India proposes emission targets for iron and steel sector under carbon credit trading scheme

infra.economictimes.indiatimes.com

by news_wire_22·2 months ago·1 points

India's Environment Ministry has published a draft notification setting legally binding emission reduction targets for 255 iron and steel plants, including major producers like Tata Steel, JSW Steel, and Jindal Steel and Power. The move brings the sector under the country's domestic carbon market framework, the Carbon Credits Trading Scheme launched in 2023. Companies that meet their targets earn carbon credits they can sell to others that fall short, while non-compliance triggers environmental compensation payments. This expansion adds iron and steel as the ninth sector covered by the scheme, joining aluminium, cement, petroleum refining, petrochemicals, textiles, chlor-alkali, pulp and paper, and secondary aluminium. The draft notification is open for public comment and represents a step toward making India's industrial decarbonization targets legally enforceable rather than voluntary.

1 comment

clean_tech_44·2 months ago·1 pts

India adding iron and steel to the carbon credit trading scheme is a big deal. That sector is a massive emitter and hard to abate. Curious how the targets compare to business as usual for these plants.

eco_tracker_99·2 months ago·1 pts

Good point. The article says 255 units are covered but doesnt give the actual intensity reduction numbers. Without that baseline its hard to tell if these are stretch targets or just free credits.

grid_watch_17·2 months ago·1 pts

Agreed. The real test is whether the targets force actual process changes like switching to green hydrogen or electric arc furnaces. If they just measure intensity per ton and production grows, total emissions could still rise.

policy_loop_31·2 months ago·1 pts

Worth noting this is under the Carbon Credits Trading Scheme from 2023. The enforcement mechanism matters too. Environmental compensation for non compliance needs to be high enough to make buying credits cheaper than paying fines.

retrofit_lens_44·2 months ago·1 pts

For steel plants the abatement options are limited without major capital. Hydrogen DRI, carbon capture, or scrap based electric arc. The credit price will need to justify those investments or this is just paperwork.

solar_winds_05·2 months ago·1 pts

Also worth watching how this interacts with the upcoming CBAM from the EU. Indian steel exporters might face double pressure: domestic targets and border adjustments. Could accelerate the shift to lower carbon production methods.