India is the first country to define “green steel” with a carbon emissions threshold of 2.2 tonnes per tonne of finished steel, introducing a star-rating system to encourage sustainable practices in the steel sector. The government is pushing for a public procurement policy and investing in a Green Steel Mission to promote decarbonization.

India has become the first nation to define “green steel,” setting an emission threshold of 2.2 tonnes of CO2 per tonne of finished steel. The government has introduced a “star-rating” system to encourage steel plants to reduce carbon emissions, with five-star-rated steel products emitting less than 1.6 tonnes of CO2 per tonne of finished steel.

Union Minister of Steel, H.D. Kumaraswamy, emphasized that the country’s steel sector, responsible for about 7% of global CO2 emissions, must embrace sustainable practices for the benefit of the environment. “The green steel taxonomy will help set a benchmark for adopting global best practices and help India emerge as a global leader in green steel production,” Kumaraswamy said.

As part of the new initiative, the steel ministry has introduced a star rating system based on the emission intensity of steel production. Steel with emissions of less than 1.6 tonnes of CO2 per tonne of finished steel will receive a five-star rating, while a four-star rating will apply to steel with emissions between 1.6 and 2.0 tonnes. Steel with emissions between 2.0 and 2.2 tonnes will be rated three stars. Steel with emissions exceeding 2.2 tonnes will not be classified as green steel.

The government is also pushing for a public procurement policy, suggesting at least 37% procurement of five-star-rated green steel. “Public procurement will vary depending on the star rating of the steel,” said a senior official. A ₹15,000 crore Green Steel Mission is also underway, aimed at supporting the switch to low-carbon steel production methods, such as the use of hydrogen and biochar.

With the new framework, India aims to lead the global push for decarbonizing steel production, ensuring that the steel industry contributes to both economic growth and sustainability. “Adoption of green practices is not an option but a necessity for the larger humanity,” Kumaraswamy concluded.