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India's Green Steel Taxonomy Defines Emission Intensity Below 2.2 t-CO2/tfs, Targets 2.2 t-CO2/tcs by 2029-30

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
11 Feb 2026
~2 min
Source: Indian Express
Key Data:202690%2.2 tonnes of CO₂ per tonne of finished steel75%2 tonnes of carbon dioxide7-9%
Bodies:European UnionMinistry of Steel
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What This Article Covers

1.The EU's CBAM, effective Jan 2026, imposes carbon tariffs, directly threatening India's steel exports which rely on carbon-intensive blast furnace technology.

2.India released its Green Steel Taxonomy in Dec 2024, defining green steel as having emission intensity <2.2 t-CO2e/tfs and setting a roadmap to reduce intensity from 2.65 to 2.20 by 2029-30.

3.The transition faces major constraints: high cost of technologies like hydrogen-DRI, underdeveloped scrap recycling ecosystem (22% usage vs global 33%), and need for massive renewable energy for green hydrogen.

The Big Picture
Prelims · HighMains · High

The EU's Carbon Border Adjustment Mechanism (CBAM) imposes a carbon tariff on steel imports, making 90% of India's CBAM-exposed exports vulnerable. This makes the shift to low-carbon 'green steel' an urgent economic and environmental necessity to protect trade and meet India's 2070 net-zero target. India's new Green Steel Taxonomy and roadmap aim to reduce emission intensity, but face challenges like high costs and scrap supply constraints.

Exam Lens

Quick Exam Facts From News

CBAM Effective DateJanuary 2026
India's Steel Exports to EUTwo-thirds of total exports
India's Steel Sector Emissions10-12% of national total
Green Steel Emission Threshold<2.2 tonnes CO2e/tonne steel
Current Scrap Usage in India22% (Global: 33%)
Target Scrap Share by 204750%

1-Minute Revision

  • ›CBAM Effective Date: January 2026
  • ›India's Steel Exports to EU: Two-thirds of total exports
  • ›Target this Data: Emission intensity threshold for Green Steel is <2.2 t-CO2e/tonne of finished steel.
  • ›Target this Nodal Body: The Ministry of Steel is the nodal ministry for the Green Steel Taxonomy and pilot projects under the National Green Hydrogen Mission.
  • ›Target this Legal Point: The EU's Carbon Border Adjustment Mechanism (CBAM) came into effect in January 2026.

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Q1Static LinkageEasy

Which ministry is the nodal agency for implementing India's Green Steel Taxonomy and related pilot projects?

Q2Statement-basedHard

Consider the following statements regarding India's efforts to decarbonise the steel sector:

1. India's Green Steel Taxonomy, released in December 2024, defines 'Five-star green-rated steel' as having an emission intensity lower than 1.6 t-CO2e per tonne of finished steel.

2. The 'Greening the Steel Sector of India' report targets reducing emission intensity from 2.65 to 2.0 tonnes of CO2 per tonne of crude steel by 2029-30.

3. India is the world's largest producer of hydrogen-based Direct Reduced Iron (DRI).

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what percentage of India's total steel making currently relies on scrap, and what is the national target for 2047?

Q4Application/ImpactMedium

What is the primary economic rationale, as highlighted in the article, for India to urgently decarbonise its steel industry?

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