India's Ministry of Environment, Forest and Climate Change has issued a draft notification requiring 255 steel plants to meet legally binding carbon intensity targets under the Carbon Credit Trading Scheme. The rules, based on FY2023-24 data, set reduction targets from 2.1% to 9.3% per plant, with a sector average of 5.5%. Plants that beat their targets earn tradable credits; those that fall short must buy credits or pay double the average market price. The policy covers 148.7 million tons of steel production and replaces older energy-consumption metrics with direct emissions tracking. Critics note that treating large integrated mills and small coal-based furnaces under the same standard could let smaller plants buy cheap credits instead of upgrading. However, the audited emission data also gives Indian exporters a way to offset carbon border taxes like the EU's CBAM. Major steelmakers are already acting. AM/NS India secured a 989 MW solar-wind hybrid project for its Hazira plant. Tata Steel installed coke dry quenching and blast furnace gas recovery systems. JSW Steel commissioned a 10 MW green hydrogen plant at Vijayanagar. These moves show the sector is preparing for compliance, though the long-term impact depends on whether future target cycles force deeper structural changes.
