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.
| About the Steel Sector in India
· India is the second-largest steel-producing country, accounting for 7% of total crude steel production. · Steel production heavily relies on coal, which is used as a reducing agent to extract iron from iron ore and provide the carbon content needed in steel. · India’s steel industry is the largest coal consumer and is responsible for 7–9% of global greenhouse gas emissions. · The steel industry in India accounts for 12% of carbon dioxide emissions and is expected to double by 2030 due to the government’s infrastructure push.
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