Transitioning to green steel, Pg7

Key Highlights:

• India aims for net-zero emissions by 2070, with green steel production being crucial.
• The Ministry of Steel formed 14 task forces to map decarbonization in the steel sector.
• A Green Steel Taxonomy with a 3-, 4-, and 5-star rating system has been introduced to rank steel by emission intensity.
• Public procurement of green steel could increase overall infrastructure project costs by approximately 1.1%.

Detailed Insights:

• Transitioning to green steel helps India bypass potential EU Carbon Border Adjustment Mechanism tariffs and volatile coking coal import prices.
• Japan's Green Purchasing framework and California's Buy Clean model offer templates for aligning policy with market realities in green procurement.
• Embedding Green Star ratings into product verification using the existing Made in India QR code infrastructure can help procurement officers confirm carbon credentials.
• Procurement frameworks should shift focus from the lowest upfront price to a broader definition of value for money, recognizing sustainability and national economic interest.
• Aligning Production Linked Incentives and green hydrogen missions with procurement tenders ensures private incentives are harmonized with the public good.
• Launching focused pilots through centralized purchasers like the Indian Railways can create a living lab for green steel adoption.

Key Concepts Involved:

• Green Steel: Steel produced with significantly lower carbon emissions than traditional methods.
• Decarbonization: The process of reducing carbon emissions from various sectors.
• Carbon Border Adjustment Mechanism (CBAM): A carbon tariff on imports from countries with less stringent climate policies.