Draft emission cut targets issued for iron, steel sector, Pg8

Key Highlights:

• The Ministry of Environment, Forest and Climate Change (MoEFCC) has issued a draft notification for greenhouse gas emission intensity targets for the iron and steel sector.
• The draft, made public on July 2, 2026, aims to integrate 255 industrial units, including major steel producers, into India’s Carbon Credit Trading System (CCTS).
• Targets are set for the compliance year 2026-27, with 2023-24 designated as the baseline year for product output and emission intensity.
• This revised draft follows an earlier one from June 23, 2025, and comes after final targets for other sectors were notified in January 2026.

Iron and steel.png

Detailed Insights:

• The draft notification provides a 60-day period for stakeholders to submit objections and suggestions.
• Greenhouse Gas Emission Intensity (GEI) quantifies the amount of greenhouse gases emitted per unit of product output.
• Emission targets are defined in tonnes of carbon dioxide equivalent (tCO2e), which measures the impact of all greenhouse gases based on their warming potential.
• The CCTS, launched in 2023, is a market-based mechanism designed to incentivize emission reductions and help achieve India’s climate action goals.
• India has revised its Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement.
• Under its NDCs, India is committed to reducing the emission intensity of its Gross Domestic Product by 47% by 2030 compared to 2005 levels.
• The Centre has already finalized emission reduction targets for eight other high-emission sectors, including cement, aluminium, and petroleum refinery.

Key Concepts Involved:

• Carbon Credit Trading System (CCTS): A market-based mechanism in India designed to incentivize and facilitate the reduction of greenhouse gas emissions.
• Greenhouse Gas Emission Intensity (GEI): A metric that measures the amount of greenhouse gases emitted per unit of economic output or product.
• Nationally Determined Contributions (NDCs): Climate action plans submitted by countries under the Paris Agreement, outlining their efforts to reduce national emissions.
• tCO2e (tonnes of carbon dioxide equivalent): A standard unit for measuring the global warming potential of different greenhouse gases relative to carbon dioxide.