Green Steel Mandate for India Projects
green steel mandate, India infrastructure, low-carbon steel, sustainable steel, net-zero emissions, green hydrogen, steel emissions, JSW Steel, Tata Steel, India climate goals.Green steel mandate, India infrastructure, low-carbon steel, sustainable steel, net-zero emissions, green hydrogen, steel emissions, JSW Steel, Tata Steel, India climate goals
India is set to introduce a green steel mandate for government-funded infrastructure projects, aiming to reduce carbon emissions in one of the world’s largest steel-consuming nations. This policy supports India’s climate goals and promotes sustainable industrial practices.
The mandate, under discussion by the steel and finance ministries, will require public projects like highways, railways, and urban infrastructure to use steel produced with low-carbon methods, such as electric arc furnaces powered by renewable energy or hydrogen-based processes. India’s steel sector, producing 144 million tonnes annually, accounts for 12% of the country’s greenhouse gas emissions. Green steel, with emissions below 1.8 tonnes of CO2 per tonne of steel, could significantly lower this footprint compared to traditional coal-based methods, which emit up to 2.5 tonnes.
The policy aligns with India’s target to achieve net-zero emissions by 2070 and reduce carbon intensity by 45% by 2030. The government is exploring incentives like subsidies and tax breaks to offset the 20–30% higher cost of green steel. Major producers like JSW Steel and Tata Steel are investing in low-carbon technologies, with JSW planning a 5-million-tonne green steel plant by 2027. India’s green hydrogen mission, backed by ₹19,744 crore, will support hydrogen-based steelmaking.
Challenges include limited renewable energy capacity and high capital costs for transitioning plants. Critics argue that the mandate could delay projects or increase costs, potentially affecting economic growth. The government plans to phase in the mandate, starting with 10% green steel in FY26, and establish a certification system to ensure compliance. India’s steel exports, valued at ₹1.2 lakh crore in FY24, could also gain competitiveness in markets like the EU, which imposes carbon tariffs.
This mandate positions India as a leader in sustainable steel production. By integrating green practices into public projects, the country is advancing its climate commitments while fostering industrial innovation.
Source: The Economic Times
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