In a significant move towards sustainable industrial practices, the Government of India has announced its intent to develop a comprehensive green steel policy. This initiative, aimed at promoting the production and adoption of decarbonized steel, was confirmed by Mr. Sandeep Poundrik, Secretary of the Ministry of Steel. The government is considering using its procurement power to encourage the use of environmentally friendly steel across sectors.

The green steel policy will be a vital component of India’s broader commitment to reducing carbon emissions in heavy industries, which form a significant part of the country’s carbon footprint. The steel industry, being one of the highest emitters of greenhouse gases, is a key target for decarbonization, and the government’s plan signals a robust commitment to this global imperative.

Mr. Poundrik further emphasised the Ministry of Steel’s focus on incentivizing smaller steel producers, encouraging them to transition towards green steel production. “We are exploring various financial and regulatory measures to support smaller players in the market, ensuring that they can adopt technologies and processes that are both economically viable and environmentally sustainable,” he stated.

Government Procurement of Green Steel One of the key elements under consideration is the government’s role as a major consumer of steel. By leveraging government procurement as a tool to boost demand for decarbonized steel, the administration aims to set a standard for industries across the board. Green steel could become integral to infrastructure projects, defences, transportation, and urban development, making it a cornerstone of India’s green growth strategy.

This initiative aligns with India’s broader climate targets under the Paris Agreement, where the nation has pledged to reduce carbon intensity across all sectors of the economy. The steel policy is poised to make a substantial contribution to these goals, especially as the country advances its mission to achieve net-zero emissions by 2070.

Supporting Small Steelmakers

The Ministry of Steel also recognizes the unique challenges faced by small and medium-sized steel producers in transitioning to greener production methods. To address these concerns, the government is planning to introduce tailored incentives that will enable smaller companies to remain competitive while embracing sustainable practices. These incentives may include tax benefits, access to low-interest loans, and subsidies for adopting advanced, energy-efficient technologies. A Strategic Move for India’s Green Future The policy signals India’s ambition to lead in sustainable industrial growth, echoing global trends towards decarbonization. By investing in green steel and supporting smaller producers, the nation not only strengthens its domestic industry but also positions itself as a key player in the global green steel market.