India’s Ministry of Steel is preparing to introduce customized emission reduction targets for steel producers, government sources confirmed on Friday, August 29. The initiative aims to balance India’s urgent need to decarbonize the steel industry with the varying capabilities of different steel mills.
The upcoming emission reduction targets will be aligned with the National Steel Policy 2017, and companies that fail to comply will face penalties. However, producers will be allowed to offset their targets using carbon credits, giving them flexibility while ensuring accountability.
Different targets for small and large steel mills
According to sources, smaller steel mills will have lower emission reduction goals, while larger producers will be required to meet stricter targets. The framework is based on the Greenhouse Gas Emission Intensity Target Rules 2025, a draft published by the Ministry of Environment, Forest and Climate Change (MoEFCC) as part of India’s broader Carbon Credit Trading Scheme 2023, designed to build a domestic carbon market.
Compliance with these emission standards will be closely monitored by the Energy Efficiency Bureau (EEB), using a detailed methodology to ensure accurate tracking of steel sector emissions.
This move highlights India’s commitment to reducing its carbon footprint in heavy industries while creating opportunities for growth in the carbon credit market.