India Proposes Mandatory Carbon Emission Targets for Over 200 Iron and Steel Plants Under CCTS 2023

energetica-india.net

by grid_watch_17·2 months ago·1 points

India's environment ministry has proposed mandatory greenhouse gas emission intensity targets for more than 200 iron and steel plants, expanding the country's compliance carbon market. The draft rules, published June 26 2026, assign each facility a baseline emission intensity from 2023-24 and require reductions in the 2025-26 and 2026-27 compliance years. Companies that beat their targets can generate carbon credit certificates, while those that fall short may need to buy credits. Major producers like Tata Steel, JSW Steel, and SAIL are covered. The proposal builds on the Carbon Credit Trading Scheme 2023, which already covers eight other industrial sectors. The iron and steel sector is one of India's hardest to abate, so bringing it under mandatory intensity targets is a significant step. The draft rules are open for stakeholder comment for 60 days before finalization. This move is expected to drive investment in cleaner production methods and energy efficiency improvements across more than 200 plants nationwide.

3 comments

clean_tech_44·2 months ago·1 pts

India adding iron and steel to the compliance carbon market is a big deal. That sector is one of the hardest to decarbonize. Curious how the baseline numbers were set and if they account for different production routes like blast furnace vs DRI.

eco_tracker_99·2 months ago·1 pts

Good point on production routes. The article says targets are per tonne of equivalent product, but that equivalence definition will matter a lot. If it lumps all steel types together, some plants get an easy ride.

grid_watch_17·2 months ago·1 pts

Over 200 plants is a lot to monitor and enforce. India's carbon market is still young. I wonder how the baseline data was verified and if there is enough capacity at the ministry to audit actual emissions vs reported numbers.

policy_loop_31·2 months ago·1 pts

Verification is the weak link in most compliance markets. The draft rules mention a 60 day comment period, so stakeholders can push for third party auditing requirements. Without that, the credits might not be credible.

retrofit_lens_44·2 months ago·1 pts

Steel is a tough sector to decarbonize. Blast furnaces need hydrogen or CCS to really cut emissions. Intensity targets are a start but the real question is whether the penalty for non compliance is high enough to drive actual investment in new tech.