Taxonomy (or classification) was launched by the Union Ministry of Steel.
Key features of Green Steel Taxonomy
- Definition of Green Steel: Steel with CO2 equivalent emission intensity of less than 2.2 tonnes of CO2e per tonne of finished steel.
- Star Rating System (based on greenness): The threshold limit for star ratings will be reviewed every three years. And the current threshold is
- Five-star green-rated steel: Emission intensity lower than 1.6 tonnes.
- Four-star green-rated steel: Emission intensity between 1.6 and 2.0 tonnes.
- Three-star green-rated steel: Emission intensity between 2.0 and 2.2 tonnes.
- Nodal Agency: National Institute of Secondary Steel Technology (NISST) will be nodal agency for measurement, reporting, and verification (MRV) and issuance of greenness certificates (issued annually) and star ratings.
Importance of Green Steel Taxonomy
- Advancing National Mission on Green Steel: A proposed ₹15,000 crore mission under the upcoming ‘Green Steel Policy’ to support decarbonisation of steel industry.
- Boosting Global Competitiveness Helps Indian steel remain competitive amid global policies like the EU's Carbon Border Adjustment Mechanism (CABM). Positions India as a leader in green steel manufacturing.
- Promoting Innovation and Growth: Represent a transformative framework in steel production that will foster innovation, and create a market for low-carbon products in India.
Key Initiatives to decarbonise steel sector in India
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