World’s first Green Steel Taxonomy

Current Context : Recently, India launched the world’s first Green Steel Taxonomy, led by the Union Ministry of Steel.

About Green Steel:

• Green Steel is defined as steel with CO2 equivalent (CO2e) emission intensity less than 2.2 tonnes per tonne of finished steel.

StaR Rating System:

• Five-star: Emission intensity < 1.6 tonnes.
• Four-star: Emission intensity between 1.6–2.0 tonnes.
• Three-star: Emission intensity between 2.0–2.2 tonnes.
• Star ratings will be reviewed every three years.

Nodal Agency: The National Institute of Secondary Steel Technology (NISST) will handle measurement, reporting, verification (MRV), issuance of annual certificates, and star ratings.

Importance:

• Supports Decarbonisation: Aligns with India’s proposed ₹15,000 crore National Mission on Green Steel under the upcoming Green Steel Policy.
• Global Competitiveness: Keeps Indian steel competitive under global policies like the EU Carbon Border Adjustment Mechanism (CABM).
• Promotes Innovation: Creates a framework for low-carbon products, fostering growth in sustainable steel production.

Key Initiatives to Decarbonise Steel:

• National Mission for Enhanced Energy Efficiency (NMEEE): Part of the National Action Plan for Climate Change (NAPCC).
• Perform Achieve & Trade (PAT) Scheme: A market mechanism under NMEEE using Energy Saving Certificates (ESCerts).
• Other policies: Green Hydrogen Energy Mission, National Solar Mission, and Steel Scrap Recycling Policy, 2019.