India's steel industry expansion plans threaten national and global emissions goals, report finds

By Sibi Arasu with AP

Published on 20/05/2025 - 9:59 GMT+2

India’s plans to double alloy accumulation by nan extremity of nan decade could jeopardise its nationalist ambiance goals and a cardinal world target to trim planet-heating state emissions from nan alloy industry, according to a study released Tuesday.

The study by Global Energy Monitor, an organisation that tracks power projects astir nan globe, said efforts to decarbonise steelmaking are gaining traction astir nan world.

However, successful India, nan world's second-largest steel-producing nation, overwhelming reliance connected coal-based technologies presents a large challenge.

“India is now nan bellwether of world alloy decarbonisation,” said Astrid Grigsby-Schulte, task head of nan Global Iron and Steel Tracker astatine GEM and study co-author.

“If nan state does not summation its plans for green alloy production, nan full assemblage will miss an important milestone. So goes India, truthful goes nan world.”

Threats to nationalist and world ambiance goals

Currently, up to 12 per cent of India’s greenhouse state emissions, which spell into nan ambiance and power nan planet, travel from steelmaking. That number could double successful 5 years if alloy is produced successful statement pinch nan government’s plans, according to nan report.

At nan aforesaid time, India wants to nutrient 500 gigawatts of cleanable powerfulness - capable to powerfulness astir 300 cardinal Indian homes - by nan extremity of this decade. The South Asian federation precocious crossed nan milestone of installing 100 gigawatts of star power, astir of which was installed successful nan past 10 years.

By 2070, India besides intends to spell nett zero, that is, it will either destruct each carbon dioxide pollution it emits aliases cancel it retired by utilizing different methods, specified arsenic planting trees that sorb carbon.

Steel accumulation is 1 of nan astir carbon-intensive industries, responsible for astir 9 per cent of world greenhouse state emissions. The International Energy Agency has group a target for 37 per cent of world steelmaking capacity to trust connected lower-emission electrical arc furnaces by 2030.

Current projections by GEM show nan world reaching conscionable 36 per cent — a shortfall mostly owed to India’s coal-heavy pipeline.

Why is India's alloy accumulation truthful carbon-heavy?

India plans to grow its alloy accumulation capacity from 200 cardinal to complete 330 cardinal tonnes per twelvemonth by 2030. According to nan caller data, complete 40 per cent of world capacity successful improvement - astir 352 cardinal tonnes per annum - is successful India, pinch much than half of that utilizing coal-based capacity.

“India is nan only awesome steel-producing federation that has truthful overmuch coal-based capacity successful nan pipeline,” said Henna Khadeeja, a investigation expert pinch GEM who besides worked connected nan report.

India’s alloy assemblage releases astir 2.6 tonnes of c dioxide per tonne of steel, astir 25 per cent much than nan world average. China, nan world’s largest steelmaker, has managed to support its emissions little per tonne by producing much scrap-based alloy and retiring older coal-based plants.

India’s dense dependence connected coal for steelmaking is driven by a operation of factors: low-cost home coal, a comparatively young fleet of blast furnaces that still person 20–25 years of operational life left, and a deficiency of earthy state and alloy scrap.

The country’s scrap recycling ecosystem remains informal, and high-quality robust ore is scarce.

There's still a model to displacement to lower-emission tech

“There is imaginable for India to alteration course,” said Khadeeja of GEM. “Much of nan planned capacity is still connected paper. Only 8 per cent of it has really surgery ground. This intends location is still a model to displacement toward lower-emission technologies.”

The consequences of producing carbon-polluting alloy whitethorn spell beyond ambiance goals. While India’s alloy exports are only a mini stock of its wide production, they could suffer arsenic awesome markets for illustration nan European Union statesman enforcing c separator taxes adjacent year.

“India whitethorn beryllium amended disconnected tolerating immoderate short-term symptom of technological upgrading to make its alloy cleaner for semipermanent competitiveness gain,” said Easwaran Narassimhan of nan New Delhi-based deliberation vessel Sustainable Futures Collaborative.