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India’s Steel Sector Takes Bold Steps Toward Decarbonization

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Business 02 Apr 2025 10:28 AM IST solarquarter

India prioritizes green steel transition with new decarbonization strategies.
Hydrogen-based steelmaking, carbon capture, and renewables drive sustainability.
Efforts align with global trade trends, ensuring industry competitiveness.

India is taking significant strides toward green steel production, introducing a series of decarbonization initiatives aimed at reducing emissions in one of the country’s most carbon-intensive industries. As global markets push for sustainable and low-carbon steel, India’s efforts align with its commitment to net-zero targets and environmental sustainability.

The initiatives focus on increasing the use of renewable energy, hydrogen-based steelmaking, and carbon capture technologies. The government is also promoting policy incentives, industry collaborations, and research investments to facilitate the transition. Leading domestic steelmakers are actively investing in green hydrogen projects, electric arc furnaces, and circular economy models to curb carbon footprints.

Experts highlight that decarbonization in steel is essential for India’s global competitiveness, as major trading partners, including the EU, introduce carbon border adjustment mechanisms (CBAMs). By embracing green steel technology, India aims to ensure long-term sustainability, attract eco-conscious investors, and secure a strong position in global trade.

While challenges remain in terms of high costs, infrastructure limitations, and technology scalability, India’s dedication to green steel innovation marks a transformative shift in the industry’s future.