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The Indian government is urging steel exporters to adopt ‘5-star’ green steel standards to overcome barriers posed by the European Union’s Carbon Border Adjustment Mechanism (CBAM) and similar carbon tax regimes globally. The move is part of India’s broader strategy to protect its steel exports and enhance competitiveness in low-carbon markets.
Officials explained that steelmakers will be encouraged to certify their products under a new sustainability framework that grades steel based on carbon intensity, renewable energy use, and environmental compliance. Producers achieving the top “5-star” rating will be better positioned to access premium markets and avoid steep carbon taxes.
The government is also considering financial incentives and policy support to help domestic players transition to green hydrogen, renewable power, and carbon capture technologies. With nearly two-thirds of India’s steel exports headed to Europe, aligning with global green standards has become a pressing priority.
Industry leaders believe that the ‘5-star’ initiative will not only safeguard export revenues but also push Indian steelmakers toward long-term decarbonisation, innovation, and global leadership in sustainable steel.
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