Experts call for mandates, funding and technology transfer to decarbonise India’s steel sector

India’s steel industry must accelerate decarbonisation to align with the country’s net-zero 2070 goal, but progress hinges on policy certainty, demand creation and technology deployment, experts emphasised at a session on Friday.

The steel sector contributes nearly 12 per cent of India’s total Co2 emissions, with current emission intensity at about 2.5 tonnes per tonne of crude steel, compared to 1.8 tonne in Europe. Globally, just 33 commercial-scale green steel projects have been announced, concentrated in the EU, Australia and China, while India has 15 projects in the pipeline, mostly at pilot stage. Industry estimates suggest a 25–30 per cent reduction in carbon intensity is possible through energy efficiency and renewable power, but deeper cuts of up to 60 per cent will require carbon capture, utilisation and storage (CCUS) and hydrogen-based processes.

Naveen Ahlawat, Head of Green Hydrogen and Green Steel at Jindal Steel and Power (JSPL), said the sharp fall in renewable energy tariffs makes the shift away from thermal power viable. “By adopting renewable energy alone, we can cut carbon intensity by 350–400 kg per tonne of steel. Combining this with waste heat recovery, digitalisation and biomass utilisation can push reductions up to 30 per cent,” he said at the session ‘Green Steel for a Green Economy – India’s Net-Zero Roadmap’ organised by the PHD Chamber of Commerce and Industry.

Yash Kashyap, India Lead at Mission Possible Partnership, stressed that India needs demand-side measures to scale up. “Most projects here are still pilots. To accelerate, we need policy certainty, viability gap funding, technology transfer and green public procurement,” he added.
From the consumer industry side, Nishtha Gupta, Sustainability Head at Suzlon Energy, called renewable power the “easiest lever” for steelmakers to decarbonise. She urged companies to adopt plant-level carbon footprint targets and internal benchmarks to drive change.

Deepak Yadav, Senior Programme Lead at the Council on Energy, Environment and Water (CEEW), identified gaps in CCS readiness and natural gas infrastructure. “Our assessment shows that 55–60 per cent of long-term reductions will only come through CCS. Projects take 20 years to mature, so India must start now,” he said.

Alok Sahay, Secretary General of the Indian Steel Association said mandates and funding support are crucial. “Integrated players have adopted the best available technologies. The missing link is policy intervention whether through mandating green steel in construction and consumer products or providing support to smaller players. Without assured demand, transition will be slow,” he said.

The discussion concluded with a consensus that decarbonising steel requires a joint effort by industry and government, underpinned by technology, demand creation and regulatory certainty. While challenges remain, panelists agreed that India’s early moves in pilot projects and renewable integration mark an important step towards a sustainable future.