India’s ministry of steel has awarded green steel certificates to 25 domestic steel producers, making them eligible under the government’s upcoming fiscal incentive scheme for low-carbon steel, a senior government official said on Thursday, November 13.
According to the official, the ministry received 60 applications, of which 25 mills were approved, while the certificates will remain valid for one year. The move is expected to help Indian metal exporters meet the carbon-intensity thresholds required under the European Union’s Carbon Border Adjustment Mechanism (CBAM), thereby reducing or avoiding potential carbon taxes on steel shipments to the EU.
India’s green steel taxonomy and incentive framework
Earlier this year, the ministry introduced a green steel taxonomy, classifying steel based on carbon dioxide emissions per metric ton of steel produced.
- Mills emitting up to 1.6 mt of CO₂/mt of steel are rated 5-star (highest).
- Emissions between 1.6–2.0 mt/mt are rated 4-star.
- Mills emitting 2.0–2.2 mt/mt receive a 3-star rating.
The issuance of green certificates comes as the government prepares a $564 million incentive corpus under a proposed Production-Linked Incentive (PLI) scheme aimed at rewarding producers that adopt green steel technologies, including renewable-powered electric arc furnaces. The scheme will provide incentives for the use of renewable energy and include procurement mandates for government agencies to prioritise green steel.