Decarbonisation of the Steel Sector
Context:
The Ministry of Steel is considering funding options to support decarbonisation in the steel sector due to the growing environmental concerns.
Relevance:
GS-02 GS-03 (Government Policies & Interventions, Conservation)
What is Decarbonisation of the Steel Sector?
- Decarbonisation is the process that involves reducing carbon emissions in steel production to create ‘green steel’ that aligns with the global climate goals.
- India being the second-largest crude steel producer aims to increase per capita consumption from 97.7 kg to 160 kg by 2030.
- Meanwhile, India is contributing only 4% to global GHG emissions. It is committed to decarbonising its industrial sectors, including steel, to meet its 2070 net-zero target.
How can India proceed Decarbonization?
- With an estimated requirement of USD 300 billion, the Ministry in order to finance the decarbonisation goal is considering PLI schemes. India’s Green steel policy is one such move that links several PLI schemes.
- Also, it is advised to substituting coal with natural gas in blast furnaces to reduce emissions.
- Import Protection: The government is mulling over import duties and protection measures to shield the domestic steel industry from foreign competition, balancing import-export dynamics.
- Steps can be taken to reduce carbon energy sources and instead use hydrogen, coal gasification, or electricity instead of coal-fired plants.
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