Team Siliconindia

• Govt to launch Rs 5,000 crore National Mission for Sustainable Steel, rewarding firms for year-on-year emission cuts
• 75-80% of funds to support secondary steelmakers, key contributors to India’s carbon footprint
• Steel sector emits 12% of India’s GHGs; mission aligns with Paris Agreement & net-zero ambitions

The government is set to roll out a Rs 5,000 crore plan with a focus on encouraging the use of clean steel production technologies to lower the intensity of carbon emissions, Steel Secretary Sandeep Poundrik said. In an interview to PTI during the 'FT Live Energy Transition Summit India' in New Delhi, Poundrik mentioned that the proposal for setting up a National Mission for Sustainable Steel is awaiting consideration and is expected to go operational in the near future.

The program is aimed at encompassing all steel manufacturers in the nation, where most of the money, between 75 to 80 percent, is spent on secondary players. They are large contributors to India's steel sector and are considered key in reducing the sector's overall carbon footprint. The scheme will reward companies according to how well they perform in cutting their emissions over the past year.

"In essence, this scheme is that you'll receive incentives based on how you cut the emission. If you cut your carbon emission as compared to your previous year… What we are saying is to enhance the technologies, but the output parameter which we are gauging is decarbonisation", Poundrik described.

Also Read: Delhi HC Revives Passing Off Claims Against Top Indian Shoe Companies

The steel sector is commonly known to be among the most challenging sectors to be decarbonized because it has a heavy dependence on coal and other carbon-emitting processes. India's indigenous steel sector contributes to about 12 percent of the nation's entire greenhouse gas emissions with an emission intensity of 2.55 tonnes of CO2 for each tonne of crude steel. This is significantly above the world average of 1.9 tonnes, highlighting the need for technological improvement and sustainable operations in the industry.

Through promoting the adoption of cleaner technology and alternative raw materials, the government aims to drive the transition towards more environmentally friendly steel production. This step is in accordance with India's larger climate goals under the Paris Agreement and its goal of reducing net emissions to zero in the long term.

The scheme's emphasis on incentivizing quantifiable reductions in emissions instead of dictating certain technologies will be meant to provide steelmakers with freedom in implementing the most appropriate solutions for their businesses. Poundrik highlighted that the mission is effectively all about incentivizing decarbonisation outcomes, echoing the government's ambition to encourage real progress in one of the UK's largest and most polluting industries.