effort by India, as it is the first nation to establish a formal definition of “green steel,” amid a global lack of consensus on the concept
Green Steel is defined based on its CO2 equivalent emission intensity, specifically for steel produced with emissions less than 2.2 tonnes of CO2 equivalent per tonne of finished steel (tfs). The greenness percentage is determined by how much lower a plant’s emissions are compared to this threshold.
Key features of the taxonomy include:
Rating System
- Steel is rated based on its emission intensity:
- Five-star green-rated steel: Emission intensity less than 1.6 t-CO2e/tfs.
- Four-star green-rated steel: Emission intensity between 1.6 and 2.0 t-CO2e/tfs.
- Three-star green-rated steel: Emission intensity between 2.0 and 2.2 t-CO2e/tfs.
- Steel with emissions above 2.2 t-CO2e/tfs is not eligible for any green rating.
Review and Scope
- The thresholds for star ratings will be reviewed every three years.
- The emissions considered include Scope 1, Scope 2, and limited Scope 3, which encompasses various processes related to steel production but excludes upstream mining and downstream transportation emissions.
Certification Process
- The National Institute of Secondary Steel Technology (NISST) is designated as the nodal agency responsible for measuring, reporting, and verifying emissions, as well as issuing greenness certificates and star ratings.
- A registration fee of ₹10,000 will be charged per steel plant, with an additional certification fee of ₹1,000 for every 500 tonnes of finished steel certified.
Technical Explanation
- The notification includes a technical appendix that explains how to calculate the greenness percentage based on actual emission intensity compared to the defined threshold.
This framework aims to promote sustainable practices in the steel industry by encouraging lower carbon emissions and providing a clear certification process for producers.
This initiative underscores India’s commitment to reducing emissions in its steel industry as part of its broader climate goals, aligning with the net-zero emission intensity target by 2070.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2083839