NEW DELHI — The Ministry of Environment, Forest and Climate Change released a draft framework on Thursday that sets new carbon‑intensity reduction targets for India’s iron and steel industry. The proposal calls for a 30 percent cut in emissions intensity by 2030 and a 55 percent cut by 2040, measured against the sector’s 2020 baseline. Interim milestones include a 15 percent reduction by 2025.
The draft, part of the government’s broader climate‑action plan, requires steel producers to submit detailed road‑maps outlining how they will achieve the targets. Companies will be expected to adopt energy‑efficiency measures, increase the share of electric arc furnace (EAF) production, and expand the use of low‑carbon fuels such as hydrogen and biomass. The framework also signals a shift toward greater reliance on scrap‑based production, which typically emits less CO₂ than traditional blast‑furnace processes.
Industry bodies have welcomed the clarity of the timeline but warned that the targets could strain profitability unless supported by policy incentives. The Confederation of Indian Industry (CII) noted that “access to affordable green energy and clear carbon‑pricing mechanisms will be critical for compliance.” The Ministry has indicated that it will consider financial support schemes, including credit guarantees and subsidies for low‑carbon technologies, in a forthcoming policy circular.
Environmental groups have praised the draft as a step toward meeting India’s nationally determined contribution (NDC) under the Paris Agreement, which aims to reduce the country’s emissions intensity by 45 percent by 2030. However, they caution that implementation will hinge on robust monitoring and verification systems. “Without transparent reporting and independent audits, the sector could fall short of its pledged cuts,” said a spokesperson for the Centre for Science and Environment.
The draft will be open for public comment until 30 September. After the consultation period, the ministry plans to finalize the regulations and integrate them into the country’s climate‑change legislation.
Analysis: The iron and steel sector accounts for roughly 15 percent of India’s total CO₂ emissions, making it a pivotal focus for the government’s decarbonisation agenda. By setting sector‑specific intensity targets, the Centre aims to align industrial growth with climate commitments while avoiding a blanket emissions cap that could hamper production. The emphasis on EAF technology and green fuels reflects a broader global trend toward circular steelmaking, which could also reduce dependence on imported coking coal. Nonetheless, the success of the framework will depend on the alignment of fiscal incentives, energy policy, and the capacity of domestic firms to adopt new technologies without eroding competitiveness.
Sources: Indian Express – “Emission reduction: Centre issues fresh draft targets for iron and steel sector” (https://indianexpress.com/article/india/emission-reduction-centre-issues-fresh-draft-targets-for-iron-and-steel-sector-10771486/)
Story synopsis gathered from: Indian Express – India — source
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