The Ministry of Steel on December 12, 2024, issued a notification regarding the Taxonomy for Green Steel in India.
Green Steel is defined as steel produced with CO₂ equivalent (CO₂e) emission intensity below 2.2 tonnes per tonne of finished steel (TFS). The greenness of steel is expressed as a percentage, indicating the extent to which emission intensity is reduced below this threshold.
The green steel produced by plants is rated based on its emission intensity:
•Five-star Green Steel: Emission intensity less than 1.6 t-CO₂e/tfs.
•Four-star Green Steel: Emission intensity between 1.6 and 2.0 t-CO₂e/tfs.
•Three-star Green Steel: Emission intensity between 2.0 and 2.2 t-CO₂e/tfs.
•Steel with emissions exceeding 2.2 t-CO₂e/tfs is not eligible for a green rating.
The emissions considered for rating include Scope 1: Direct emissions from plant operations and Scope 2: Indirect emissions from energy use, also Limited Scope 3: Emissions related to agglomeration, beneficiation, and embodied emissions in purchased raw materials and intermediary products.
Exclusions include upstream mining, downstream emissions, and transportation-related emissions.
The National Institute of Secondary Steel Technology (NISST) is designated as the nodal agency for measurement, reporting, verification (MRV), and certification of green steel. Certificates will include plant name, embodied emissions, greenness percentage, star rating, and certified quantity. The cost for registration is ₹10,000 per plant, and certification costs ₹1,000 per 500 tonnes of finished steel. The threshold for star ratings will be reviewed every three years to ensure alignment with technological and environmental advancements. Steel plants can register and obtain certificates annually or at shorter intervals if required.
Compliance will follow the MRV procedures outlined in the Carbon Credit Trading Scheme (CCTS), as published by the Bureau of Energy Efficiency (BEE).
The NISST will maintain a registry of certified green-rated steel to promote transparency and track the progress of sustainable steel production across the country.
This taxonomy marks a significant step towards reducing the environmental impact of steel production and fostering a greener, more sustainable industry.
[Notification No. G.S.R 763(E)]
