EnvironmentGS3

India's Steel Sector Faces Narrow Window to Cut Emissions

The Hindu·2026-10-17· Read original

"India's Steel Sector Faces Narrow Window to Cut Emissions"

Prelims Facts

  • •India's steelmaking emissions are about 32% higher than the global average. They account for nearly 12% of India's total greenhouse gas emissions.
  • •The National Mission on Green Steel targets cutting emission intensity from about 2.55-2.65 tCO2e to 2.2 tCO2e per tonne of crude steel by 2029-30.
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Key Terms

BF-BOF (Blast Furnace-Basic Oxygen Furnace)

the traditional, coal-heavy method of making steel from iron ore

EAF (Electric Arc Furnace)

a furnace that makes steel from scrap or reduced iron using electricity

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Study Note

BackgroundCore Concept

Background

India's steel sector is one of the hardest industries to make carbon-free. It needs both intense heat and a chemical reducing agent to turn iron ore into metal. The country has committed to reaching net-zero emissions by 2070. This target requires every major emitting sector, including steel, to find a lower-carbon path. To support this, the government runs the National Mission on Green Steel. It sets emission-intensity targets and certifies steel as 'green' once it falls below a fixed threshold.

Steel decarbonisation is closely linked to the wider push for green hydrogen in Indian industry. Green hydrogen is hydrogen made using renewable electricity, which can replace coal or natural gas as a reducing agent. This matters beyond steel alone. Fertilizer plants use hydrogen to make ammonia. Oil refineries use it to remove sulphur from fuel. Green hydrogen can help decarbonise fertilizer, refining, and steel production together. This is why India's hydrogen mission treats these sectors as a connected cluster rather than separate problems.

A ₹5,000-crore scheme to speed up steel sector decarbonisation was announced last year. It is expected to launch in the coming months. This comes as India's steel production has grown rapidly. Construction, infrastructure, and vehicle manufacturing drive this growth. The sector's emissions trajectory is a major factor in whether India can meet its climate commitments.

The Topic Explained

Most steel in India and the world is made using the blast furnace-basic oxygen furnace (BF-BOF) method. A BF-BOF plant burns coking coal to smelt iron ore into liquid iron. Then it uses pure oxygen to burn away impurities and make steel. This process is highly carbon-intensive. It depends on coal both for heat and as a chemical reducing agent.

The cleaner alternative is the electric arc furnace (EAF). It uses electricity instead of coal to make steel from recycled scrap or directly reduced iron (DRI). Where enough scrap is unavailable, DRI plants can use natural gas or, increasingly, green hydrogen. …

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Related PYQs

2023GS1 Prelims

Consider the following heavy industries:

1.Fertilizer plants

2.Oil refineries

3.Steel plants

Green hydrogen is expected to play a significant role in decarbonizing how many of the above industries?

AOnly one
BOnly two
CAll three
DNone
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Practice MCQs

Environmentmedium

With reference to India's steel sector, consider the following statements:

1.The BF-BOF method is more carbon-intensive than the electric arc furnace method.

2.Electric arc furnaces primarily use coking coal to reduce iron ore.

3.India's National Mission on Green Steel sets an emission-intensity threshold to certify steel as 'green'.

Which of the statements given above is/are correct?

A1 and 3 only
B2 only
C1, 2 and 3
D2 and 3 only
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Environmentmedium

As per the National Mission on Green Steel's certification scheme, steel is classified as 'green' if its emission intensity is below approximately:

A1.0 tCO2e per tonne
B1.85 tCO2e per tonne
C2.2 tCO2e per tonne
D2.6 tCO2e per tonne
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Environmentmedium

Green hydrogen can play a significant role in decarbonising which of the following industries?

1.Fertilizer plants

2.Oil refineries

3.Steel plants

A1 and 2 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
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Environmentmedium

Consider the following pairs:

Steelmaking route — Primary energy/reducing input

1.BF-BOF — Coking coal

2.Electric Arc Furnace — Electricity (scrap/DRI)

3.Electric Induction Furnace — Electromagnetic fields (scrap/DRI)

How many of the above pairs are correctly matched?

AOnly one
BOnly two
CAll three
DNone
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Environmenteasy

Relining a blast furnace in India's steel industry primarily refers to:

AConverting a blast furnace into an electric arc furnace
BA capital-intensive maintenance process that extends a furnace's operating life by 15-20 years
CShifting a plant's fuel source from coal to green hydrogen
DDecommissioning an old blast furnace permanently
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