Steel Sector Under Pressure to Cut Emissions

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The global steel industry, one of the largest contributors to carbon emissions, is facing mounting pressure to transition to cleaner technologies. At the heart of this challenge is India, now emerging as the most polluting steel producer in the world.

Coal-Driven Production Fuels Emissions

Globally, the steel industry is responsible for over ten percent of total carbon emissions, with most of the production still dependent on coal-based blast furnaces, especially in developing nations. While China maintains the world’s largest steel production capacity, India is drawing attention for its high emissions intensity.

The Global Energy Monitor (GEM) reports that India not only tops the list in emissions but also leads in developing new capacity, with over 350 million tons per year of steel projects in the pipeline. Due to the scarcity of scrap metal—a key raw material for greener methods—most companies plan these projects as coal-based.

India’s Role in Global Green Steel Transition

“India is now the bellwether of global steel decarbonisation,” said Astrid Grigsby-Schulte, Project Manager at GEM. She warned that unless India steps up its efforts toward green steel production, the entire sector risks missing a crucial climate milestone. GEM’s latest data reveals that by 2030, nearly 36% of global steel production could come from non-coal methods, inching close to the International Energy Agency’s 37% target—a critical benchmark on the path to net-zero emissions by mid-century.

Electric Arc Furnaces and DRI Offer Greener Alternatives

Nations around the world are gradually embracing low-emission technologies such as electric arc furnaces (EAF) and direct reduced iron (DRI). These methods drastically cut emissions by reducing reliance on coal. However, India’s continued dependence on traditional processes threatens to derail global progress unless the country ramps up investment in clean alternatives.

A Tipping Point for India’s Steel Industry

The urgency for India to pivot toward green steel is now undeniable – not just for domestic environmental reasons, but also to stay aligned with global decarbonisation efforts. As reported by knnindia.co.in, if India fails to act swiftly, it could undermine global climate goals and slow down the transformation of one of the world’s most energy-intensive industries.