India's steel industry needs approximately $283 billion in investments to decarbonise its existing plants, according to a report from the Ministry of Steel. The plan aims to increase the integration of renewable energy sources in the sector from 7.2% in 2021/2022 to 43% by the fiscal year 2029/2030. Additionally, the government may reduce taxes on green steel production and mandate the use of greener raw materials for luxury car manufacturers.
The transition involves implementing advanced technologies at small steel mills, which is estimated to cost over $13 billion, while the overall technological shift, including direct reduction of iron and carbon capture technologies, could require another $150 billion. The comprehensive strategy also includes establishing Energy Efficiency Revolving Funds and defining parameters for green steel.With the steel sector responsible for 12% of India's greenhouse gas emissions, significant action is necessary to meet climate goals and ensure sustainable growth in the industry.
