Context:
India launched the world’s first Green Steel Taxonomy
Features of Green Steel Taxonomy:
- Definition – Green steel is defined as steel with a CO2 equivalent emission intensity of less than 2.2 tonnes of CO2 per tonne of finished steel.
- Star Rating System –
- Five-star: Emission intensity lower than 1.6 tonnes
- Four-star: Emission intensity between 1.6 and 2.0 tonnes
- Three-star: Emission intensity between 2.0 and 2.2 tonnes
- Steel with emission intensity higher than 2.2 tonnes does not qualify as green steel.
- Nodal Agency – National Institute of Secondary Steel Technology (NISST) is responsible for measurement, reporting, verification (MRV), and issuing greenness certificates and star ratings annually3.
- Review Period – Emission intensity threshold will be reviewed every 3 years to ensure continuous improvement and alignment with technological advancements.
Importance of Green Steel Taxonomy:
- Environmental Sustainability – Promotes decarbonization of the steel sector, a major contributor to greenhouse gas emissions.
- Global Competitiveness – Ensures Indian steel meets international sustainability standards and remains competitive amid global policies like the EU’s Carbon Border Adjustment Mechanism (CBAM).
- Market Creation – Drives demand for low-carbon steel products and encourages innovation in sustainable steelmaking technologies.
Initiatives to Decarbonize the Steel Sector in India
- National Mission on Green Steel (NMGS): A proposed ₹15,000 crore mission under the upcoming Green Steel Policy to support the decarbonization of the steel industry.
- Green Steel Public Procurement Policy (GSPPP): Promotes the use of green steel in government procurement, creating a market for low-carbon steel products.
- Steel Scrap Recycling Policy 2019: Encourages the use of scrap in steel production, reducing reliance on primary production routes that are more carbon-intensive.
- Perform, Achieve and Trade (PAT) Scheme: Incentivizes energy efficiency improvements in the steel sector.
Source: ET
Previous Year Question
On which of the following can you find the Bureau of Energy Efficiency Star Label?
1. Ceiling fans
2. Electric geysers
3. Tubular fluorescent lamps
Select the correct answer using the code given below. [UPSC Civil Services Exam – 2016 Prelims]
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (d)