Context:

In a step toward decarbonising the steel sector in alignment with the net-zero emission intensity target by 2070, the Union Minister of Steel & Heavy Industries recently unveiled the Taxonomy of Green Steel for India during an event held at Vigyan Bhavan.

More on the News

• India is the first nation to release the Taxonomy of Green Steel.
• The release of the Taxonomy of Green Steel marks a crucial step in advancing the National Mission on Green Steel.
• Stakeholder consultation on the draft National Mission on Green Steel (NMGS) and draft Green Steel Public Procurement Policy (GSPPP) was also conducted during the event. 

Salient Features of Green Steel Taxonomy

“Green Steel” shall be defined in terms of the percentage greenness of the steel produced from the steel plant with CO2 equivalent emission intensity of fewer than 2.2 tonnes of CO2e per tonne of finished steel (tfs). 

The greenness of the steel shall be expressed as a percentage, based on how much the steel plant’s emission intensity is lower compared to the 2.2 t-CO2e/tfs threshold.

Based on the greenness, the Green Steel shall be rated as follows: 

• Five-star Green Steel: Steel with Emission intensity lower than 1.6 t-CO2e/tfs.
• Four-star Green Steel: Emission intensity is between 1.6 and 2.0 t-CO2e/tfs.
• Three-star Green Steel: Emission intensity is between 2.0 and 2.2 t-CO2e/tfs.

Steel with emissions above 2.2 t-CO2e/tfs will not be eligible for green rating. 

The thresholds for the star ratings will be reviewed every three years.

Emissions considered will include Scope 1, Scope 2, and limited Scope 3 (up to finished steel production).

Scope 3 emissions cover:

• Agglomeration processes (sintering, pellet making, coke making)
• Beneficiation
• Embodied emissions in raw materials and intermediary products.

Scope 3 does not include:

• Upstream mining
• Downstream emissions
• Transportation emissions (both within and outside the plant).

The National Institute of Secondary Steel Technology (NISST) will oversee the Measurement, Reporting, and Verification (MRV) process and issue greenness certificates and star ratings.

• Certificates will be issued annually (for the financial year).
• If steel plants request more frequent MRV, certificates can be issued more than once a year.