Recently, the Union Minister of Steel unveiled the Taxonomy of Green Steel for India during an event held at Vigyan Bhavan, on 12th December 2024.
- India becomes the first country globally to define and implement a taxonomy for green steel, setting a benchmark for others to follow.
- This initiative not only promotes sustainable practices in the steel industry but also aligns with India’s broader environmental and climate goals.
- India’s release of the Taxonomy of Green Steel sets a pioneering framework for defining and rating “green steel” based on its environmental impact.
Definition of Green Steel:
- Green Steel is defined by its CO2 equivalent emission intensity, which must be less than 2.2 tonnes of CO2e per tonne of finished steel (tfs).
- The degree of “greenness” is expressed as a percentage, representing how much the steel’s emission intensity is below the threshold.
Star Ratings for Green Steel:
- Five-star green-rated steel: Emission intensity < 1.6 t-CO2e/tfs.
- Four-star green-rated steel: Emission intensity between 1.6 and 2.0 t-CO2e/tfs.
- Three-star green-rated steel: Emission intensity between 2.0 and 2.2 t-CO2e/tfs.
- Steel with emission intensity > 2.2 t-CO2e/tfs is not eligible for a green rating.
Key Features:
- The thresholds for star ratings will be reviewed every three years, ensuring alignment with technological advancements and global standards.
- The National Institute of Secondary Steel Technology (NISST) is the designated nodal agency responsible for:
- Measurement, Reporting, and Verification (MRV) of emissions.
- Issuing greenness certificates and star ratings.
