On December 24, 2024, the Ministry of Steel introduced the Taxonomy for Green Steel in India, a new framework aimed at reducing carbon emissions in the steel industry. This initiative is part of India’s broader strategy to combat climate change and promote sustainable industrial practices.
Key Highlights of the Green Steel Taxonomy:
Green Steel Definition:
- Green steel is defined as steel produced with an emission intensity lower than 2.2 tonnes of CO2e per tonne of finished steel (tfs).
- A greenness percentage is calculated based on how much a plant’s emissions are below this threshold.
Star Rating System:
- Steel will be rated on a star system:
- Five-star: Emission intensity < 1.6 t-CO2e/tfs.
- Four-star: Emission intensity between 1.6 and 2.0 t-CO2e/tfs.
- Three-star: Emission intensity between 2.0 and 2.2 t-CO2e/tfs.
- Non-green: Steel with emissions > 2.2 t-CO2e/tfs will not be eligible for certification.
Emissions Scope:
- The emissions considered include Scope 1, Scope 2, and limited Scope 3 up to the finished steel production stage. Scope 3 emissions are related to processes like agglomeration and beneficiation but exclude upstream mining, transportation, and downstream emissions.
Certification Process and Fees:
- NISST (National Institute of Secondary Steel Technology) will manage the measurement, reporting, and certification (MRV) of emissions.
- Registration Fee: Rs. 10,000 per plant.
- Certification Fee: Rs. 1,000 per 500 tonnes of certified finished steel.
- Certification is annual, but plants can opt for more frequent MRV if needed.
Review and Updates:
- The star-rating thresholds will be reviewed every three years to stay aligned with industry developments and global standards.
- The methodology for emissions MRV will follow the guidelines set by the Bureau of Energy Efficiency (BEE).
A steel plant with an emission intensity (Ep) lower than the threshold emission intensity (Et) can qualify for a greenness certification as outlined below:
1) If Ep = E0, then the plant can be considered to be producing 100% green steel.
2) If Ep>Et, the plant is not producing steel with any greenness.
3) However, if E0<Ep<Et, then the greenness percentage (G%) of plant can be defined as:
