Decarbonizing Steel: What India’s Green Rating Means for You?

The steel industry plays a crucial role in driving India’s economic growth. At the same time, it is also one of the most carbon-intensive industries, contributing approximately 7–9% of global CO₂ emissions. Given its high carbon footprint, transitioning the steel industry to carbon neutrality is important for achieving the national climate goals and a sustainable future.

Notably, as a part of “Long-Term Low-Carbon Development Strategy” (LT-LEDS), India has set an ambitious target to reduce steel sector emissions to 2.2 tCO₂ per tonne by 2030. Aligned with this goal, the Ministry of Steel has introduced the Green Steel Taxonomy, which assigns green ratings for categorizing low-emissions steel. It aims to minimize CO₂ emissions compared to traditional steel-making methods.

The green ratings are issued based on the emissions intensity measured as Tonnes of CO₂ equivalent (tCO₂e)** **per tonne of finished steel (tfs) production. The eligibility criteria for green steel ratings are given below. Notably, to be eligible for green rating, the steel industry must have emissions lower than 2.2 tCO₂e/tfs.

Eligibility Criteria for Green Steel Ratings

5 Star Green Rating < 1.6 tCO₂e/tfs 4 Star Green Rating 1.6–2.0 tCO₂e/tfs 3 Star Green Rating 2.0–2.2 tCO₂e/tfs Not Eligible for Green Rating > 2.2 tCO₂e/tfs

(* It covers** **Scope 1 (direct emissions), Scope 2 (indirect emissions from energy use), and Scope 3 (excluding mining & transportation)).

Why It Matters for Your Business

Although the certification is not mandatory, it can help to achieve the following benefits.

• Market Advantage
• Improved process efficiency
• Alignment with other policies/ regulations such as National Green Steel Mission, Carbon Credit Trading Scheme (CCTS) & Carbon Border Adjustment Mechanism (CBAM)

We would be happy to assist you in achieving your Green Steel Rating and, going a step further, guide you in developing effective carbon reduction plans. Please contact us if you have any queries.

_Social Lab Environmental Solutions is a Sustainability Consulting Providing most reliable and affordable CBAM, BRSR & Carbon Neutrality compliance solutions. To know more about us, please visit our website _Social Lab_ & follow us on _Linkedin for latest sectorial updates.