Indian steelmakers must align their ambitious decarbonisation targets with tangible actions, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The report highlights that while Indian companies are demonstrating proactive intent, they face challenges due to the absence of effective carbon pricing mechanisms and large-scale public financial support.
Proactive Intent Without Carbon Pricing
Despite the lack of a comprehensive carbon pricing framework in India, several steel manufacturers have announced net-zero emission goals. However, IEEFA emphasises that these commitments need to be backed by concrete investment plans and technology adoption. The steel sector is one of the hardest-to-abate industries, contributing significantly to India's carbon emissions.
Challenges in Decarbonising Steel
The report notes that Indian steelmakers are exploring hydrogen-based steelmaking, carbon capture, and increased scrap usage. Yet, the high cost of green hydrogen and limited scrap availability pose hurdles. IEEFA calls for stronger policy support, including carbon pricing and green finance incentives, to accelerate the transition.
According to the press statement, Indian companies are showing proactive intent despite the absence of effective carbon pricing or large-scale public financial support. The report urges the government to create a conducive policy environment to help the sector achieve its climate goals.
