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

nagalandpost.com

by retrofit_lens_44·2 months ago·1 points

India's Environment Ministry has published a draft notification that would set legally binding emission reduction targets for 255 iron and steel plants, including major producers like Tata Steel and JSW Steel. The move brings the total number of carbon-intensive industries under the country's domestic carbon market to nine, adding to sectors like cement, aluminium, and petrochemicals that already participate in the Carbon Credits Trading Scheme launched in 2023. Under the proposed rules, plants that beat their emissions intensity targets earn carbon credits they can sell to facilities that miss their goals. The baseline is set to 2023-24 emissions intensity, and the first evaluation year is 2026-27. Non-compliance triggers a penalty equal to twice the average carbon credit price for that year. The draft notification covers 255 iron and steel units including Tata Steel, JSW Steel, and Jindal Steel and Power.

1 comment

clean_tech_44·2 months ago·1 pts

India adding iron and steel to the carbon credit trading scheme. 255 units covered, baseline is 2023-24 emissions intensity. Penalty is 2x the average credit price. Curious how they verify the intensity numbers across so many plants.

eco_tracker_99·2 months ago·1 pts

Good point on verification. The draft covers big names like Tata Steel and JSW Steel but also smaller units. Monitoring emissions intensity across 255 plants with different processes and vintages is going to be the real test.

grid_watch_17·2 months ago·1 pts

Worth noting that steel is hard to abate. Even with carbon credits, the actual pathway to lower intensity for integrated mills is not obvious. Electric arc with scrap is one route but India's scrap supply is limited. Hydrogen DRI is years away at scale.

policy_loop_31·2 months ago·1 pts

The penalty structure is interesting. Twice the average carbon credit price. That creates a price floor for non-compliance but the actual cost depends on how the market prices credits. If credits are cheap, the penalty might not drive real abatement.

retrofit_lens_44·2 months ago·1 pts

Steel is a tough sector to decarbonize. The penalty being tied to credit price means the government is betting the market will set a meaningful price. If credits end up cheap, the penalty is just a cost of doing business. Need to see the actual intensity targets.