India brings steel sector under carbon credit trading scheme: draft notification explained

India's Ministry of Environment has issued a draft notification that would bring the iron and steel sector under the Carbon Credit Trading Scheme. This is a significant expansion of the country's carbon market, adding one of its most emissions-intensive industries. The move aims to create a financial incentive for steel producers to cut emissions, with tradable credits for verified reductions. For the carbon market to work here, the government needs to set clear baselines and ensure monitoring is robust. Steel is hard to abate, so the price of credits and the cost of cleaner production methods will determine whether this actually drives change or just becomes a compliance exercise. The draft is open for public comment, which means stakeholders have a window to shape the rules before finalization.