The Ministry of Steel has introduced a Taxonomy of Green Steel, aiming to standardize the definition and assessment of low-emission steel in India. The taxonomy was launched during an event at Vigyan Bhavan, New Delhi, on December 12, 2024, with officials from various ministries, industry representatives, and international delegates in attendance.
The taxonomy defines green steel based on carbon emission intensity, setting a threshold of 2.2 tonnes of CO₂ equivalent per tonne of finished steel (tfs). Steel produced with lower emission intensities will be rated on a star-based system:
- Five-star green-rated steel: Emission intensity below 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 exceeding the 2.2 t-CO₂e/tfs threshold will not qualify for a green rating.
The star-rating criteria will undergo a review every three years. The scope of emissions considered includes Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and certain Scope 3 emissions (e.g., emissions from raw materials and intermediary products). Upstream mining, downstream emissions, and transportation emissions outside steel plants are excluded.
The National Institute of Secondary Steel Technology (NISST) will act as the nodal agency for verifying emissions, issuing certificates, and assigning star ratings. Certification will occur annually, with provisions for more frequent reviews upon request.
The launch event also included stakeholder consultations on the draft National Mission on Green Steel (NMGS) and the draft Green Steel Public Procurement Policy (GSPPP). Inputs gathered from the discussions will be incorporated into finalizing these initiatives.
The Ministry of Steel has set a target to reduce carbon emission intensity in steel production to 2.2 t-CO₂e/tfs by 2030, aligning with India’s broader goal of achieving net-zero emissions by 2070. The taxonomy is expected to encourage innovation, create a market for low-carbon steel products, and foster sustainable growth in the industry.