India’s new greenhouse gas emission intensity targets for the iron and steel sector mark a significant step towards industrial decarbonisation. The facility-specific approach recognises technological diversity, while robust monitoring, financial support and stronger compliance will be crucial for success

There are compelling reasons why the iron and steel sector has become a critical experimental ground for India’s compliance carbon market. The steel sector constitutes a critical sector of importance to the economy and positions India as the second-largest crude steel producer globally. Importantly, the steel sector is under policy scrutiny due to its heavy dependence on coal-based production routes and the energy-intensive nature of ironmaking. High carbon intensity has put the sector under stress in the emerging context of global environmental trade measures such as the Carbon Border Adjustment Mechanism (CBAM). Given the strategic importance of India’s steel exports, decarbonisation of the steel industry is no longer a policy choice but an implementation necessity for its business viability. The challenge, therefore, is not whether India should produce more steel, but how it can produce more steel with progressively lower emissions.

GEI targets for the iron and steel industry under CCTS

In this context, the recent notification of the emission intensity targets for the iron and steel industry under India’s Carbon Credit Trading Scheme (CCTS) merits a deeper examination of its emissions implications for such a critical sector. Greenhouse gas emission intensity (GEI) targets, built on the mechanism of emissions per tonne of equivalent product, are very much in alignment with the developmental aspirations of the country. This strategic approach is designed considering the economic reality of........

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