Why is it in the news?

• The International Energy Agency (IEA) released a policy brief titled ‘Standards for a Net Zero Iron and Steel Sector in India’, focusing on standards for low and near-zero emissions steel, including emissions measurement methodologies and definitions.
• Benefits of these standards include increased acceptance of emission-related measures by producers, simplified processes, minimized trade barriers, and improved emissions understanding across various stakeholders.

Initiatives to Standardize the Steel Sector

India

• Implementation of the Steel Scrap Recycling Policy, 2019.
• Perform, Achieve and Trade scheme under the National Mission for Enhanced Energy Efficiency incentivizes the steel industry to reduce energy consumption.
• Ministry of Steel formed 14 Task Forces to support the development of its “Roadmap for Green Steel”.

Global Initiatives

• COP26 launched the Steel Breakthrough under the Breakthrough Agenda, focusing on definitions and emissions measurement methodologies.
• Steel Standard Principles were established at COP 28 in 2023 for the development of low/near-zero emissions steel definitions and measurement methodologies.

Measures Required for Standardizing the Steel Sector

• Setting clear timelines for emissions reduction, measurement methodologies, and defining near-zero steel.
• Creating markets for low-emissions materials and products and developing novel emissions reduction technologies.
• Developing policies to support commercial-scale low emissions production and mobilizing finance and investment.