Decarbonisation requires an immediate switch to low-carbon steel

“Global decarbonisation goals, regulatory pressures, and industrial sustainability objectives are expected to drive India’s demand for green steel to reach 179 million tonnes by 2050,” according to a recent EY-Parthenon study

As the steel industry comes under increased scrutiny for its carbon emissions, green steel made with hydrogen or renewable energy instead of traditional coal-reliant methods is becoming more and more popular worldwide. India’s steel industry, which primarily relies on blast furnaces powered by coal, is a significant source of industrial emissions in the country.

It’s still early days for green steel, but it has a lot of potential in the long run. The study points out some of the main problems, such as high production costs, technology that isn’t fully developed yet, limited access to green hydrogen, and not enough renewable energy infrastructure. Switching to alternatives with low emissions will require a lot of money and new ideas.

EY-Parthenon says that India could become the world leader in sustainable steel production with the right strategies. The report said that “policy incentives for clean energy, carbon pricing mechanisms, and targeted investments in technology and infrastructure are essential.”

The drive for green steel presents an opportunity to strike a balance between environmental responsibility and economic growth, in keeping with India’s obligations under the Paris Agreement. According to experts, if investors, steel producers, and policymakers work together, India could become a centre for the production of low-carbon steel, creating jobs and increasing exports.