In 2018, India’s iron and steel sector emitted around 270 million tons of carbon, contributing nearly 9% of the nation’s total greenhouse gas emissions. To achieve carbon neutrality by 2070, the government has started exploring green steel strategies, though progress remains at an early stage. Key policy frameworks for low-carbon steel, including supply, demand, and export promotion measures, are yet to be implemented.
This study reviews policy initiatives from top steel-producing G20 countries, focusing on supply, demand, and export promotion, to identify best practices for decarbonizing India’s steel sector. It prioritizes policy options based on an Analytical Hierarchy Process (AHP) exercise conducted with stakeholders from industry, government, academia, and civil society. The research makes a twofold contribution to the current body of knowledge. Firstly, it identifies potential policy choices that the Indian steel industry can implement to reduce carbon emissions promptly. Secondly, it conducts a policy-prioritization exercise involving various stakeholders to unite diverse perspectives on supply, demand, and export promotion strategies. This exercise helps determine the most optimal transition pathway for the sector. Some of the policy levers that were deemed to be crucial for decarbonizing the Indian steel sector are technological innovation/upgradation, improvement in energy efficiency, and green procurement and labelling. Additionally, access to finance is critical to facilitate the adoption of low-carbon technologies for the production of low-carbon or green steel.
