India plans Rs 5,000 crore scheme for green steel technology to cut carbon emissions

The Indian government is preparing a Rs 5,000 crore scheme called the National Strategy for Sustainable Secondary Steel to help steelmakers adopt cleaner technologies. The plan targets carbon emission reductions in the steel sector, one of India's highest-emitting industries, and aligns with the country's net-zero commitment under the Paris Agreement. The scheme is expected to launch within three months and will cover all steel producers, with a focus on secondary steel makers. Steel production is hard to decarbonize because it requires high-temperature heat and chemical processes that currently rely on coal. This scheme aims to fund adoption of alternative materials and cleaner processes. The details on how the money will be distributed and what technologies qualify are still unclear, but the move signals that India is starting to tackle industrial emissions directly. For carbon markets and climate finance watchers, this is a notable policy signal. If the scheme includes performance-based incentives or carbon accounting requirements, it could create new demand for emissions verification and low-carbon steel certifications. The real test will be in the implementation and whether the funding reaches actual retrofits rather than just studies.