India Becomes First Nation to Define ‘Green Steel’ Standards

India has recently become the first nation to officially define “green steel,” which includes steel produced with carbon dioxide emissions of less than 2.2 tonnes per tonne of finished steel. The government has also introduced a star-rating system to evaluate green steel based on its emissions.

Definition of Green Steel

Green steel is defined by its carbon emissions relative to the established threshold. Steel must emit less than 2.2 tonnes of CO2 per tonne to be considered green. The rating system categorizes steel by its emissions reductions, with five stars awarded to steel emitting less than 1.6 tonnes.

Star-Rating System

The star-rating system grades steel as follows:

• Five stars for emissions below 1.6 tonnes of CO2.
• Four stars for emissions between 1.6 and 2.0 tonnes.
• Three stars for emissions between 2.0 and 2.2 tonnes.
• Steel exceeding 2.2 tonnes will not qualify as green steel.

Currently, India’s steel industry averages around 2.6 tonnes of CO2 emissions per tonne.

Government Initiatives

The green steel initiative aims to position India as a global leader in sustainable steel production. The Ministry of Steel is launching a ₹15,000 crore Green Steel Mission to facilitate this transition. This mission will include public procurement policies and financial support for companies adopting cleaner technologies.

The government proposes that 37% of public procurement be allocated to five-star rated green steel. An additional 30% will be directed towards other green steel options. This strategy aims to incentivise the production and use of environmentally friendly steel.

Funding and Investment Needs

The steel industry requires a capital investment of approximately ₹260,000-270,000 crore to transition to greener methods. These methods may involve using hydrogen and biochar instead of traditional coal-based processes. The Ministry is also seeking support from international agencies like the World Bank.

In response to rising imports, India is considering imposing safeguard duties on steel imports, especially from Asian countries. This includes a potential 20-25% duty for two years to protect the domestic steel industry from cheap imports, particularly from China.

GKToday Facts for Exams:

1. Green Steel: Green steel is defined by carbon emissions below 2.2 tonnes per tonne of finished steel. India is the first country to officially define this term.
2. Star-Rating System: The star-rating system grades green steel based on emissions. Five stars indicate emissions below 1.6 tonnes, promoting environmentally friendly production practices in the steel industry.
3. Green Steel Mission: The Green Steel Mission involves a ₹15,000 crore investment. It aims to facilitate India’s transition to sustainable steel production through public procurement and financial support.
4. Safeguard Duties: India considers imposing safeguard duties on steel imports. This aims to protect the domestic industry from cheap imports, particularly from countries like China and Vietnam.

Month: Current Affairs - December, 2024

Category: Environment Current Affairs