India already has a significant and growing supply of certified green steel, with the main challenge increasingly shifting from availability to creating sufficient demand through public and private procurement, according to an analysis by the Council on Energy, Environment and Water (CEEW).
As of March 31, 2026, around 90 steel producers had received ratings under India's green steel taxonomy, covering 12.40 million mt of certified production. Of this total, approximately 9.0 million mt across 66 producers was rated five-star, 1.33 million mt across 13 producers was rated four-star and around 2.08 million mt across 11 products was rated three-star.
According to CEEW, thermo-mechanically treated bars account for the largest share of certified green steel production at more than 10.02 million mt. The remaining 2.39 million mt includes products such as hot rolled coils, pipes and wire rods.
Green steel taxonomy and CCTS cover different producers
The report highlighted differences between India's Green Steel Taxonomy and the Carbon Credit Trading Scheme (CCTS). Green steel certification largely covers downstream finished steel producers, while the CCTS focuses mainly on upstream primary producers such as integrated steel plants and sponge iron facilities. Of the total 12.40 million mt of certified green steel, only eight plants representing 1.69 million mt are also covered by the CCTS framework.
CEEW considers the two systems complementary. The certification framework can support near-term green steel supply from downstream producers, while the CCTS is expected to drive longer-term decarbonization at primary steelmaking facilities. The weighted-average emissions intensity of currently certified green steel stands at around 1.42 mt of CO₂ per mt of finished steel, below the national green steel threshold of 2.2 mt.
Nearly 40 million mt could meet green steel thresholds
Based on draft CCTS emissions-intensity targets, CEEW estimates that nearly 40 million mt of Indian steel production could meet green steel thresholds by 2026-27 if obligated entities achieve their targets without relying on carbon credit purchases. Around 24 million mt of this production could potentially qualify for a five-star rating.
CEEW also stated that cost may be less of a barrier than commonly assumed. Certified green steel is already being sold at competitive prices in many cases, while energy-efficiency measures and renewable electricity can reduce steel emissions intensity by approximately 8-15 percent without necessarily increasing production costs. Even where a price premium exists, the report expects its impact on overall infrastructure project costs to remain limited.
CEEW highlights quality considerations
Quality remains a more complex issue, particularly as a significant share of certified green steel is produced through scrap-based induction furnace routes. According to CEEW, these production routes may face quality limitations for certain applications compared with blast furnace or gas-based direct reduced iron production. The report therefore recommends aligning green steel procurement with end-use quality requirements while supporting investment in improved scrap processing and secondary steelmaking technologies.
CEEW calls for stronger green steel procurement
CEEW noted that India has already established a green steel taxonomy, measurement, reporting and verification systems, and certification through the National Institute of Secondary Steel Technology. However, demand-side policy has progressed more slowly.
The report recommends that public procurement authorities prioritize certified green steel when its prices are comparable with conventional material. It also calls for disclosure of the amount, percentage and star rating of green steel used in publicly funded infrastructure projects.
Other recommendations include introducing product labels linked to green steel certification, coordinating procurement policies between central and state governments, developing emissions inventories for infrastructure projects and strengthening scrap availability and processing capacity.
Maharashtra leads certified green steel production
At the state level, Maharashtra currently leads certified green steel production with 4.29 million mt across 26 plants. Tamil Nadu, Punjab, Gujarat and West Bengal each contribute around one million mt. Based on draft CCTS targets, Maharashtra, Gujarat and Odisha could account for approximately 73 percent of India's green steel availability by fiscal year 2026-27.
CEEW concluded that India does not need to wait for major technological breakthroughs or large new subsidy programs before expanding green steel procurement, as supply is already emerging at scale within the country's existing regulatory framework.
